Any bank found issuing or accepting note packets in stapled condition will be liable to be penalised under the existing provisions of Banking Regulation Act, 1949, Reserve bank of India said on Thursday.

RBI had last year issued a directive under Section 35A of the Banking Regulation Act to all commercial, regional, rural and local area banks instructing them to do away with staple of note packets and to secure them with paper bands, a central bank statement said in Mumbai.

RBI had also asked banks to issue only clean notes to the general public and to stop writing on the watermark of notes.

The central bank had received complaints that some banks/branches continued to accept or issue notes in stapled condition.