Section 27 - Re-issue of notes, Section 28 - Recovery of notes lost, stolen, mutilated or imperfect: RBI Act 1934

What is Re-issue of notes? What is the meaning of Recovery of notes lost, stolen, mutilated or imperfect? Section 27 and 28 of Reserve Bank of India Act 1934

 

 

Section 27 of RBI Act 1934 : "Re-issue of notes"

The Bank shall not re-issue bank notes which are torn, defaced or excessively spoiled.

 

Section 28 of RBI Act 1934: "Recovery of notes lost, stolen, mutilated or imperfect"

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 of the Government of India, or bank 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.