New Delhi, Feb 19 (PTI) The idea of starting second shifts in existing universities and colleges is doing the rounds in government circles.A roundtable on higher education, set up by HRD Ministry, today discussed about such a measure which is aimed at utilising fully the facilities that remain unused after the class hours.
The committee, chaired by HRD Minister Kapil Sibal, explored the possibilities whether facilities could be used for second shifts in the existing institutions.There are about 480 universities and nearly 20,000 colleges in the country. Facilities at majority of these institutions remain unutilised in the evening hour.
The round table also discussed about uniform accounting standards to be followed by educational institutions. The educational institutions are following different accounting standards at present.It discussed about freedom for faculty to go outside the system for development and enhancement.
The members of the round table include UGC Chairman Sukhadeo Thorat and CSIR Director General Samir Brahmachari.
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Examples of physical certificates are drivers' licenses, passports or membership cards. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver's license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove your identity, to access information or services on the Internet or to sign certain documents digitally.
Like physical documents are signed manually, electronic documents, for example e-forms are required to be signed digitally using a Digital Signature Certificate.
A licensed Certifying Authority (CA) issues the digital signature. Certifying Authority (CA) means a person who has been granted a license to issue a digital signature certificate under Section 24 of the Indian IT-Act 2000.
The different types of Digital Signature Certificates are: Class 2: Here, the identity of a person is verified against a trusted, pre-verified database.
Class 3: This is the highest level where the person needs to present himself or herself in front of a Registration Authority (RA) and prove his/ her identity.
The Law of Contracts is the basis of business law because the bulk of transactions of the people engaged in trade, commerce and industry is based on contracts. In India, the Law of Contracts is contained in the Indian Contract Act,1872. The Act lays down the general principles relating to formation, performance and enforceability of contracts and the rules relating to certain special types of contracts like, Indemnity and Guarantee; Bailment and Pledge, and Agency. The Partnership Act; the Sale of Goods Act; the Negotiable Instruments Act; the Companies Act, though technically belonging to the Law of Contracts, have been covered by separate enactments. However, the general principles of the Contract Law are the basis for all such contracts as well.
The principal features of the Law of Contract are:-
The parties to the contract make the law for themselves.
The Act is not exhaustive since it does not take into its purview all the relevant legislations.
It does not override customs or usages.
The Law of Contracts is not the whole law of agreements.
As per the Indian Contract Act,1872, a "contract" is an agreement enforceable by law. The agreements not enforceable by law are not contracts. An "agreement" means 'a promise or a set of promises' forming consideration for each other. And a promise arises when a proposal is accepted. By implication, an agreement is an accepted proposal. In other words, an agreement consists of an 'offer' and its 'acceptance'.
An "offer" is the starting point in the process of making an agreement. Every agreement begins with one party making an offer to sell something or to provide a service, etc. When one person who desires to create a legal obligation, communicates to another his willingness to do or not to do a thing, with a view to obtaining the consent of that other person towards such an act or abstinence, the person is said to be making a proposal or offer.
An agreement emerges from the acceptance of the offer. "Acceptance" is thus, the second stage of completing a contract. An acceptance is the act of manifestation by the offeree of his assent to the terms of the offer. It signifies the offeree's willingness to be bound by the terms of the proposal communicated to him. To be valid an acceptance must correspond exactly with the terms of the offer, it must be unconditional and absolute and it must be communicated to the offeror.
An "agreement" is a contract if 'it is made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and is not expressly declared to be void'. The contract must be definite and its purpose should be to create a legal relationship. The parties to a contract must have the legal capacity to make it. According to the Contract Act, " Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of a sound mind, and is not disqualified from contracting by any law to which he is subject". Thus, minors; persons of unsound mind and Persons disqualified from contracting by any law are incompetent to contract.
Essential Elements of a Contract
Minimum two parties :- Atleast two parties are needed to enter into a contact. One party has to make an offer and other must accept it. The person who makes the 'proposal' or 'offer' is called the 'promisor' or 'offeror'. While, the person to whom the offer is made is called the 'offeree' and the person who accepts the offer is called the 'acceptor'.
Offer and acceptance :- There must be an 'offer' and an 'acceptance' to the offer, resulting into an agreement. Both offer and acceptance should be lawful.
Legal obligations :- The parties must intend to create a legal obligation.The agreement sought to be enforced should contemplate legal relations between the parties to it.
Lawful consideration:- A contract is basically a bargain between two parties, each receiving 'something' of value or benefit to them. This 'something' is described in law as 'consideration'. Consideration is an essential element of a valid contract. It is the price for which the promise of the other is bought. A contract without consideration is void. The consideration may be in the form of money, services rendered, goods exchanged or a sacrifice which is of value to the other party. This consideration may be past, present or future, but it must be lawful.
