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Circular No 218/2016 - Process for handling soiled / mu

SOILED NOTE - Means a note which has become dirty due to normal wear an
together wherein both the pieces presented belong to the same note and form

IF IDENTIFIED AT THE BRANCH

1) Soiled notes tendered by customers / non customers over the counter for 3) Soiled notes found in cash deposits at offsite ATMs.
exchange. A) Currency chest supported branches
Notes presented in small number: - The value of the soiled notes detected in the ATM cash deposit will be credi
a) Where the number of notes presented by a person is upto 20 pieces with a the Accounts Payable GL and the balance will be credited to the customer’s ac
maximum value of Rs. 5000/- per day, branches to exchange them over the counter - An intimation letter will have to be sent to the customer as per Annexure-3.
free of cost, - For the soiled notes detected a DN-1 form will be prepared by annotating “r
b) Obtain application in Form DN 1 form from the customer, in triplicate (Annexure- in ATM - Cash deposit”
1), and make note of the exchange in DN 2 register. - The soiled notes will be sent to the Currency Chest as per details mentioned
and the customer’s account will be credited for the adjudicated value receive
Notes presented in bulk: Currency Chest.
Where the number of notes presented by a person exceeds 20 pieces or Rs. 5000/- - Communication letter as per Annexure-4 along with acknowledged copy of D
in value per day, branches may accept them, against receipt , for value to be credited form duly signed by Currency Chest Staff will be sent to the customer as an ad
later, the soiled notes received.
- In such cases cash received should be parked in Accounts Payable GL and customer
payment to be made through MC / DD / NEFT / RTGS transfer - FLEXCUBE ENTRIES
- Obtain application in Form DN 1 form from the customer, in triplicate (Annexure-1),
- Obtain duly self attested copy of Officially Valid Documents (OVDs) and PAN card - On receipt of soiled notes in offsite ATM cash deposits
from the person tendering soiled notes for exchange (in case of a non-customer), > Cr Accounts Payable GL # 290701263 using FC option 1460 (misc GL credit
- Original Officially Valid Documents (OVDs) and PAN card to be sighted & the same Narration: Soiled Note collected DN-1 No <Token No>
to be documented on the photocopy retained by the branch (in case of a
noncustomer), - While offloading cash to Currency Chest
- Provide a token number in the format (Running Number / Financial Year – eg : > Dr Branch dummy ………………….…A/c using FC option 1001 (cash wdl)
001/2016-17 ) and write it on DN-1 form. This number is to be reset at the beginning Narration: Soiled Note remitted to CC Dt. <From> - <To>
of the FY.
- Provide an acknowledgement to the customer (on the customer's copy) by affixing - On adjudication of actual value
a stamp : “Received for Collection. Date:____________” > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
- Update DN-2 register (Format as per Annexure 2) > Cr Cash shortages Currency chest a/c for shortage (Face Value- Adjudicated
- Update token number, total number of notes and aggregate face value of each DN Narration: Soiled Note collected DN-1 No <Token No>
1 form in the DN-2 register
to be documented on the photocopy retained by the branch (in case of a
noncustomer), - While offloading cash to Currency Chest
- Provide a token number in the format (Running Number / Financial Year – eg : > Dr Branch dummy ………………….…A/c using FC option 1001 (cash wdl)
001/2016-17 ) and write it on DN-1 form. This number is to be reset at the beginning Narration: Soiled Note remitted to CC Dt. <From> - <To>
of the FY.
- Provide an acknowledgement to the customer (on the customer's copy) by affixing - On adjudication of actual value
a stamp : “Received for Collection. Date:____________” > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
- Update DN-2 register (Format as per Annexure 2) > Cr Cash shortages Currency chest a/c for shortage (Face Value- Adjudicated
- Update token number, total number of notes and aggregate face value of each DN Narration: Soiled Note collected DN-1 No <Token No>
1 form in the DN-2 register
- The soiled notes to be sent to mapped Currency Chest on the next visit scheduled - The balance amount (adjudicated value) to be credited to customer’s a/c
- While sending cash to currency chest, branch to update DN 2 register with ‘Date of > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
