It is common to receive torn, worn-out, or taped notes from ATMs or shopkeepers. Many shopkeepers refuse these notes, leaving you confused.
But there is no need to worry because the Reserve Bank of India (RBI) has clear rules for exchanging torn or damaged currency notes. If you know these rules, no bank can refuse to exchange your notes.
What to Do If You Have a Torn Note
If your note is torn or damaged, you can get it exchanged at any bank. RBI rules say that if the note’s serial number, signature, and other important features are visible, the bank must exchange it.
Rules for Exchanging Notes at Banks
Up to 20 notes or Rs 5,000: Banks will exchange these immediately without any fees.
More than 20 notes or above Rs 5,000: Banks will take your notes, give you a receipt, and after verification, deposit the amount in your account. Some banks may charge a service fee for this.
Which Notes Can Be Refused by Banks?
Severely torn, burnt, or glued/taped notes may be rejected.
Notes that appear fake will not be exchanged.
Highly tampered notes are also not accepted.
Can Non-Account Holders Exchange Notes?
Yes, you don’t need to have an account in the bank. Anyone can visit any bank to exchange torn or damaged notes.
If the Bank Refuses to Exchange Your Notes
First, speak to the branch manager and explain RBI’s rules. If unresolved, contact the bank’s customer care. You can also lodge a complaint on the RBI website or approach the nearest RBI office.
Definition of Bad Notes by RBI
Bad notes include torn, burnt, worn-out, or split notes. They are replaceable if their identifying features like serial number and governor’s signature are clear.
Important Points to Remember
Banks may refuse notes stuck with glue or tape.
For exchanging notes worth more than Rs 50,000, you may be asked for ID proof.
Banks may charge service fees on large amounts as per their rules.