Competent parties:- The parties making the contract must be legally competent in the sense that each must be of the age of majority, of a sound mind, and not expressly disqualified from contracting. An agreement by incompetent parties shall be a legal nullity.
Free consent:- The contracting parties must give their consent freely. 'Consent' means that the parties must agree about the subject matter of the agreement in the same sense and at the same time. Consent is said to be free if it is not induced by coercion, undue influence, fraud,misrepresentation or mistake. The absence of free consent would affect the legal enforceability of a contract.
Lawful object:- The object of the agreement must be lawful. An agreement is unlawful, if it is:- (i) illegal (ii) immoral (iii) fraudulent (iv) of a nature that, if permitted, it would defeat the provisions of any law (v) causes injury to the person or property of another (vi) opposed to public policy.
Not expressly declared void:- An agreement expressly declared to be void under the Contract Act or under any other law, is not enforceable and is, thus, not a contract. The Contract Act declares void certain types of agreements such as those in restraint of marriage, or trade, or legal proceedings as well as wagering agreements.
Certainity and possibility of performance:- The terms of a contract must not be vague or uncertain. If an agreement is vague and its meaning cannot be ascertained, it cannot be enforced. Also,the terms of a contract must be such as are capable of performance. An agreement to do an impossible act is void and is not enforceable by law.
Legal formalities:- Generally, a contract may be oral or in writing. However, certain contracts are required to be in writing and may even require registration. Therefore, where law requires an agreement to be put in writing or be registered, the same must be complied with. For instance, the Indian Trusts Act requires the creation of a trust to be reduced to writing.
Breach of Contract
The remedies available to the aggrieved party, in case of breach of contract by the other party are:-
Suit for rescission of the contract :- Rescission is the revocation of a contract. When a contract is broken by one party, the other party may sue for rescission and refuse further performance. In such a case, the aggrieved party is absolved of all its obligations under the contract.
Suit for damages:- the party who is injured by the breach of a contract may bring an action for damages. Damage is the monetary compensation allowed by the court to the aggrieved party for the loss or injury suffered by him as the result of breach by the other party.
Suit for injunction:- An injunction is an order of the court requiring a person to refrain from doing some act which has been the subject matter of contract. The power to grant injunction is discretionary and it may be granted temporarily or for an indefinite period.
Suit upon 'Quantum Meruit' :- The term "quantum meruit" means, 'as much as is merited' or 'as much as earned'. A suit of quantum meruit is a claim for the value of the material used or supplied under a contract that has become void on account of breach by the other party. When a contract becomes void, any person who has received any advantages under such contract is bound to restore it, to the person from whom he received it.
Suit for specific performance:- When the loss suffered by breach of contract cannot be compensated by damages or where there are no standards to ascertain the quantum of damages, the aggrieved party may approach the Court for the grant of a decree for specific performance of the contract. Specific performance is granted when:-
A very inspiring, interesting and thought provoking speech by Shri Azim Premji at the 37th Annual Convocation 2002, IIM, Ahmedabad
“While change and uncertainty have always been a part of life, what has been shocking over the last year has been both the quantum and suddenness of change. For many people who were cruising along on placid waters, the wind was knocked out of their sails. The entire logic of doing business was turned on its head. Not only business, but also every aspect of human life has been impacted by the change. What lies ahead is even more dynamic and uncertain. I would like to use this opportunity to share with you some of our own guiding principles of staying afloat in a changing world. This is based on our experience in Wipro. I hope you find them useful.”
LESSON 1
“Be alert for the first signs of change.”
Change descends on every One equally; it is just that some realize it faster. Some changes are sudden but many others are gradual.While sudden changes get attention because they are dramatic, it is the gradual changes that are ignored till it is too late. You must have all heard of story of the frog in boiling water. If the temperature of the water is suddenly increased, the frog realizes it and jumps out of the water. But if the temperature is very slowly increased, one degree at a time, the frog does not realize it till it boils to death. You must develop your own early warning system, which warns you of changes and calls your attention to it. In the case of change, being forewarned is being forearmed.
LESSON 2
“Anticipate change even when things are going right."
Most people wait for something to go wrong before they think of change. It is like going to the doctor for a check up only when you are seriously sick or thinking of maintaining your vehicle only when it breaks down. The biggest enemy of future success is past success. When you succeed, you feel that you must be doing something right for it to happen. But when the parameters for success change, doing the same things may or may not continue to lead to success. Guard against complacency all the time. Complacency makes you blind to the early signals from the environment that something is going wrong.
LESSON 3
“Always look at the opportunities that change represents.”
