Good News! Now Exchange Torn or Damaged Note With a New One

The largest government bank of the country SBI - State Bank of India, has received many complaints about torn and damaged notes. Many times, when we not pay attention but some such currency notes come in our pocket, which cannot be used anywhere. These notes are torn or mutilated or in a condition that no one accepts it.  

Now you don’t have to waste your time worrying about your Mutilated or Torn Note, you can follow these guidelines issued by the Reserve Bank of India to exchange and get a New One.

In this regard many circulars have been issued by the RBI from time to time. The Reserve Bank of India has laid down easy rules to exchange these mutilated notes at RBI office or any bank branch.  It must be noted that a person can exchange the maximum of 20 notes at a time.

The maximum value of which of these notes should not exceed Rs 5,000. You will not have to pay any charge for getting these notes exchanged at the place set by RBI. More than 20 notes can be accepted in the banks against a receipt. It is paid later. For this, the bank can charge you the fees prescribed by RBI.

How to Exchange Damaged Notes

• Mutilated or soiled notes are accepted. Kindly note that the pieces of a note should have all the necessary features. According to RBI’s rule, if a note is burnt or has become completely useless, then it cannot be exchanged.

• It is advised that a note should be deposited only in the RBI issue office. Here, there is a different process to change it.

• The decision to exchange the note rests with the bank. No customer can pressurize the bank to exchange such notes. While exchanging the note, it is checked that it has not been torn intentionally.

Will you get full money back?

• The value of the exchange of these mutilated or damaged notes for the general use clearly depends on its condition. It depends on how torn or cut that note is. If the largest piece of a note of less than Rs 50 value is more than 50% of the normal note, then on exchange of this note, its full value will be found.

• If the largest piece of a note with a value of more than Rs 50 is 80% or more than the normal note, then you will get the overall value on an exchange of this note. If the largest piece of a note with a value of more than Rs 50 is between 40 & 80% of the normal note, then you will get only half the value of that note.

• If there are two pieces of the same note with a value of more than Rs 50 and these two pieces are up to 40% of the normal note, then you will getting the value equal to the full value of a note. Half price is not available on exchange of Rs 1, Rs 2, Rs 5, Rs 10 & Rs 20 notes.

• If the largest piece of a note with a value of less than Rs 50 is less than 50% of the normal note, then no value will be available on the exchange of this note. If the largest piece of a note with a value of more than Rs 50 is less than 40% of the normal note, then no value will be available even after the exchange of this note.

This is a common problem that many people including the farming community face in their day to day lives hence we hope that the information can help all of them.