When Gujarat Govt Rejected Rs 30 RTI Fee Over 'Bad Notes', But Refund Proved Costlier

Last Updated:August 22, 2025, 14:04 IST

A Kalupur resident paid Rs 30 for an RTI but damaged notes led officials to spend Rs 44 returning them, sparking debate over wasteful government procedures

The man pointed to the Note Refund Rules, 2009, which clearly state that damaged or unusable notes should not be returned. (Image for representation: AI)

A bizarre case from Ahmedabad, Gujarat, has highlighted how bureaucratic procedures can sometimes cost the exchequer more than the actual amount involved. A resident of Kalupur, Pankaj Bhatt, paid Rs 30 as the application fee for seeking information under the Right to Information (RTI) Act. But since the currency notes he submitted were deemed unfit for official use, the government ended up spending Rs 44 just to return the money.

According to a report in the Times of India, Bhatt had filed his RTI application in March. He deposited a Rs 20 note and a Rs 10 note in cash. However, the Public Information Officer (PIO) of the Directorate of Information in Gandhinagar refused to accept them, declaring the notes unusable. The officer pointed out that the Rs 20 note was stuck with tape and the Rs 10 note was damaged, and therefore both were unsuitable for government records.

Instead of following Reserve Bank of India (RBI) rules on such notes, the Directorate decided to send them back. On August 1, the notes were placed in an envelope and dispatched to Bhatt through Registered Post Acknowledgement Due (RPAD). The postage included two Rs 20 stamps and one Rs 4 stamp, meaning the government spent Rs 44 on mailing charges, far exceeding the value of the notes themselves.

Bhatt has objected to this procedure, saying it contradicts RBI guidelines. He pointed to the Note Refund Rules, 2009, which clearly state that damaged or unusable notes should not be returned. Under Rule 11, such currency is to be retained by RBI offices and eventually destroyed or disposed of appropriately. Damaged notes are defined as those where more than half the portion is missing, or where authenticity cannot be verified.

“This method is against the rules of the Reserve Bank of India (RBI)," Bhatt said, questioning why the authorities ignored the prescribed process.

Calling the incident a waste of public resources, Bhatt stressed that government procedures need urgent simplification. “Spending Rs 44 to return a small amount of Rs 30 is beyond comprehension. This is not only a waste of money but also shows how much time and resources are spent on small tasks," he said.

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First Published:

August 22, 2025, 14:04 IST

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