Managing change has a lot to go with our own attitude towards it. It is proverbial half-full or half empty glass approach. For every problem that change represents, there is an opportunity lurking in disguise somewhere. It is up to you to spot it before someone else does.
LESSON 4
"Managing change has a lot to go with our own attitude towards it. It is proverbial half-full or half empty glass approach. For every problem that change represents, there is an opportunity lurking in disguise somewhere. It is up to you to spot it before someone else does.
For many of us the routine. We have got accustomed to obstructs change. Routines represent our own zones of comfort. There is a sense of predictability about them. They have structured our time and even our thought in a certain way. While routines are useful, do not let them enslave you. Deliberately break out of them from time to time.
LESSON 5
“Realize that fear of the unknown is natural.”
With change comes a feeling of insecurity. Many people believe that brave people are not afflicted by this malady. The truth is different. Every one feels the fear of unknown. Courage is not the absence of fear but the ability to manage fear without getting paralyzed. Feel the fear, but move on regardless.
LESSON 6
“Keep renewing yourself.”
This prepares you to anticipate change and be ready for it when it comes. Constantly ask yourself what new skills and competencies will be needed. Begin working on them before it becomes necessary and you will have a natural advantage. The greatest benefit of your education lies not only in what you have learnt, but in working how to learn. Formal education is the beginning of the journey of learning. Yet I do meet youngsters who feel that they have already learnt all there is to learn. You have to constantly learn about people and how to interact effectively with them. In the world of tomorrow, only those individuals and organizations will succeed who have mastered the art of rapid and on-going learning.
LESSON 7
“Surround yourself with people who are open to change."
If you are always in the company of cynics, you will soon find yourself becoming like them. A cynic knows all the reasons why something cannot be done. Instead, spend time with people who have a "can-do" approach. Choose your advisors and mentors correctly. Pessimism is contagious, but then so is enthusiasm. In fact, reasonable optimism can be an amazing force multiplier.
LESSON 8
“Play to win..!!"
I have said this many times in the past. Playing to win is not the same as cutting corners. When you play to win, you stretch yourself to your maximum and use all your potential. It also helps you to concentrate your energy on what you can influence instead of getting bogged down with the worry of what you cannot change. Do your best and leave the rest.
LESSON 9
“Respect yourself. The world will reward you on your successes."
Success requires no explanation and failure permits none. But you need to respect yourself enough so that your self-confidence remains intact whether you succeed or fail. If you succeed 90 per cent of the time, you are doing fine. If you are succeeding all the time, you should ask yourself if you are taking enough risks. If you do not take enough risks, you may also be losing out on many opportunities. Think through but take the plunge. If some things do go wrong, learn from them. I came across this interesting story some time ago:
Story
“One day a farmer's donkey fell down into a well. The animal cried piteously for hours as the farmer tried to figure out what to do. Finally he decided the animal was old and the well needed to be covered up anyway it just wasn't worth it to retrieve the donkey. He invited all his neighbors to come over and help him. They all grabbed a shovel and begin to shovel dirt into the well. At first, the donkey realized what was happening and cried horribly. Then, to everyone's amazement he quieted down. A few shovel loads later, the farmer finally looked down the well and was astonished at what he saw. With every shovel of dirt that fell on his back, the donkey was doing some thing amazing. He would shake it off and take a step up. As the farmer's neighbors continued to shovel dirt on top of the animal, he would shake it off and take a step up. Pretty soon, everyone was amazed as the donkey stepped up over the edge of the well and totted off ! Life is going to shovel dirt on you, all kinds of dirt. The trick is too not to get bogged down by it. We can get out of the deepest wells by not stopping. And by never giving up! Shake it off and take a step up !”
LESSON 10
“Never change: your core values."“Never change: your core values."
In spite of all the change around you, decide upon what you will never change: your core values. Take your time to decide what they are but once you do, do not compromise on them for any reason. Integrity is one such value.
LESSON 11
“We must remember that succeeding in a changing world is beyond just surviving.”changing world is beyond just surviving.”
It is our responsibility to create and contribute something to the world that has given us so much. We must remember that many have contributed to our success, including our parents and others from our society. All of us have a responsibility to utilize our potential for making our nation a better place for others, who may not be as well endowed as us, or as fortunate in having the opportunities that we have got. Let us do our bit, because doing one good deed can have multiple benefits not only for us but also for many others. Let me end my talk with a small story I came across some time back, which illustrates this very well.
Story
“This is a story of a poor Scottish farmer whose name was Fleming. One day, while trying to make a living for his family, he heard a cry for help coming from a nearby dog. He dropped his tools and ran to the dog. There, mired to his waist in black muck, was a terrified boy, screaming and struggling to free himself. Farmer Fleming saved the boy from what could have been a slow and terrifying death. The next day, a fancy carriage pulled up to the Scotsman's sparse surroundings. An elegantly dressed nobleman stepped out and introduced himself as the father of the boy Farmer Fleming had saved. "I want to repay you“ said the nobleman. " Yes," the farmer replied proudly. "I'll make you a deal. Let me take your son and give him a good education. If he's anything like his father, he'll grow to a man you can be proud of you." And that he did. In time, Farmer Fleming's son graduated from St.Mary's Hospital Medical School in London, and went on to become known through-out the world as the noted Sir Alexander Fleming, the discoverer of Penicillin. Years afterward, the Nobleman's son was stricken with pneumonia. What saved him? Penicillin. This is not the end. The nobleman's son also made a great contribution to society. For the nobleman was non other than Lord Randolph Churchill. and his son's name was Winston Churchill. Let us use all our talent, competence and energy for creating peace and happiness for the nation.”
“Change is the Only thing that“Change is the Only thing that will Never change. So betterwill Never change. So better adapt to it."adapt to it."
“Change is Universal…
Change is Permanent….
Be ever willing to Change…..
For, change alone leads you to success and happiness!!!”
“If one desires a change, one must be that change before that change can take place”
The procedure for checking the expiry of LPG cylinders is as stated below: (a) On one of three side stems of the cylinder, the expiry date is coded alpha numerically as follows A or B or C or D and some two digit number following this e.g. D06. The alphabets stand for quarters - (i) A for March (First Qtr) (ii) B for June (Second Qtr) (iii) C for Sept (Third Qtr) (iv) D for December (Fourth Qtr (b) The digits stand for the year till it is valid. Hence D06 would mean December qtr of 2006 and D12 means that the cylinder can be used until Dec 2012.
Ans : National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch.
Q. 2. Are all bank branches in the system part of the funds transfer network?
Ans : No. As on December 31, 52427 branches of 89 banks are participating. Steps are being taken to widen the coverage both in terms of banks and branches.
Q.3. Whether the system is centre specific or has any geographical restriction?
Ans : No, there is no restriction of centres or of any geographical area inside the country. The system uses the concept of centralised accounting system and the bank's account, that are sending or receiving the funds transfer instructions, gets operated at one centre, viz, Mumbai only. The individual branches participating in NEFT could be located anywhere across the country, as detailed in the list provided on our website.
Q.4. What is the funds availability schedule for the beneficiary?
Ans : The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.
Q.5. How does the NEFT system operate?
Step-1: The remitter fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch, beneficiary's name, account type and account number) and authorises the branch to remit the specified amount to the beneficiary by raising a debit to the remitter's account. (This can also be done by using net banking services offered by some of the banks.)
Step-2: The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message and sends it to its Service Centre for NEFT.
Step-3: The Service Centre forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays
Step-4: The RBI at the clearing centre sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.
Step-5: The receiving banks process the remittance messages received from RBI and effect the credit to the beneficiaries' accounts.
Q.6. How is this NEFT System an improvement over the existing RBI-EFT System?
Ans : The RBI-EFT system is confined to the 15 centres where RBI is providing the facility, where as there is no such restriction in NEFT as it is based on the centralised concept. The detailed list of branches of various banks participating in NEFT system is available on our website. The system also uses the state-of-the-art technology for the communication, security etc, and thereby offers better customer service.
Q.7. How is it different from RTGS and EFT?
Ans : NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on Net settlement, unlike RTGS that works on gross settlement and EFT which is restricted to the fifteen centers only where RBI offices are located.
Q.8. Any limit on the amount of individual transaction?
Ans : There is no value limit for individual transactions.
Q.9. What about Processing Charges/Service Charges
Ans : While RBI has waived the processing charges till March 31, 2009. With a view to rationalize the service charges levied by banks for offering various electronic products, a broad framework has been mandated as under: –
a) Inward transactions – Free, no charge to be levied b) Outward transactions – Upto Rs. 1 lakh - not exceeding Rs.5 per transaction. Rs. 1 lakh and above – not exceeding Rs. 25 per transaction.
Q.10. How will I know which are the branches participating in the NEFT?
Ans : RBI publishes the list of bank branches participating in the NEFT on its website i.e. https://www.rbi.org.in/scripts/neft.aspx
Q.11. What is IFS Code (IFSC)? How it is different from MICR code?
Ans : Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch. The MICR code has 9 digits to identify the bank-branch.
Q.12. How I will know, what is the IFS Code of my bank-branch?
Ans : RBI had since advised all the banks to print IFSC on cheques leaves issued to their customers. You may also contact your bank-branch and get the IFS Code of that branch.
Q.13. Whom I can contact, in case of non-credit or delay in credit to the beneficiary account?
Ans : Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted on nefthelpdeskncc@rbi.org.in or write to -
The General Manager, Reserve Bank of India, National Clearing Centre First Floor, Free Press House Nariman Point Mumbai – 400 027
Q.14. Is it necessary to have a bank account to originate the NEFT transaction?
Ans : Yes, NEFT is an account to account funds transfer system.
Q.15. Is it necessary that the beneficiary should have an account at the destination bank-branch?
Ans : Yes, NEFT is an account to account funds transfer system.
Q.16. Can I receive foreign remittances through NEFT?
Ans : This system can be used only for remitting Indian Rupee among the participating banks within the country.
Q.17. Can I send remittances abroad using the NEFT?
Ans : No
Q.18. Can I originate a transaction to receive funds from another account?
Ans : No
Q.19. Can I send/receive funds from/to NRI accounts?
Ans : Yes, subject to applicability of provisions of FEMA
Q.20. Would the customer receive an acknowledgement of money credited to the beneficiary?
Ans : No, however electronic acknowledgement is generated for the customer that his money is received by the beneficiary at the sender branch.
Q.21. Would the remitting customer get back the money if it is not credited to the beneficiary’s account?
Ans : Yes, the remitting customer gets back the money if it is not credited to the beneficiary account.
Q.22. Till what time NEFT service window is available?
Ans : There are six settlements at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays.
Q.23. What is the essential information that the remitting customer would have to furnish for the remittance to be effected?
Ans : The essential information that the remitting customer has to furnish is:
* Beneficiary details such as beneficiary name and account number * Name and IFSC of the beneficiary bank branch.
Q.24. Is there any way a remitting customer can track the remittance transaction?
Ans : The remitting customer can track the remitting transaction through the remitting branch only, as the remitting branch is informed about the status of the remitted transactions.
RBI (Note Refund) Rules, 1975 (as amended up to 1980).
The important operative provisions in the RBI Act 1934 and the RBI (Note Refund) Rules are as under:
Provisions in the Reserve Bank of India Act, 1934:
Section 28: Notwithstanding anything contained in any enactment or rule of law to the contrary, no person shall of right be entitled to recover from the Central Government or the Bank, the value of any lost, stolen, mutilated or imperfect currency note, provided that the Bank may, with the previous sanction of the Central Government, prescribe the circumstances in and the conditions and limitations subject to which the value of such currency notes or bank notes may be refunded as of grace and the rules made under this proviso shall be laid on the table of Parliament.
Section 58:
(1): The Central Board may, with the previous sanction of the Central Government, by notification in the Official Gazette, make regulations consistent with this Act to provide for all matters for which provision is necessary or convenient for the purpose of giving effect to the provisions of this Act.
(2): In particular and without prejudice to the generality of the foregoing provisions, such regulations may provide for all or any of the following matters, viz.-
(a)……….
(b)……….
(c)……….
……………..
(q)the circumstances in which, and the conditions and limitations subject to which the value of any lost, stolen, mutilated or imperfect currency note of the Government of India or bank note may be refunded.
Provisions in the RBI (Note Refund) Rules:
In exercise of the powers conferred by the proviso to Section 28 of the Reserve Bank of India Act, 1934 (2 of 1934), read with clause (q) of the sub-section (2) and sub-section (1) of Section 58 of the said Act, the Central Board of Directors of the Reserve Bank of India, with the previous sanction of the Central Government hereby makes the following rules prescribing the circumstances in and the conditions and limitations subject to which, the value of lost, imperfect or mutilated notes may be refunded as a matter of grace.
Given below are the important provisions of the RBI (Note Refund) Rules, for the benefit of the members of the public.
Rule 2:Definitions:
In these rules,
(a)‘Bank’ means the Reserve Bank of India constituted by the Reserve Bank of India Act, 1934.
(b)‘Bank note’ means any note issued by the Bank, but does not include a Government note.
(ba) ‘Essential features’ means the features which are necessary for the identification of a note, namely:-
(i)the name of the issuing authority in Hindi or English, that is, Reserve Bank of India or Government of India, as the case may be;
(ii)the guarantee clause in Hindi or in English;
(iii)the promise clause in Hindi or in English;
(iv)the signature in Hindi or in English;
(v)the Ashoka Pillar emblem or the Mahatma Gandhi portrait, as the case may be;
(vi)the water mark of the Ashoka Pillar emblem or the Mahatma Gandhi portrait, as the case may be.