remittance to Currency Chest’ > Cr CASA account of customer
- Soiled notes to be sent to Currency Chest along with the DN-1 form/s, Narration: Soiled Note collected DN-1 No <Token No>
- On receipt of soiled notes from branches, Currency Chest would credit the Branch
dummy A/c for entire value of soiled notes. The credit would be affected latest by B) Branches not supported by Currency chest
the next working day and may result in an overnight TOD in Branch Dummy A/c, - The value of the soiled notes detected in the ATM cash deposit will be credit
- On adjudication, Currency Chest will send on email, the scan copy of DN-1 form the Accounts Payable GL and the balance will be credited to the customer’s ac
mentioning adjudicated value of individual note duly signed by Currency Chest Staff - An intimation letter will have to be sent to the customer as per Annexure-3.
and mention the loss (i.e. Face Value less Adjudicated Value) to be credited to - For the soiled notes detected a DN-1 form will be prepared by annotating “r
Currency Chest Shortage account, in ATM Cash deposit”.
- Credit to currency chest shortage account by Branch has to be posted within T+2 - The soiled notes would be exchanged with other bank chest / other banks. O
days, receipt of credit from other bank the customer’s account will be credited for t
- Branch would make payment to customer for balance amount in Accounts payable adjudicated value received from other bank currency chest / other banks.
(Face Value – Shortage), and as an advice to the tenderer of soiled notes, branch will - Communication letter as per Annexure-4 along with credit advice received fr
provide copy of DN1 form provided by Currency Chest. other bank will be sent to the customer as an advice for the soiled notes recei
FLEXCUBE ENTRIES - FLEXCUBE ENTRIES
- On acceptance of soiled notes from the customer:
> Cr Accounts Payable GL # 290701263 (for Face Value) using FC option 1460 (misc - On receipt of soiled notes in offsite ATM cash deposits
GL credit) > Cr Accounts Payable GL # 290701263 using FC option 1460 (misc GL credit
Narration: Soiled Note collected DN-1 No <Token No> Narration: Soiled Note collected DN-1 No <Token No>
- While sending cash to currency chest: - While offloading cash to other Bank / Currency chest of other bank
> Dr Branch Dummy A/c (for Face Value) using FC option 1001 (cash wdl) > Dr Branch dummy a/c using FC option 1001 (cash wdl)
Narration: Soiled Note remitted to CC Dt. <From> - <To> Narration: Soiled Note remitted to Bank Name DT <From> - <To>
- On receipt of the mail intimation regarding adjudication from Currency Chest: - On receipt of adjudicated value from other Bank
> Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust credit) > Cr Branch dummy a/c using FC option 1401
> Cr Cash shortages Currency chest account Narration: Soiled Note collected DN-1 No <Token No>
Narration: Soiled Note collected DN-1 No <Token No>
- For shortage (Face Value- Adjudicated Value)
- On payment of adjudicated value to the customer: > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
i. Payment by cash > Cr Branch dummy a/c
> Dr Accounts Payable GL # 290701263 using FC option 1060 (misc GL debit) Narration: Soiled note collected DN-1 No <Token No>
Narration: Soiled Note collected DN-1 No <Token No>
ii. Credit to account (For Account holders) - The balance amount (adjudicated value) to be credited to customer's a/c
> Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust credit) > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
> Cr CASA account of Customer > Cr CASA account of Customer
Narration: Soiled Note collected DN-1 No <Token No> Narration: Soiled Note collected DN-1 No <Token No>
iii. MC / DD / NEFT payment
> Dr Accounts Payable GL # 290701263
(Issue MC / DD or process NEFT favoring the customer basis details mentioned on DN
1 Form)
ii. Credit to account (For Account holders) - The balance amount (adjudicated value) to be credited to customer's a/c
> Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust credit) > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
> Cr CASA account of Customer > Cr CASA account of Customer
Narration: Soiled Note collected DN-1 No <Token No> Narration: Soiled Note collected DN-1 No <Token No>
iii. MC / DD / NEFT payment
> Dr Accounts Payable GL # 290701263
(Issue MC / DD or process NEFT favoring the customer basis details mentioned on DN
1 Form)

