Fact Check: Do Star Series Banknotes Have A Legal Tender? Know What RBI Clarifies



New Delhi: In recent times, there has been some confusion and discussions on social media regarding the validity of banknotes with a Star (*) symbol present on the number panel. Reserve Bank of India (RBI) has clarified that notes with star (*) symbol are totally legal tender.

To clarify the matter, the Reserve Bank of India (RBI) has shed light on the purpose and significance of the Star Series banknotes. The Star (*) symbol is an identifier inserted in the number panel of a banknote used as a replacement for defectively printed banknotes in a packet of 100 pieces of serially numbered banknotes. This replacement system was introduced to ensure the smooth circulation of currency by effectively managing banknotes with printing errors.

It is important to understand that a banknote bearing the Star (*) symbol is no different from any other legal banknote in terms of its value and acceptance. The only distinction lies in the number panel, where the Star (*) symbol is placed between the prefix and the serial number. This simple addition indicates that the particular banknote is a replaced or reprinted version.

cre Trending Stories

The RBI website features detailed information about the “Star Series” banknotes, which can be found in the FAQs section on Indian Currency (Question 9 of Section B). This resource provides a comprehensive understanding of the replacement system and aims to clarify any misconceptions regarding the Star (*) symbol on banknotes.

Before August 2006, fresh banknotes issued by the Reserve Bank of India were serially numbered, with each banknote featuring a distinctive serial number accompanied by a prefix consisting of numerals and letters. These banknotes were issued in packets containing 100 pieces.

The adoption of the “STAR series” numbering system marked a significant step in managing defectively printed banknotes. When an issue was discovered in a packet of 100 banknotes, instead of recalling the entire packet, the RBI initiated the practice of replacing only the defective notes with the Star Series banknotes. This approach not only minimized inconvenience for the public but also ensured a more efficient circulation of currency.

In essence, the Star Series banknotes are identical to other legal tender in terms of value, design, and security features. The additional character, the *(star), serves solely as a marker to identify and segregate replaced or reprinted banknotes from the standard serially numbered ones.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *