Bank of Baroda on Friday informed, in an exchange filing, that the Reserve Bank of India had imposed a penalty of ₹5 crore on the bank, in light of a shortage in the soiled note remittances. The RBI also imposed an additional penalty of ₹2,750 on the bank after it detected “fake and mutilated” notes in the soiled note remittances.
According to the exchange filing, the bank was informed of these penalties on December 18 and 20, respectively.
A ‘soiled note’ is a “note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing,” according to the RBI.
India’s central bank imposes these penalties in keeping with a Clean Note Policy, which mandates that a “penalty be levied immediately on detection of shortage in soiled note remittances/chest balances, irrespective of the number of pieces detected.”
