Exchange of torn currency made easy
This is because the Reserve Bank of India (RBI) has made it mandatory that every bank should accept soiled, mutilated and any damaged currency note without charging any fee
Hyderabad: Damaged currency notes, soiled notes or even mutilated can be a frustrating thing when shopkeepers, fuel pumps or auto drivers refuse to accept them. But do you know that getting torn, damaged, partially burned or any kind of soiled notes exchanged with new ones is as easy as walking into your nearest bank.
This is because the Reserve Bank of India (RBI) has made it mandatory that every bank should accept soiled, mutilated and any damaged currency note, whether the person is a customer of that bank or not, and that too, without charging any fee.
In the wake of the incident of Rs 5 lakh being damaged by termites in Krishna of Andhra Pradesh, many are checking their old notes whether they are in good condition or damaged. Usually, senior citizens have the habit of hiding their cash in secret places in their homes.
According to the RBI, before approaching a bank to exchange the damaged note, you should check whether it is soiled or mutilated. A soiled note means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together with no essential feature missing.
These notes should be accepted over bank counters in payment of government dues and for credit to accounts of the public maintained with banks. On the other hand, a mutilated note means a portion is missing from the note or which is composed of more than two pieces. Mutilated notes can be presented at any of the bank branches. The notes will be accepted, exchanged and adjudicated in accordance with RBI norms.
On the other hand, 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 banks for exchange. Instead, the holders need to tender these notes to the Issue Office concerned where they will be adjudicated under a special procedure.
Mutilated defective notes bearing ‘PAY’/’PAID’ (or ‘REJECT’) stamp of any RBI Issue Office or any bank branch, if presented for payment again at any of the bank branches will be rejected. Those notes found to be deliberately cut, torn, altered or tampered with will also be rejected if presented for payment of exchange value.
Damaged notes a business
There are now agents who get your notes exchanged for a commission.
A group of such agents make a living out of this business near the RBI on Secretariat Road.
“For exchange of Rs 1,000, we take a commission of Rs 50 to Rs 100 depending on the condition of the currency note. People approach us to save time at banks,” said Rajaiah, an agent.
These agents also give denominations for a big currency like Rs 500 and Rs 2,000. People can get the currency of Rs 10, Rs 20 and Rs 50 in bulk through the exchange by paying commission. Vendors, auto drivers and those running commercial establishments usually take denominations in 10s and 50s to ensure enough change with them.
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