Although the use of digital payments has dramatically increased, some everyday scenarios still call for the use of monetary notes. You could occasionally receive a note that is dirty or ripped from an ATM, a bulk payment, or somewhere else. Some attempt to employ them in these circumstances by concealing themselves in a note bundle or a nearby vegetable market where everyday transactions are in motion.
However, not many people are aware that damaged currency notes may be exchanged through India’s banking system. In this regard, the Reserve Bank of India has set explicit rules. The RBI has outlined several forms of damage to currency notes and the procedure to replace them under the facilities for exchange of dirty and mutilated currency notes.
How can I exchange soiled currency in a bank?
Notes that have been cut and turned filthy are referred to as soiled notes. Additionally, notes with numerals on both ends and denominations of Rs. 10 and higher that are in two parts are classified as dirty notes.
Exchanging of soiled notes :
However, the cut in such notes wasn’t supposed to go through the number panels. All of these notes can be exchanged at the counters of any public sector bank branch, any private sector bank’s currency chest branch, or any RBI issue office. There is no form to complete in order to accomplish this.
How are damaged money notes exchanged?
Exchanges are also permitted for notes that are incomplete or lack critical components. Name of the issuing body, guarantee, commitment clause, signature, Ashoka Pillar insignia, Mahatma Gandhi image, and watermark are the essential components of a currency note.
Replacement of damaged currency notes :
However, the RBI (Note Refund) Rules are followed while paying the refund value of these notes. These can also be exchanged at the counters of any branch of a public sector bank, any branch of a private sector bank that operates a currency chest, or any issue office of the RBI without having to fill out any paperwork.
Other exchange facilities
Triple Lock Receptacle (TLR) :
To make exchanging damaged notes easier for the public, TLR (Triple Lock Receptacle) covers are also available. People can get a TLR cover from the Reserve Bank’s Enquiry Counter, insert their notes in it, fill in the columns on the cover with information like their name, address, the denominations of the notes they’re depositing, etc., close the cover, and deposit it in a Triple Lock Receptacle box in exchange for being given a paper token.
At each Reserve Bank issuance office, this box is stored beside the inquiry desk. A bank draught or a pay order will be used to transfer the mutilated notes’ acceptable exchange value. Notes that have been tampered with may also be forwarded by registered or insured mail to any RBI office.
Notes that are severely tarnished, fragile, or burned :
Only at the RBI’s issuance office are notes that are able to be replaced if they are highly dirty, brittle, or burned and cannot sustain regular handling.
intentionally cut out notes
If offered for payment of exchange value, notes that are discovered to be intentionally cut, damaged, changed, or tampered with will be refused. The RBI has argued that even though it is impossible to define deliberately cut notes with absolute precision, a close examination of such notes will unmistakably show any deliberate fraud intention, as the way in which such notes are mutilated will follow a broad uniformity in the shape/location of missing portions of the notes, especially when the notes are tendered in large quantities.
Small amounts of notes: If a person presents up to 20 pieces of notes totaling a maximum value of Rs 5000 per day, banks should exchange these over the counter at no cost. Bulk notes presented: If a person presents more than 20 pieces of currency or Rs. 5000 in value every day, banks may accept them as payment in exchange for subsequently crediting the amount. Banks may impose service fees.
RBI locations that offer exchange services :
The services are offered at the RBI’s regional offices’ counters in Ahmedabad, Bangalore, Belapur (Navi Mumbai), Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram, as well as a currency chest run by the Bank in Kochi.