The RBI Clean Note Policy was introduced to improve the quality of currency notes available to the public. The policy encourages banks to issue clean and good-quality notes to customers and to withdraw notes that have become excessively soiled, damaged, or unfit for circulation.

Currency notes naturally deteriorate because they are frequently handled and exchanged. Over time, they may become dirty, folded, torn, or worn. The Clean Note Policy provides a framework for managing such currency and replacing notes that are no longer suitable for circulation.