Updated on: 23rd Dec 2016

2) Soiled notes deposited by Collection executives.


- In case soilednotes are found in the cash deposited by collections executives, it
would be returned back to the executive for exchange.
- In case the Collection executive wants to exchange the soiled note, the same will
have to be deposited through a DN-1 form (as per process mentioned in section 1)
ndling soiled / mutilated / imperfect notes by branches

dirty due to normal wear and tear and also includes a two piece note pasted
g to the same note and form the entire note with no essential feature missing.

IF IDENTIFIED AT CURRENCY CHEST

e ATMs. - The currency chest initially gives credit to the branch dummy for the entire
amount remitted and then sorts the cash.
ATM cash deposit will be credited in - In case of any soiled note detected while sorting, the currency chest would
e credited to the customer’s account. ascertain the actual value of each note.
e customer as per Annexure-3. - In case of half / nil value notes, currency chest will book the shortage by debiting
ll be prepared by annotating “received their cash shortage account.
Chest as per details mentioned above
- Currency chest will not return the adjudicated notes to the branch. Only a mail intimation
will be sent.
r the adjudicated value received from
- FLEXCUBE ENTRIES
g with acknowledged copy of DN-1
e sent to the customer as an advice for > Dr Teller cash shortage GL # 390202703 using FC option 1408 (misc GL debit)
Narration: SN-Branch Name- Denomination x No of pieces

- In case the shortage can be recovered from the customer then the below entry is to be
posted
deposits > Dr CASA (of the customer) using FC option 1008 (misc cust debit)
FC option 1460 (misc GL credit) > Cr Teller cash shortage GL # 390202703
n No> Narration: Recovery SN – BR Name - Denomination x No of pieces

- In case the branch is not able to recover the amount from the customer or customer
FC option 1001 (cash wdl) cannot be identified , the amount parked in teller shortage will have to be taken up for
m> - <To> write-off after a period of 3 months.

FC option 1408 (misc cust credit)


ortage (Face Value- Adjudicated Value)
n No>
Narration: Recovery SN – BR Name - Denomination x No of pieces

- In case the branch is not able to recover the amount from the customer or customer
FC option 1001 (cash wdl) cannot be identified , the amount parked in teller shortage will have to be taken up for
m> - <To> write-off after a period of 3 months.

FC option 1408 (misc cust credit)


ortage (Face Value- Adjudicated Value)
n No>

e credited to customer’s a/c


FC option 1408 (misc cust credit)

n No>

ATM cash deposit will be credited in


e credited to the customer’s account.
e customer as per Annexure-3.
ll be prepared by annotating “received

her bank chest / other banks. On


’s account will be credited for the
rrency chest / other banks.
g with credit advice received from
dvice for the soiled notes received.

deposits
FC option 1460 (misc GL credit)
n No>
cy chest of other bank
(cash wdl)
DT <From> - <To>

ank

n No>

FC option 1408 (misc cust credit)

n No>

e credited to customer's a/c


FC option 1408 (misc cust credit)

n No>
e credited to customer's a/c
FC option 1408 (misc cust credit)

