There has recently been significant uncertainty and controversy on social media about the authenticity of banknotes featuring a Star (*) symbol on the number panel. The Reserve Bank of India (RBI) has said that notes with the star (*) symbol are completely authorised money.
RBI said in a press release that “It has come to the notice of the Reserve Bank that the validity of banknotes with a Star (*) symbol present on the number panel has recently been the subject of discussions on some social media platforms”.
The Reserve Bank of India (RBI) has thrown light on the purpose and importance of the Star Series banknotes in order to clarify the situation. The Star (*) sign is an identifier included in the number panel of a banknote that is used to replace defectively produced banknotes in a packet of 100 serially numbered banknotes. This replacement approach was implemented to promote smooth money circulation by properly handling banknotes with printing defects.
Recognising that a banknote displaying the Star (*) sign has the same value and acceptability as any other legitimate banknote is essential. The main difference is that the Star (*) symbol is positioned between the prefix and the serial number in the number panel. This simple addition shows that the banknote has been changed or reproduced.
The RBI website has extensive information about the “Star Series” banknotes in the Indian Currency FAQs section (Question 9 of Section B). This website aims to clear up any misconceptions about the Star (*) sign-on banknotes by providing a complete overview of the replacement mechanism.
Prior to August 2006, new banknotes printed by the Reserve Bank of India were serially numbered, with each banknote bearing a unique serial number and a prefix of digits and letters. These banknotes were distributed in bundles of 100 pieces.
The introduction of the “STAR series” numbering scheme was a big step forward in the management of defectively produced banknotes. When a problem was detected in a package of 100 banknotes, the RBI instituted the practice of replacing only the faulty notes with Star Series banknotes rather than the entire packet. This strategy not only reduced public disturbance but also enabled more effective cash circulation.
In terms of value, design, and security measures, the Star Series banknotes are virtually comparable to other legal money. The extra character, the *(star), is only used to identify and distinguish replacement or reprinted banknotes from ordinary serially numbered banknotes.