Explanation: The essential features of a note have been enumerated with a view to making the application of Rule 9 easier. The definition should be read with Rules 9(1)(a) and 9(2)(a). If any one of the Hindi or the English versions of an essential features is slightly damaged, but the other version is intact, the essential feature in question shall be deemed to be available on the note. In the case of the water-mark, minor damage should be ignored and in applying the Rules, if a major portion of the water-mark is identifiable, the water-mark may be treated as being available.
(d) ‘Half note’ means either portion of a note, which has been divided through or near the centre into two pieces, either vertically, that is to say, along a line parallel or nearly parallel to the width of the note or horizontally, that is to say, along a line parallel or nearly parallel to the length of note, provided that such portion is itself in one piece.
Explanation: In case of doubt where the mutilation caused to the note is irregular, area of a mutilated piece (note) should be measured by using a transparent plastic sheet on which square centimetres are etched. The plastic sheet should be placed on the note and number of squares counted to obtain the area of the piece. For the purpose of arriving at the total area, half the number of incomplete squares should be added to the number of complete squares. The dimensions of the current design notes are the following:
Denomination
Length (cm)
Width (cm)
No. of squares (cm2)
1
9.7
6.3
61
2
10.7
6.3
67
5
11.7
6.3
74
10
13.7
6.3
86
20
14.7
6.3
93
50
14.7
7.3
107
100
15.7
7.3
115
500
16.7
7.3
122
1000
17.7
7.3
129
(e) ‘Half the area’ means an area, which represents fifty percent of the total area of a note, including non-printed potions thereof;
(f) ‘Imperfect note’ means any note, which is wholly, or partially obliterated, altered or undecipherable but does not include a mutilated note;
(fa) ‘Major portion of the number’ means the prefix and any three digits of the number or, where the prefix is not identifiable, any four digits of the number;
Explanation:
(i) This definition should be read with Rules 9(1) (c), 9(2)(b), 9(2)(c) and 9(3);
It should be noted that the entire prefix is treated as one unit.
(ii) Sometimes, a portion of a digit or letter of the alphabet may be missing. In such cases, if the visible portion can be identified with definiteness as belonging to a particular digit or letter to the exclusion of other digits/letters, the digit or letter may be treated as available.
Example: (5), (7), (3)
(g) ‘Mutilated note’ means a note of which a portion is missing or which is composed of pieces;
Explanation: Note in two pieces having number(s) intact is now classified as a soiled note.
(i) ‘Number’ means the complete serial number of the note, namely the letters and numerals of the prefix and digits following the prefix;
(j) ‘Prescribed Officer’ means the officer in charge of the Issue Department at any Office or branch of the Bank or any other person designated by the Bank in this behalf.
Explanation:
The prescribed officer is the officer who has been authorised to pass or reject the mutilated notes under the Note Refund Rules.
Rule 3: Presentation and disposal of claims
1)A claim in respect of any note may be presented to the Issue Department of any office or of any branch of the Bank.
Note: Reserve Bank of India has also authorised public sector bank branches and designated branches of other banks having currency chests (list available on websites of Regional Offices of the Bank) to accept and exchange mutilated notes under these Rules.
Rule 4:Right to call for information or to hold enquiries
The prescribed officers either at the designated commercial bank branches or the Reserve Bank of India dealing with a claim may, if it is considered necessary so to do, call for any information or hold any inquiry relating to any claim presented under these rules.
Rule 5: General provisions in relation to all claims
(1)A claim in respect of a note, which is alleged to have been stolen, shall not be entertained.
Note: If a prescribed officer is satisfied that a mutilated note presented to him is one which appears to have been cancelled at any office of the RBI or claim on which appears to have already been paid under these Rules, he may reject the claim on such note after making enquiries under Rule 4 above.
(2)A claim in respect of a note -
i)which cannot be identified with certainty by theprescribed officeras agenuine note for which the Bank is liable under the Reserve Bank of India Act; or
ii)which in the opinion of the prescribed officerhas been made imperfect or has been mutilated, with a view to making it appear to be of a higher denomination, or has been deliberately cut, torn, defaced, altered or dealt with in any other manner, not necessarily by the claimants, with a view to establishing a false claim under these rules orotherwise to defraud the Bank or the public, or
Explanation: This rule is used in cases where a deliberate intention appears, but the note/s cannot be rejected under any other rule of these Rules. Hand-printed portions joined with parts of genuine notes are rejected under Rule 5(2)(ii).
ii)which carries any extrinsic words or visible representations intended to convey or capable of conveying any message of a political character, or
iii)which has been imported into India by the claimant from any place outside India,Bhutan and Nepal in contravention of the provision of any law, or
iv)in respectof which the value is payable not by the Bank but by some other authority, or
v)in relation to which any information, which is called for by the prescribed officer or the Bank as the case may be, is not furnished by a claimantwithin a period of three months from the date of receipt of the notice or letterasking for theinformation, shall be rejected.