n No>
Circular No 218/2016 - Process for handling soiled / mu

MUTILATED NOTE - It is a currency note which has a portion missing or whic

IF IDENTIFIED AT THE BRANCH

1) Mutilated notes tendered by customers / non customers over the counter for 3) Mutilated notes found in cash deposits at offsite ATMs.
exchange. A) Currency chest supported branches
Notes presented in small number: - The value of the mutilated notes detected in the ATM cash deposit will be c
a) Where the number of notes presented by a person is upto 20 pieces with a in the Accounts Payable GL and the balance will be credited to the customer’s
maximum value of Rs. 5000/- per day, branches to exchange them over the counter account.
free of cost, - An intimation letter will have to be sent to the customer as per Annexure-3
b) Obtain application in Form DN 1 form from the customer, in triplicate (Annexure- - For the mutilated notes detected a DN-1 form will be prepared by annotatin
1), and make note of the exchange in DN 2 register. “received in ATM - Cash deposit”
- The mutilated notes will be sent to the Currency Chest as per details mentio
Notes presented in bulk: above and the customer’s account will be credited for the adjudicated value
Where the number of notes presented by a person exceeds 20 pieces or Rs. 5000/- from Currency Chest.
in value per day, branches may accept them, against receipt , for value to be credited - Communication letter as per Annexure-4 along with acknowledged copy of D
later, form duly signed by Currency Chest Staff will be sent to the customer as an ad
- In such cases cash received should be parked in Accounts Payable GL and customer the mutilated notes received.
payment to be made through MC / DD / NEFT / RTGS transfer
- Obtain application in Form DN 1 form from the customer, in triplicate (Annexure-1), - FLEXCUBE ENTRIES
- Obtain duly self attested copy of Officially Valid Documents (OVDs) and PAN card
from the person tendering soiled notes for exchange (in case of a non-customer), - On receipt of Mutilated notes in offsite ATM cash deposits
- Original Officially Valid Documents (OVDs) and PAN card to be sighted & the same > Cr Accounts Payable GL # 290701263 using FC option 1460 (misc GL credit
to be documented on the photocopy retained by the branch (in case of a Narration: Mutilated Note collected DN-1 No <Token No>
noncustomer),
- Provide a token number in the format (Running Number / Financial Year – eg : - While offloading cash to Currency Chest
001/2016-17 ) and write it on DN-1 form. This number is to be reset at the beginning > Dr Branch dummy ………………….…A/c using FC option 1001 (cash wdl)
of the FY. Narration: Mutilated Note remitted to CC Dt. <From> - <To>
- Provide an acknowledgement to the customer (on the customer's copy) by affixing
a stamp : “Received for Collection. Date:____________” - On adjudication of actual value
- Update DN-2 register (Format as per Annexure 2) > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
- Update token number, total number of notes and aggregate face value of each DN > Cr Cash shortages Currency chest a/c for shortage (Face Value- Adjudicate
1 form in the DN-2 register Narration: Mutilated Note collected DN-1 No <Token No>
- The mutilated notes to be sent to mapped Currency Chest on the next visit
noncustomer),
- Provide a token number in the format (Running Number / Financial Year – eg : - While offloading cash to Currency Chest
001/2016-17 ) and write it on DN-1 form. This number is to be reset at the beginning > Dr Branch dummy ………………….…A/c using FC option 1001 (cash wdl)
of the FY. Narration: Mutilated Note remitted to CC Dt. <From> - <To>
- Provide an acknowledgement to the customer (on the customer's copy) by affixing
a stamp : “Received for Collection. Date:____________” - On adjudication of actual value
- Update DN-2 register (Format as per Annexure 2) > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
- Update token number, total number of notes and aggregate face value of each DN > Cr Cash shortages Currency chest a/c for shortage (Face Value- Adjudicate
1 form in the DN-2 register Narration: Mutilated Note collected DN-1 No <Token No>
- The mutilated notes to be sent to mapped Currency Chest on the next visit
scheduled - The balance amount (adjudicated value) to be credited to customer’s a/c
- While sending cash to currency chest, branch to update DN 2 register with ‘Date of > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
remittance to Currency Chest’ > Cr CASA account of customer
- Mutilated notes to be sent to Currency Chest along with the DN-1 form/s, Narration: Mutilated Note collected DN-1 No <Token No>
- On receipt of mutilated notes from branches, Currency Chest would credit the
Branch dummy A/c for entire value of mutilated notes. The credit would be affected B) Branches not supported by Currency chest
latest by the next working day and may result in an overnight TOD in Branch Dummy - The value of the mutilated notes detected in the ATM cash deposit will be cr
A/c, in the Accounts Payable GL and the balance will be credited to the customer’s
- On adjudication, Currency Chest will send on email, the scan copy of DN-1 form account.
mentioning adjudicated value of individual note duly signed by Currency Chest Staff - An intimation letter will have to be sent to the customer as per Annexure-3
and mention the loss (i.e. Face Value less Adjudicated Value) to be credited to - For the mutilated notes detected a DN-1 form will be prepared by annotatin
Currency Chest Shortage account, “received in ATM Cash deposit”.
- Credit to currency chest shortage account by Branch has to be posted within T+2 - The mutilated notes would be exchanged with other bank chest / other ban
days, receipt of credit from other bank the customer’s account will be credited for t
- Branch would make payment to customer for balance amount in Accounts payable adjudicated value received from other bank currency chest / other banks.
(Face Value – Shortage), and as an advice to the tenderer of mutilated notes, branch - Communication letter as per Annexure-4 along with credit advice received f
will provide copy of DN1 form provided by Currency Chest. other bank will be sent to the customer as an advice for the mutilated notes r

