STAR (*) SYMBOL BANKNOTES (Syllabus: GS Paper 3 - Economy)

Context: The Reserve Bank of India (RBI) issued a clarification regarding the validity and status of banknotes featuring a star (*) symbol on the number panel. 

Key Points

• Fresh banknotes issued by the RBI till August 2006 were serially numbered. 
• Each of these banknote bears a distinctive serial number along with a prefix consisting of numerals and letter/s. The banknotes are issued in packets containing 100 pieces.
• The RBI adopted the “STAR series” numbering system for replacement of defectively printed banknote in a packet of 100 pieces of serially numbered banknotes.
• The Star (*) symbol is inserted in the number panel of a banknote that is used as replacement for defectively printed banknotes in a packet of 100 pieces of serially numbered banknotes. 
• A banknote with a Star (*) symbol is identical to any other legal banknote, except that in the number panel a Star (*) is added between the prefix and the serial number. 
• The Star (*) symbol is an identifier that it is a replaced/ reprinted banknote.