Soiled notes
The definition of a soiled note has been broadened to speed up exchanges.According to the Reserve Bank of India (RBI) website, a soiled note is one that has become dirty due to regular use. This includes notes that are in two pieces but belong to the same note and have no missing essential features. Such notes are accepted at bank counters for paying government dues and crediting public accounts, according to an ET report.
Mutilated notes
A mutilated note is one that is missing a part or is in more than two pieces. These notes can be taken to any bank branch. The branches will ensure that exchange services are not monopolized by private individuals or dealers of damaged notes.
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Extremely damaged notes
Notes that are extremely brittle, burnt, charred, or stuck together to the point where they can’t be handled normally will not be accepted for exchange at bank branches. Holders should instead submit these notes to the relevant Reserve Bank of India Issue Office, where they will be assessed under a special procedure.
Currency notes exchange limits
If a person presents up to 20 notes worth up to Rs 5,000 per day, banks will exchange them for free. If the number of notes exceeds 20 or the value is over Rs 5,000 per day, banks will accept them and provide a receipt. Service charges may apply. For amounts over Rs 50,000, banks will take standard precautions, the report said.
Currency notes exchange procedures
Exchanging notes in small number
Non-chest branches will assess and exchange up to five notes over the counter. A receipt will be provided, and if the branch cannot assess the damage, the notes will be sent to the currency chest branch for a decision. The person will receive notification of the payment date, usually within 30 days, and will be asked for their bank account details for electronic crediting.
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Exchanging notes in larger quantity
As per the RBI Master Circular dated April 1, 2022, if someone presents more than 5 notes, but the total value doesn’t exceed Rs 5,000, they should either send the notes to the nearby currency chest branch via insured post along with their bank account details, or exchange them in person at the branch.
Individuals with mutilated notes worth more than Rs 5,000 are advised to directly visit the nearby currency chest branch. Currency chest branches receiving mutilated notes through insured post will electronically credit the exchange value to the sender’s account within 30 days of receiving the notes.
