Banking News

New rule for Exchange of Soiled, Mutilated, and Imperfect Notes

New rule for Exchange of Soiled, Mutilated, and Imperfect Notes

As per the new direction of RBI, banks are asked to exchange, free of charge, the small number of soiled notes up to 20 pieces with the maximum value of Rs.5000/ presented   by a person, over their counter.

A ‘soiled note’ is the note which has turn out to be dirty due to normal wear and tear and also includes a two piece note pasted together. Where the both the pieces of a note presented should belong to the same note and form the entire note with no essential feature missing.

In case you have soiled notes in excess of 20 pieces or for value more than Rs.5000/-, banks may accept them, against receipt, for the value to be credited to your account later. However, banks would levy the service charge for notes presented in bulk (in excess of 20 pieces) towards the exchange of soiled notes. If the tendered value is above Rs.50000/- banks are expected to take the usual precautions in exchange of notes.

Exchange of mutilated and imperfect notes

When a portion is missing or which is composed of more than two pieces, such notes are called ‘Mutilated Notes’.  You may present such mutilated/imperfect notes at bank counters for exchange.  A non-chest branch of a bank should accept the small number of notes up to 5 pieces per day and adjudicate them and pay the value in accordance with Reserve Bank of India (Note Refund) Rules 2009. If the branch is unable to adjudicate the notes at their own, they may receive the notes presented by the depositor against a receipt and send them to their linked currency chest branch for adjudication and pay the value.

In case of mutilated or imperfect  notes to be exchanged in bulk (more than 5 pieces or the value exceeding Rs.5000/-), you are required to send such notes directly to a nearby currency chest branch through insured post giving the details of your a/c no, branch name, IFSC, etc. or you may get them exchanged there  in person. Currency chest branches receiving mutilated notes through a bank branch or insured post should credit the exchange value to the account of the sender by electronic means within 30 days of receipt of notes.

Notes which have turned extremely brittle or are badly burnt, charred or inseparably stuck up together and, therefore, cannot withstand normal handling, will not be accepted by the bank branches for exchange. Instead, the holders may tender these notes to the concerned Issue Office of RBI where those notes will be adjudicated under a Special Procedure.

CLICK here for related article :All scribbled currency notes are not illegal: RBI

(2) Comments

  1. gp mahanty

    Kindly issue Note Refund Policy in respect of 2000/500 denomination currency. We are suffering very much for want of this circular. Please help us.

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