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How to exchange soiled and mutilated currency notes?

July 9, 2013by Basavaraj Tonagatti

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.

Category: BankingTag: Deliberately cut notes, Mutilated note, Notes bearing slogans or political messages, Soiled note

About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

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Reader Interactions

Comments

  1. Anil Kumar

    June 10, 2018 at 7:21 AM

    It is necessary to write a application for changing a mutilated 500 note?

    Reply
    • Basavaraj Tonagatti

      June 10, 2018 at 10:17 AM

      Dear Anil,
      Yes, better to write.

      Reply
  2. Krishan pareek

    November 29, 2017 at 4:13 PM

    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

    Reply
    • Basavaraj Tonagatti

      November 30, 2017 at 9:31 AM

      Krishan-Visit the nearest bank and get it an exchange. If they are rejecting, then let them give the reasons in writing.

      Reply
  3. Shreyas

    July 10, 2017 at 6:56 AM

    hi, i have two thousand notes partly burnt. someone suggested we can can at rbi bangalore. is it true?

    Reply
    • Basavaraj Tonagatti

      July 10, 2017 at 7:27 AM

      Shreyas-Not at RBI, but you can exchange it in any banks.

      Reply
      • Shreyas

        July 11, 2017 at 4:34 PM

        I went to rbi bangalore, only old notes are allowed to be exchanged.

        Reply
        • Basavaraj Tonagatti

          July 11, 2017 at 6:33 PM

          Shreyas-Whether you visited the banks?

          Reply
  4. manoj

    December 20, 2016 at 3:51 AM

    hi, can i exchange teared new 2000 note ? ….

    Reply
    • Basavaraj Tonagatti

      December 20, 2016 at 7:08 AM

      Manoj-Same rules applies same for the said notes too.

      Reply
  5. surya bhute

    November 28, 2016 at 3:23 PM

    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.

    Reply
    • Basavaraj Tonagatti

      November 28, 2016 at 5:08 PM

      Surya-Refer the above post and check what % of that is torn.

      Reply
      • surya bhute

        November 29, 2016 at 10:14 AM

        10 to 20%

        Reply
        • Basavaraj Tonagatti

          November 29, 2016 at 12:30 PM

          Surya-Then first check with the bank.

          Reply
  6. kiran shaha

    November 23, 2016 at 10:47 AM

    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

    Reply
    • Basavaraj Tonagatti

      November 23, 2016 at 12:16 PM

      Kiran-May I know the source of this RBI notification?

      Reply
  7. Hemalatha kini

    September 23, 2016 at 7:09 PM

    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.

    Reply
    • Basavaraj Tonagatti

      September 23, 2016 at 7:13 PM

      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).

      Reply
  8. SATHISH KUMAR D

    August 18, 2016 at 4:46 PM

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

    Reply
    • Basavaraj Tonagatti

      August 18, 2016 at 6:47 PM

      Sathish-There is no such charges.

      Reply
  9. SATHISH KUMAR D

    August 17, 2016 at 8:25 PM

    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.

    Reply
    • Basavaraj Tonagatti

      August 17, 2016 at 8:35 PM

      Satish-Contact the public sector banks.

      Reply
  10. Pradeep Kumar

    August 1, 2016 at 1:46 PM

    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?

    Reply
    • Basavaraj Tonagatti

      August 1, 2016 at 3:31 PM

      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.

      Reply
  11. Sushila

    July 10, 2013 at 6:26 PM

    Banks out right refuse to exchange the notes

    Reply
    • Basavaraj Tonagatti

      July 10, 2013 at 6:54 PM

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

      Reply
      • rahul

        May 29, 2016 at 4:21 PM

        What if 2 piece is 50-50 means joined from middle and part of same note. Is that accepted ???

        Reply
        • Basavaraj Tonagatti

          May 29, 2016 at 8:39 PM

          Rahul-Try your luck to whom you want to present it.

          Reply

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