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Currency notes often get torn or soiled due to mishandling. To make sure that the notes retain their value, the Reserve Bank of India allows for their exchange.
The RBI has some guidelines for exchanging damaged notes. They can be exchanged at authorised bank branches by following the proper procedure.
Let’s have a look at the process for exchanging damaged currency notes in India.
Dirty, discoloured, or even slightly torn notes can be exchanged at any bank branch even if one doesn’t have an account in that bank.
Banks accept these notes and provide replacements, or the amount is credited instantly to the depositor’s account.
Badly damaged notes, with some parts missing but still retaining key security features, can be exchanged at designated bank branches under the RBI’s Note Refund Rules.
Depositors might get a full or partial refund, depending on the extent of damage and the evaluation by the central bank.
Currency notes that are extremely damaged, charred, or disintegrated into pieces, may not be eligible for exchange/refund.
Individuals can submit these extremely damaged notes to the RBI’s ‘issue offices’ for evaluation if they seek any compensation for them.
Currency notes should be left in their original state to be eligible for exchange as taped or stapled notes are not accepted.
Banks examine the condition of the notes as per RBI guidelines and cannot refuse to exchange notes if any currency is eligible for the same.
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