From The Hindu, February 28, 1975: Nationalised banks asked to exchange soiled notes

New Delhi, Feb. 27: All branches of nationalised banks and the branches and subsidiaries of the State Bank of India have been asked by the Government to exchange soiled currency notes tendered by the public.

Mr. Pranab Mukherjee, Minister of State for Finance, disclosed in the Lok Sabha to-day that orders to this effect had been issued to the banks on June 15, last year.

The Minister was replying to a calling attention motion of Mr. R.K. Sinha and others. Members complained about the difficulty of the public in getting soiled and mutilated notes exchanged.

Mr. Mukherjee admitted that at present it took “some time” to get payment for mutilated notes at the Reserve Bank. “In order to reduce that time and inconvenience, the Reserve Bank is going to revise the rules,” he said.

He also denied that there was any “racket” in exchange of soiled notes in the Reserve Bank. Mr. Mukherjee gave details of three instances of circulation of some mutilated notes because of wrong exercise of jurisdiction by some officers.