New Delhi: If you somehow end up with a soiled or mutilated currency note which is not acceptable by shopkeepers, fret not as you can easily exchange them free of cost. It may be noted that mutilated notes as they can be easily exchanged at a bank. In fact, you do not even have to be a customer of that bank to exchange the notes.
Irrespective of its condition, currency notes command the value written on the note. According to Reserve Bank of India RBI (Note Refund) Rules, all bank branches are required to have a display board indicating the availability of notes and coins exchange facility for information of the general public.
Here’s everything you need to know to get soiled, mutilated notes exchanged free of cost:
Soiled notes: A soiled note is a note that gets dirty over a period of time. It also includes notes that have their pieces pasted together using any adhesive or tape. As per RBI guidelines, these notes should be accepted at bank counters while paying government dues like taxes, utility bills and so on. You can request the bank to credit the amount in your bank account. Note that you typically get the full amount during the exchange.
Mutilated notes: A note is considered mutilated if a portion is missing or if it is torn in more than two pieces. According to the exchange rules, for notes valued between Rs 1 and Rs 20, you can get the full value in exchange if you have at least 50% of the surface are of the note. If it is less than 50%, you will not get anything.
For all notes above Rs 20 denomination, the full value would be refunded if the area of the single largest undivided piece of the note is over 80% in size. However, if it is 40-80%, half the value will be payable. You will not get any exchange value if the piece of note is less than 40% in size.
Burnt or stuck together notes: Notes that have turned extremely brittle or are badly burnt, charred or inseparably stuck together are not accepted by the bank. However, such notes can be exchanged at the issue offices of RBI. Issue offices are typically the bank’s regional offices.
New MG series notes: According to amended rules, the single largest piece of a mutilated or torn Rs 2,000 note must have a minimum undivided area of 88 per cent of the note’s original dimension for a full refund and at least 44 per cent for getting half the value back. In case of the Rs 200 note, the single largest piece or undamaged area should be 78 per cent of the original note for the full refund and around 39 per cent for half refund.
If a person wants to exchange mutilated new Mahatma Gandhi series Rs 100 note, the full value will be refunded only if the single largest piece is at least 75 per cent of the original size, 38 per cent of the original size is required for half refund. For a mutilated new Rs 50 note, the single largest piece has to be 72 per cent of the original surface area of the note is must for the full refund, and 36 per cent for half refund of the value.
It is worth mentioning that in certain conditions, a bank can also deny the facility or charge for it. If the number of notes presented is up to 20 pieces with a maximum value of Rs 5,000 per day, banks should exchange them for free. However, if it is over 20 pieces or Rs 5,000 in value in a day, banks may accept them against receipt for value to be credited later. In such cases, a service charge may also be levied.
Any currency note that has a message of any political nature ceases to be a legal tender and the claim on such a note will get rejected. Notes which are disfigured may also be rejected by the bank. Notes that are found to be deliberately cut, torn, altered or tampered with may also get rejected for exchange.