How to exchange soiled and mutilated currency notes?

What you do with the currency notes which are not acceptable by any of your sabjiwaala, milkman or nearest grocery owner? Will you destroy them or exchange with banks? Yes, best option will be to exchange not with RBI but any of your nearest bank!!!

Before proceeding to the rules of exchange, let us first understand few definitions of the notes which can be acceptable by your bank.

Soiled note-A currency which became dirty due to normal wear and tear or a two piece of a note where both the pieces of the same note are pasted together by forming entire note where nothing important features are missing.

Mutilated note-A note where some part of a note is missing or composed of two or more pieces.

Extremely brittle, burnt, charred, stuck up notes-A note which turned extremely brittle or badly burnt, charred or stuck up together notes. Such notes are unacceptable to banks.

Notes having the stamp of “PAY”/”PAID” “REJECT” stamps-These are the currency notes which are either already exchanged or rejected based on the quality of notes as mentioned above. Hence, notes bearing such stamps will not be acceptable by banks. Hence, it is best to not accept such stamp bearing notes from anyone.

Soiled and mutilated currency notes

Picture Courtsey-RBI Website.

Notes bearing slogans or political messages-These are notes which contain some political slogans, disfigured or messages. Such currency notes are not acceptable by banks. Hence, never accept such notes from anyone.

Deliberately cut notes-Notes which are deliberately cut are not acceptable by banks for exchange. It is difficult to identify such notes. But still by the cuts of note bankers may identify and classify under this category to reject.

A few points to understand before going for exchange of such currency notes

  • All branches of banks are authorized to provide such exchange.
  • This facility will be available during the time of working hours of the branch.
  • No bank can reject the small denomination of notes exchange.
  • Even if you are not a customer of your nearest branch then also they need to provide you this service.

When your notes will get rejected?

If your mutilated note represents less than or equal to 50% of a full size of the note then it will be getting rejected by banks for the currency of Rs.1,2,5,10 and 20. But for currency notes of value Rs.100, 500 or 1,000 consist of only 40% or less than that then it will get rejected.

28 thoughts on “How to exchange soiled and mutilated currency notes?”

  1. I Have rs.500 New currency note cut in four pieces but features are all correct and its jointed can be exchange if yes where canexchange public sector bank reject it

  2. hello sir, do we have to pach up parts of a burned 500rs note with white paper and then hand it over to bank for replacement.

  3. AS per RBI Section NRE non indian resident who having their NRE account in india for transferring found to india as non commercial purpose to their parents for day to day expenses allow to deposit up to 10 lakhs in indian currency and 5000 dollar on or before 23.59 hours 12/5/2016 in home branch with athority latter form account holder with valide passport notarized photo copy

  4. I m working as head cashier for central bank of India Nagarabhavi branch. I had recd two Rs 500/- cut notes with all the features intact. But our currency chest at millers road returned the same saying RBI is not accepting the same.kindly guide me in this matter.

    1. Hemalatha-Nice to know that you belong to same area where I reside (Nagarabhavi). As per RBI all banks must accept such notes. They are just rejecting it with the intention to offload their work. Let them show the RBI’s notification regarding the same (I know it is hard for you to ask such questions to your colleagues).


    Dear Mr. Basavaraj Tonagatti, do they charge anything to exchange the amount. or is there any procedure to exchange the note.


    i am in chennai, i have a 500 rupee note which is partially burnt, it has burnt top left corner next to the rs. 500 till the letter r (in the word reserve bank of india) on the top, no important features has been burns, kindly suggest me where to exchange the note.

  7. I have a cut note of denomination 1000 Rs. having a small part of the currency number is missing. SBI and BOI refused to exchange it. What can I do?

    1. Pradeep-In my view, they can’t reject. Because small part of currency number missing means not even 50% of note mutilated. Let them give it in written that they are rejecting the note for particular reason.

    1. Basavaraj Tonagatti

      Sushila-They have to if your notes are within the rule of RBI. Just ask them written rejection letter.

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