The concern over whether banks accept torn or damaged notes is a common one among individuals. However, there's no need for worry, as banks across the country do accept soiled, mutilated, or defective notes for exchange. The rules regarding this exchange process may vary based on whether it involves small amounts or bulk transactions.
Soiled notes, which have become dirty due to regular use but still have all essential features intact, can be exchanged at bank counters for government dues or credited to public bank accounts. Mutilated notes, which may have missing portions or be made up of multiple pieces, are also accepted by banks at their branches to prevent private money changers from monopolizing exchange services.
However, notes that are extremely damaged, such as being brittle, burnt, charred, or inseparably stuck together, and cannot withstand normal handling, are not accepted at bank branches. Instead, holders should submit these notes to the Reserve Bank of India (RBI) for evaluation under a special procedure.
For individuals looking to exchange notes, there are certain exchange limits to be aware of. Banks typically provide free over-the-counter services for exchanging up to 20 notes worth Rs 5,000 per day. For amounts exceeding this limit, banks may accept the notes against receipt and levy service charges, with extra precautions taken for amounts over Rs 50,000.
When it comes to exchanging mutilated or imperfect notes, the process varies based on the number of notes being exchanged:
- For a small number of notes (up to five damaged notes), non-chest branches assess and pay for them over the counter. If they are unable to make a decision, the notes are sent to associated currency chest branches for evaluation. The individual receives a receipt indicating the expected payment date (within 30 days) and is asked for bank account details for electronic crediting.
- For bulk exchange involving more than five pieces of notes (up to Rs 5,000 in value), individuals can send them to nearby currency chest branches via insured post, along with bank account details for electronic crediting. For amounts exceeding Rs 5,000, individuals should directly approach currency chest branches, where the exchange value is credited electronically within 30 days of receipt of the notes.
