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Have Soiled Notes? Here’s What You Can Do As Per RBI

These are notes that are dirty, discoloured, or slightly torn but still intact.

Have Soiled Notes? Here’s What You Can Do As Per RBI

Having currency notes that are torn or damaged is quite common with constant water exposure or rough handling. While local vendors may not accept it, there are clear procedures in place at the Reserve Bank of India (RBI) that prevent the value of such notes from eroding.

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As per the rules laid out by the RBI, individuals can get the damaged notes exchanged at any of the commercial bank branches anywhere in India, regardless of whether or not they have an account in the bank. The transaction is ruled by the central bank’s Note Refund Rules, which tell you how much money you can recover based on the condition of your note.

Soiled Notes

These are notes that are dirty, discoloured, or slightly torn but still intact. Banks accept soiled notes across all branches, and customers don’t need to be account holders. Replacement is typically issued immediately, either in cash or credited to the person’s account.

Mutilated Notes

Mutilated notes, those that are torn into pieces, missing parts, or damaged but still display essential security features, can be exchanged under stricter conditions. “Banks accept such notes, and replacement notes are provided instantly or credited to the depositor’s account,” RBI guidelines state.

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The refund is either full or partial, depending on how much of the note remains and whether security features are clearly visible. Designated bank branches handle these exchanges after verifying the extent of damage.

Extremely Damaged Notes

The currency that’s burned, stuck together, or disintegrated falls under a different category. Such notes are usually not accepted at regular banks. However, in rare circumstances, they can be submitted to the RBI’s issue offices. These offices evaluate the remnants and, if the criteria are met, compensation may be offered.

Where to Go

Most public and private sector banks accept soiled and mutilated notes at their branches. The RBI mandates that no bank should refuse to exchange damaged notes provided they meet the eligibility criteria. After examining the note, the bank issues a new one of the same value if it qualifies.

This process is supposed to protect the worth of legal tender and ensure that currency in circulation remains in usable condition. If you are holding severely tattered notes, reaching out to RBI directly is your best option for redressal.

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