Rule 7:Imperfect notes
The value of an imperfect note of a denomination of one thousand rupees or less may be paid, if
a)the matter, which is printed on the note, including the number or numbers, has notbecome totally undecipherable, and
b)the prescribed officer is satisfied, having regard to theprinted matter which is decipherable on the note, that it is a genuine note.
Explanation: This rule refers to notes which are entire (i.e. not mutilated) but are wholly or partially obliterated. The guiding principle is that the notes should be established as being genuine Indian currency notes. In some cases, numbers of the notes may not be traceable. Payablity of such notes is decided on the basis of other printed matter available on the note including the watermark which is generally available even on washed notes.
Rules 9: Mutilated bank notes:
(1)The value of a mutilated bank note of a denomination of one thousand rupees or less, on which the number is printed at one place only may be paid, if-
a) the note presented is in not more than two pieces and of whichno essential feature is missing and the complete number can also be identified in an undivided area on one of the pieces; or
b)the piece, or one of the pieces presented, has an undivided area which is not less than half the area of the note and the complete number can also be identified in an undivided area on such piece; or
c)the note presented is in pieces none of which may even comprise halfthe area of the note, but all the pieces presented can be identified as belonging to the same note and all the pieces taken together have an area which is not less than half the area of the note and a major portion of the number can also be identified in an undivided area on one of the pieces.
Explanation: Rule 9 (1) applies to the single numbered notes i.e. notes of Re.1, Rs.2 and Rs.5 denominations. The conditions to be satisfied for payment of notes under this Rule are as under:
S. No.
9(1)(a)
9(1)(b)
9(1)(c)
1.
Note is in one or two pieces.
Note is in one piece or in more than one piece.
Note is in pieces.
2.
All essential features are present (even if partially).
Complete undivided number is available on one piece.
Major portion of the number is available in an undivided area on one of the pieces.
3.
Complete undivided number is available on one piece.
The piece on which full number is available is not less than half the area of the note.
All the pieces belong to the same note.
The sub-rules are applied to a mutilated note one after another to see whether the claim on it is payable under any of them i.e. if a particular note is not payable, say, under sub-rule 9(a), the possibility of its being payable under sub-rule (b) is examined, and if it is not payable even under sub-rule (b), the possibility of its being payable under sub-rule (c) is examined.
(i)If only one piece is presented and it is of an area less than half the area of a note, claim is rejected (cf. Rule 9(1) (b)).
(ii)If a note is in pieces and major portion of the number is not identifiable in an undivided area on one of the pieces, claim is rejected {cf. Rule 9(1) (c)).
(iii)If a note is in pieces none of which is more than half the area of the note and the pieces presented cannot be identified as belonging to the same note, claim is rejected {cf. Rule 9(1) (c)).
(iv)If a note is in pieces and the pieces can be identified as belonging to the same note, but the pieces presented together form an area less than half the area of the note, claim is rejected cf. {Rule 9(1)(c)).
2)The value of a mutilated bank note of a denomination of one thousand
rupees or less, on which the number is printed at two places may be paid, if
(a) the note presentedis in not more than two piecesand of which no essential feature is missing and both the pieces can be identified as belonging to the same note and thecomplete number can be identified in an undivided area at each ofthe twopiecesat which it is printed; or
b) the piece, or one of the piecespresented, has an undivided areawhich is not less than three-fourths the area of the note and a majorportion ofthe number can be identified on such piece in an undivided area at each of the two places at which it isprinted; or
c) the note presented is in pieces none of which may even comprise half the area of the note but all the pieces presented can be identified as belonging to the same note and all the pieces taken together have an area which is not less than half the area of the note and a major portion of the number can also be identified in an undivided area at each of the two places at which it is printed.
Explanation: Rule 9 (2) applies to the double numbered notes i.e. notes in the denominations of Rs. 10 and above. The conditions to be satisfied for payment of notes under this Rule are as under:
S. No.
9(2)(a)
9(2)(b)
9(2)(c)
1.
Note is in one or two pieces.
Note is in one piece or in more than one piece.
Note is in pieces.
2.
All essential features are present (even if partially).
Major portion of the number is available at the both the places on one undivided piece.
All the pieces belong to the same note.
3.
Complete undivided number is available at both places on the same piece or on the two pieces.
This piece is not less than three-fourth the area of the note.
Major portion of the number is available in an undivided area at both the places (even if in two separate pieces).
4.
Both the pieces belong to the same note.
-
All the pieces taken together form not less than half the area of the note.