FLEXCUBE ENTRIES - FLEXCUBE ENTRIES


- On acceptance of mutilated notes from the customer: - On receipt of mutilated notes in offsite ATM cash deposits
> Cr Accounts Payable GL # 290701263 (for Face Value) using FC option 1460 (misc > Cr Accounts Payable GL # 290701263 using FC option 1460 (misc GL credit
GL credit) Narration: Mutilated Note collected DN-1 No <Token No>
Narration: Mutilated Note collected DN-1 No <Token No>
- While offloading cash to other Bank / Currency chest of other bank
- While sending cash to currency chest: > Dr Branch dummy a/c using FC option 1001 (cash wdl)
> Dr Branch Dummy A/c (for Face Value) using FC option 1001 (cash wdl) Narration: Mutilated Note remitted to Bank Name DT <From> - <To>
Narration: Mutilated Note remitted to CC Dt. <From> - <To>
- On receipt of adjudicated value from other Bank
- On receipt of the mail intimation regarding adjudication from Currency Chest: > Cr Branch dummy a/c using FC option 1401
> Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust credit) Narration: Mutilated Note collected DN-1 No <Token No>
> Cr Cash shortages Currency chest account
Narration: Mutilated Note collected DN-1 No <Token No> - For shortage (Face Value- Adjudicated Value)
> Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
- On payment of adjudicated value to the customer: > Cr Branch dummy a/c
i. Payment by cash Narration: Mutilated note collected DN-1 No <Token No>
> Dr Accounts Payable GL # 290701263 using FC option 1060 (misc GL debit)
Narration: Mutilated Note collected DN-1 No <Token No> - The balance amount (adjudicated value) to be credited to customer's a/c
ii. Credit to account (For Account holders) > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
> Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust credit) > Cr CASA account of Customer
> Cr CASA account of Customer Narration: Mutilated Note collected DN-1 No <Token No>
Narration: Mutilated Note collected DN-1 No <Token No>
iii. MC / DD / NEFT payment
> Dr Accounts Payable GL # 290701263
(Issue MC / DD or process NEFT favoring the customer basis details mentioned on DN
1 Form)
Narration: Mutilated Note collected DN-1 No <Token No> - The balance amount (adjudicated value) to be credited to customer's a/c
ii. Credit to account (For Account holders) > Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust cred
> Dr Accounts Payable GL # 290701263 using FC option 1408 (misc cust credit) > Cr CASA account of Customer
> Cr CASA account of Customer Narration: Mutilated Note collected DN-1 No <Token No>
Narration: Mutilated Note collected DN-1 No <Token No>
iii. MC / DD / NEFT payment
> Dr Accounts Payable GL # 290701263
(Issue MC / DD or process NEFT favoring the customer basis details mentioned on DN
1 Form)

2) Mutilated notes deposited by Collection executives.


- In case mutilated notes are found in the cash deposited by collections executives,
it would be returned back to the executive for exchange.
- In case the Collection executive wants to exchange the mutilated note, the same
will have to be deposited through a DN-1 form (as per process mentioned in section
1)
ndling soiled / mutilated / imperfect notes by branches

has a portion missing or which is made up of more than two pieces

IF IDENTIFIED AT CURRENCY CHEST

ffsite ATMs. - The currency chest initially gives credit to the branch dummy for the entire
amount remitted and then sorts the cash.
the ATM cash deposit will be credited - In case of any mutilated note detected while sorting, the currency chest would
ll be credited to the customer’s ascertain the actual value of each note.
- In case of half / nil value notes, currency chest will book the shortage by debiting
e customer as per Annexure-3.
m will be prepared by annotating their cash shortage account.
- Currency chest will not return the adjudicated notes to the branch. Only a mail intimation
ncy Chest as per details mentioned will be sent.
dited for the adjudicated value received
- FLEXCUBE ENTRIES
ng with acknowledged copy of DN-1
e sent to the customer as an advice for > Dr Teller cash shortage GL # 390202703 using FC option 1408 (misc GL debit)
Narration: MN-Branch Name- Denomination x No of pieces

- In case the shortage can be recovered from the customer then the below entry is to be
posted
ash deposits > Dr CASA (of the customer) using FC option 1008 (misc cust debit)
FC option 1460 (misc GL credit) > Cr Teller cash shortage GL # 390202703
Token No> Narration: Recovery MN – BR Name - Denomination x No of pieces

- In case the branch is not able to recover the amount from the customer or customer
FC option 1001 (cash wdl) cannot be identified , the amount parked in teller shortage will have to be taken up for
From> - <To> write-off after a period of 3 months.

FC option 1408 (misc cust credit)


ortage (Face Value- Adjudicated Value)
Token No>
- In case the branch is not able to recover the amount from the customer or customer
FC option 1001 (cash wdl) cannot be identified , the amount parked in teller shortage will have to be taken up for
From> - <To> write-off after a period of 3 months.

FC option 1408 (misc cust credit)


ortage (Face Value- Adjudicated Value)
Token No>

e credited to customer’s a/c


FC option 1408 (misc cust credit)

Token No>

the ATM cash deposit will be credited


ll be credited to the customer’s

e customer as per Annexure-3.


m will be prepared by annotating

h other bank chest / other banks. On


’s account will be credited for the
rrency chest / other banks.
ng with credit advice received from
advice for the mutilated notes received.

cash deposits
FC option 1460 (misc GL credit)
Token No>

cy chest of other bank


(cash wdl)
me DT <From> - <To>

ank

Token No>

FC option 1408 (misc cust credit)

Token No>

e credited to customer's a/c


FC option 1408 (misc cust credit)

Token No>
e credited to customer's a/c
FC option 1408 (misc cust credit)

Token No>