How To Exchange Damaged Currency Notes? Here’s What RBI Says

Are you tired of asking every shopkeeper, seller, and other vendor to exchange your torn, mutilated note of Rs 10, 20, 100 or higher denomination? If yes, then there is no need to do so, instead visit your nearest PSU bank branch or contact RBI office to exchange your damaged currency notes.

The Reserve Bank of India has laid out a set of step-by-step instructions for people who are willing to exchange their damaged currency notes. Here are all the details, you need to know about exchanging damaged currency notes.

What Accounts To Damaged Currency Notes?

Damaged currency notes includes the notes which are soiled or mutilated. Soiled notes are those which have become dirty and slightly cut. Whereas, mutilated notes are the ones which are in pieces and/or of which the essential portions are missing can also be exchanged. Notes in the denomination of Rs.10 and above which are in two pieces, are also treated as soiled note

How To Exchange Soiled Indian Currency Notes?

As per RBI's official website, people can exchange soiled notes at the counters of any public sector bank branch. If you are not able to visit any public sector bank's branch, then you can exchange notes at any currency chest branch of a private sector bank. As per RBI website, people don't have to fill any form for exchanging soiled Indian currency notes of lower denomination.

People can also exchange mutilated Indian currency notes. As mutilated notes may carry stains, are torn-out and certain pieces of them must be missing, their refund value is decided by the RBI based on RBI (Note Refund) Rules.

Essential portions in a currency note are name of issuing authority, guarantee, promise clause, signature, Ashoka Pillar emblem/portrait of Mahatma Gandhi, water mark.

To exchange these notes, people are required to visit their nearest public sector bank branch. They are required to enquire about the same at the bank's counters. They can also visit any currency chest branch of a private sector bank or any issue office of the RBI.

As per the RBI website, it is mandatory for public sector bank branches to accept soiled, mutilated, or imperfect notes for exchange. However, if a note is extremely brittle, burnt, charred, or inseparably stuck together, it cannot be exchanged at bank branches. Such notes should be submitted to the nearest RBI issue office as per the guidelines on the central bank's website.

Banknotes with scribbles or stains are still legal tender but are deemed unfit for circulation. These can be deposited or exchanged at any bank branch without any issues. The RBI does not buy or sell old banknotes and warns the public to be cautious of frauds involving individuals pretending to be RBI employees.

Banks have been directed by the RBI to accept defective notes for exchange on all working days. Small Finance Banks and Payment Banks can exchange mutilated and imperfect notes within two years of starting their operations.

If a note is too damaged to handle, it should be taken to the nearest RBI Issue Office instead of a bank branch. When exchanging soiled notes at a bank branch, you can tender up to 20 pieces with a maximum value of Rs 5,000 per day. If you have more than 20 pieces or if their value exceeds Rs 5,000 in a day, the branch may accept them against receipt and credit them later. Service charges may apply in such cases.