The sub-rules are applied to the note one after another to see whether the claim on the note is payable for full value under any of them i.e. if a particular note is not payable, say under sub-rule (a), the possibility of it being payable under sub-rule (b) is examined, and if it is not payable even under sub-rule (b), the possibility of it being payable under sub-rule (c) is examined. If a note is not found payable for full value under any of these sub-rules, only then it is examined to see whether it is payable for half value under Rule 9 (3).
(i) If on a note, the number at both places is available on one piece measuring not less than three-fourth the area of the note, but the number is not the major portion of the number at both places; the claim is rejected (cf. Rule 9(2) (b)). If on the other hand, the number is the major portion at one of the two places, half value is paid under Rule 9(3).
(ii) If a note is in pieces and together the pieces form an area more than half the area of the note, but the pieces cannot be identified as belonging to the same note, claim is rejected (Rule 9(2)(c)).
(iii) If a note is in pieces and the pieces can be identified as belonging to thesame note, but the pieces presented together form an area less than half the area of a note, claim is rejected (Rule 9(2)(c)).
3)Half the face value of a mutilated bank note of a denomination of one thousand rupees or less on which the number is printed at two places may bepaid, if, the piece, or one of the piecespresented, has an undivided area which is not less thanhalf the area of the note and a major portion of the number can also be identified on such piece atleast at oneof the places at which it is printed.
Explanation: This rule applies to double-numbered notes i.e. notes in the denominations of Rs. 10 and above. The conditions to be satisfied for payment of half value on such notes are as under:
i)The piece or one of the pieces presented has an undivided area, not less than half the area of the note and
ii)Major portion of the number (i.e. one of the two numbers) is available on such piece.
If one of the pieces qualifies for payment of half value, the other piece or pieces even if not belonging to the same note, are ignored.
A note is considered for payment of half value only when full value is not found payable on it under Rule 9(2).
4) A claim for the full value of a mutilated bank note of a denomination of one thousand rupees or less on which the number isprinted at two places shall, if the note as presented has been formed by joining a half note of another note, be dealt with under sub-rule (3) as if there were separate claims in respect of each of the two half notes.
Explanation: This rule is a corollary to Rule 9 (3) and is also applicable only to double-numbered notes. Each of the two, either vertically or horizontally divided half notes is treated as independent notes and claim dealt with under Rule 9(3).
(i)The number is the sole feature that is used for distinguishing one note from another. Hence the emphasis is on the number or its major portion.
(ii)If the major portion of the number of a double-numbered note is available at both places on one undivided area measuring at least ¾th the area of the note, the claim is paid ignoring the remaining portion of the note, whether presented or not (Rule 9(2)(b)).
Rule 20: Claimants to be bound by rules
1)For the removal of doubts, it is hereby declared that any payment which is provided for under these rules shall be made only as of grace and that the Bank may from time to time issue for the guidance of the prescribed officers such supplementary or detailed instructions for carrying out the provisions of these rules as it may deem fit.
2)Any person who makes any claim on account of an imperfect or mutilated note shall be deemed to have made the said claim under the proviso to Section 28 of the Reserve Bank of India Act and subject to the provisions of these rules, which shall be deemed to be binding on all claimants and their heirs or assigns.
Rule 21:Decision of the prescribed officer or the Bank
If any question arises whether a note or any portion presented is an imperfect or mutilated note or is divided vertically or horizontally through or near the centre or has clearly more than half the area of a whole note or is a half note or whether all the pieces of a note or a portion thereof as presented belong or belongs to the same note, or whether a note is payable under any of the provisions of these rules, the prescribed officer or the Bank shall be entitled to determine the question, having regard to the provisions in the foregoing rules and the condition of the note, and a note shall not be payable unless the conditions specified in these rules have been clearly satisfied in the opinion of the prescribedofficer or the Bank.
The decision of the prescribed officer or the Bank in regard to any claim under these rules shall be final and no appeal from the said decision shall lie to any other officer or authority.
Rule 22: Retention and destruction of notes
(2)Any note presented in connection with a claim under these rules shall, whatever be the denomination of the note or the prescribed officer’s decision on the claim, be retained by the Bank and destroyed or otherwise disposed of -
a)in the case of a note in respect of which any payment is made, at any time after the payment, and
b)in the case of a note in respect of which no payment is made, on the expiry of a period of three months from the date of the decision rejecting the claim.
For further details or any clarifications, please contact helpdcm@rbi.org.in or The Chief General Manager, Department of Currency Management, Reserve Bank of India, Central Office, 21st Floor, Post Box No. 1379, Shahid Bhagat Singh Marg, Mumbai – 400 001.
(5), 
(7), 