RBI Rule: Damaged currency notes exchange rule

 According to the new rules by the RBI, mutilated currency notes can be exchanged by the bank and no one can refuse to exchange. If you have tape pasted or mutilated notes and you are unable to use them, RBI has made rules to replace them. The torn notes are of no use and nor does anyone take them.

The RBI ruling says that such notes can be exchanged by visiting any bank. The RBI also mentioned that no bank can refuse to exchange notes. According to central bank guidelines, if the bank refuses to do so, action will be taken against the same.

Damaged currency note exchange rules: Conditions by RBI

Damaged notes can be changed on the bank, but there are some conditions for this:

• The worse the note is, its value will be lower.
• If a person has more than 20 damaged notes and their total is more than Rs 5,000, the transaction fee for the same will be charged.
• It is important to see if the note shows security symbols before going for an exchange

Damaged currency notes exchange rule: recycling of damaged notes

If the RBI exchanges the mutilated currency notes, there will be none in circulation. RBI is planning to print new notes.

Earlier, these damaged notes were burnt but now they will be divided into small pieces and recycled. Also, paper products are made from these notes and sold on the market.

Damaged currency note exchange rules: Steps to follow if a bank violates rules

If the bank refuses to exchange the notes, an online complaint can be registered. Action will be taken against the bank employees.

Based on the complaint of the customer, the bank may pay damages up to Rs 10,000.