How do exchange damaged currency notes? Can banks reject torn notes? What are the RBI rules for cut notes?
Do you have torn currency notes and coloured currency notes at home? However, don't think that they are useless. Such notes can be exchanged at any bank branch or Reserve Bank of India (RBI) branch provided they are not counterfeit.
However, notes with religious or political slogans cannot be exchanged. Also, there is no facility to exchange torn notes in Co-operative Bank branches and Regional Rural Banks (RRB).
Soiled currency notes exchange mean?
A note that has become soiled due to continuous use, a two-piece taped currency note with key features intact, is considered a defaced note. Note discoloration, perforation, yellowing, wear and tear can cause the note to become dirty and crumpled. RBI guidelines state that all such currency notes come under the list of counterfeit notes.
Exchange of mutilated currency notes
A note with one part missing or torn into two pieces is considered a torn currency notes. Mutilated notes can be presented at any bank branches. The notes so issued will be accepted as per RBI (Note Refund) Amendment Rules, 2018.
What is imperfect currency notes
Any currency note which is fully or partially, frayed, shrunk, stained, altered or incomplete is considered to be a imperfect currency note. However, it should not come under the ambit of mutilated note.
A currency note that is non-counterfeit, clean, verifiable and suitable for reuse is considered a fit currency note. Currency notes that are not fit for reuse or canceled by RBI are called Unfit Note.
Will the bank exchange damaged notes - If banks reject these notes, what next?
As per RBI (Note Refund) Rules 2009, no bank can not refuse to exchange or refund currency notes that are torn, mutilated, taped. In case of rejection, users can complain online. The RBI has the power to take action against the bank concerned with a fine of up to Rs.10,000.
RBI conditions for exchange of notes
How much to pay for a note exchange is determined based on the face value of the notes, their intact features or labels. For example, if a Rs.2,000 note with an area of 109.56 sq.cm is taken, a Rs.2,000 note with an area of 44 sq.cm will get a refund of Rs.1000. The same 88 square cm note can be exchanged for full value. Similarly, a crumpled Rs.200 bank note gives a total value of 78 square cm. 100 will be paid for the same 39 square cm note.
Currency notes that are too fragile or burnt, mutilated, unable to be pasted will not be accommodated at bank branches. For that one has to go to RBI issuing office.
Deliberately torn, mutilated, altered or tampered banknotes will be rejected. For such notes there will be no payment.
Are notes made of paper?
RBI regulations state that paper-like notes in India are manufactured using 100 percent cotton. Good quality cotton does not tear easily. Currency notes are made from a gelatin mixture of 75 percent cotton and 25 percent linen to make the notes last longer.
How can visually impaired people recognize notes?
Visually impaired people can identify the value of a note using an application called Money (MANI) (Mobile Aided Note Identifier). The app helps in identifying the denominations of bank notes by holding the note at different angles, in various light intensities (normal light/daylight/low light etc.), checking the front or back of the note, including notes folded in half. However, it is not clear whether the note is fake or genuine.
