Currency notes often get torn or damaged during daily use or due to moisture. Many shopkeepers refuse to accept such notes.
As a result, people either store them away or throw them. But you don’t need to do this. The Reserve Bank of India (RBI) has clear rules that allow you to easily exchange damaged notes.
Exchange of Soiled or Dirty Notes
Notes that are dirty or slightly torn are called soiled notes. These can be exchanged at any bank branch. You don’t need to have an account in that bank.
If the note is in fairly good condition, the bank will either give you a new note on the spot or deposit the amount into your account.
Special Rules for Mutilated Notes
If the note is torn, missing parts, or badly damaged but important features like the serial number or watermark are still visible, it is treated as a mutilated note.
You can submit such notes at authorized bank branches. The bank will examine them and pay you fully or partially, depending on the note’s condition, under the RBI’s Note Refund Rules.
What to Do with Severely Damaged Notes
Notes that are burnt, stuck together, or totally destroyed cannot be exchanged at regular bank branches.
These must be sent to RBI’s Issue Offices, where they are checked in detail. After assessment, the RBI may provide compensation.
Steps to Exchange Notes at Banks
You can deposit soiled or mutilated notes at any commercial bank, even if you’re not a customer there.
The bank will examine the note and follow RBI guidelines for replacement. If the note qualifies, you’ll be given a new note of the same value.
How Many Notes Can Be Exchanged at Once?
RBI rules allow you to exchange up to 20 notes at a time, with a total value not exceeding ₹5,000. The bank will give you the money right away.
If the value is above ₹5,000, the bank may credit the amount to your account instead. For exchanges above ₹50,000, more time may be required.
Important Points to Keep in Mind
Don’t tape or staple torn notes. Submit them as they are.
No fee is charged for exchanging ₹1 to ₹20 notes.
For ₹50 to ₹500 damaged notes, a small fee may apply.
Banks cannot refuse to exchange soiled notes, as per RBI rules.
If a bank refuses, you can file a complaint against it.
If you have torn, dirty, or damaged notes, there’s no need to keep or throw them away.
You can easily get them replaced by following the RBI’s approved procedure. Just make sure not to alter the note’s condition before submitting it.
