What are banknotes with ‘star’ symbols? Are they legal?

The Reserve Bank of India has clarified that banknotes with star symbols are legal tender. This comes after messages on social media that claimed that currency notes with an asterisk or star mark in the number panel are fake. But what did the RBI say? And what are these ‘star’ banknotes exactly? Let’s take a closer look: What did the RBI say? The RBI on Thursday said that the symbol is an identifier that it is a replaced/reprinted banknote. The symbol is inserted in the number panel of a banknote that is used as replacement for defectively printed notes in a packet of 100 pieces of serially numbered banknotes. In a statement, the central bank said it has come to the notice of the RBI that the validity of banknotes with this symbol present on the number panel has recently been the subject of discussions on some social media platforms. “A banknote with a star (*) symbol is identical to any other legal banknote, except that in the number panel a star (*) symbol is added between the prefix and the serial number,” it said. The RBI tweeted:

Reserve Bank of India clarifies on Star Series Banknoteshttps://t.co/BFBYLbH8Ao

— ReserveBankOfIndia (@RBI) July 27, 2023

What are they? According to a press release from the RBI, ‘star’ banknotes in the ₹ 500 denomination were issued for the first time in 2016.

This came after ‘star’ banknotes in the denomination of ₹ 10, 20, 50 and 100 were already in circulation.

The RBI in 2006 laid out its rationale for introducing ‘star’ banknotes: “In a serially numbered packet, banknotes with any defect, detected at the printing stage, are replaced at the note printing presses by banknotes having the same number so that the sequence of the packet is maintained. As a part of the Bank’s ongoing efforts to benchmark its procedures against international best practices as also for cost-effectiveness at printing presses, it is proposed to adopt the STAR series numbering system for replacement of the defectively printed banknotes,” “The Star series notes, to begin with, will be issued in lower denominations, that is, Rs.10, Rs.20 and Rs.50. The Star series notes will look exactly like the existing notes of Rs.10, Rs.20 and Rs.50 in the Mahatma Gandhi series but will have an additional character viz. a *(star) in the number panel. Packets with star series notes will have 100 pieces as usual but not in serial order. The Star series notes will be legal tender and members of public may freely accept and use these notes.” “Consequently, some fresh banknote packets issued by the Bank may contain some notes having a *(star) in the number panel in the space between the prefix and the number. The packet will contain 100 banknotes, as hitherto. The number e.g. may be 4CC*456987. To facilitate easy identification of note packets containing star series notes, the bands on such packets will clearly indicate the presence of these notes in the packet.” “All ₹ 500 banknotes in the Mahatma Gandhi (New) Series, issued from 8 November, 2016 onwards, will continue to be legal tender,” the RBI added. With inputs from agencies