What is mutilated and soiled notes?
Currency notes that are damaged,
soiled, mutilated notes or imperfect can still retain their value and can be
exchanged for full face value at authorized banks or financial institutions.
This is provided that the notes are not found to be counterfeit. However, notes
on which religious or political slogans are written are no longer considered as
legal tender and cannot be exchanged. It's worth noting that cooperative banks
and regional rural banks are not authorized to exchange mutilated notes and
it's advisable to approach a full-fledged commercial bank or Reserve Bank of
India (RBI) issue office for this purpose.
Table of Contents
1. Soiled note
2. How do I exchange mutilated notes?
4. Exchange of mutilated and imperfect notes
5. What is the value of
mutilated notes?
Soiled note
A ‘soiled note’ means a note which has
become dirty due to normal wear and tear and also includes a two pieces note
pasted together wherein both the pieces presented belong to the same note and
form the entire note with no essential feature missing. These notes can be
accepted. However, in no case, these notes should be issued to the public as
re-issuable notes and shall be deposited in currency chests for onward
transmission to RBI offices as soiled note remittances for further processing.
How do I exchange mutilated notes?
Exchange of soiled notes
Notes presented in small number: Where
the number of notes presented by a person is up to 20 pieces with a maximum
value of Rs. 5,000/- per day, branch should exchange them over the counter.
Notes presented in bulk: Where the
number of notes presented by a person exceeds 20 pieces or Rs. 5,000/- in value
per day, branches may accept them, against receipt, for value to be credited
later as per the bank details provided by the public .Bank branches are
expected to take the usual precautions and conduct due diligence.
Mutilated note
• A mutilated note is a note of which a
portion is missing or it is composed of more than two pieces
• If the notes satisfy the definition,
such notes shall be accepted, exchanged and adjudicated in accordance with
Reserve Bank of India (Note Refund) Rules 2009
• Mutilated notes accepted can be given
full value, half value or no value as per the condition of the note
• Stencils are used for arriving at the
adjudicated value of mutilated notes
In case the branch is in receipt of
extremely brittle, badly burnt, charred, inseparably stuck together notes which
cannot withstand further handling or may lose their original identity with the
passage of time; such notes will not be accepted by the branches for exchange.
Bank branches advice the holder/s of such notes to tender them by along with
the Form CL30 to the Issue Department of the Reserve Bank of India where such
notes will be examined under Special Procedure.
Deliberately Cut Note:
The notes, which are found to be
deliberately cut, torn, altered or tampered with, if presented for payment of
exchange value should be rejected under Rule 6(3)(ii) of the Reserve Bank of
India (Note Refund) Rules, 2009. Although it is not possible to precisely
define deliberately cut notes, a close look at such notes will clearly reveal
any deliberate fraudulent intention, as the manner in which such notes are
mutilated will follow a broad uniformity in the shape/location of missing
portions of the notes, especially when the notes are tendered in large numbers.
Exchange of mutilated and imperfect notes
How many mutilated
notes can be exchanged?
One can exchange mutilated notes by
following mutilated notes exchange rules
Mutilated Notes presented in small
number: Where the number of notes presented by a person is up to 5 pieces,
non-chest branches normally adjudicate the notes as per the process and pay the
exchange value over the counter. If the non-chest branches are not able to
adjudicate the mutilated notes, the notes may be received against a receipt and
sent to the linked currency chest branch for adjudication. The probable date of
payment is informed to the tenderers on the receipt itself and the same should
not exceed 30 days. Bank account details is obtained from the tenderers for
crediting the exchange value by electronic means.
Mutilated Notes presented in bulk:
Where the number of notes presented by a person is more than 5 pieces not
exceeding Rs. 5,000/- in value, customer is advised to send such notes to
nearby currency chest branch by insured post giving his/ her bank account
details (a/c no, branch name, IFSC, etc.) or get them exchanged there at in
person. All other persons tendering mutilated notes whose value exceeds Rs.
5,000/- are advised to approach nearby currency chest branch. Currency chest
branches receiving mutilated notes through insured post credit the exchange
value to the account of sender by electronic means within 30 days of receipt of
notes.
Further, RBI has also instructed banks
to display a notice on the exchange of notes and coins at the branches inside
and outside branch premises. Branches may dispense a mix of notes and coins in
exchange of soiled notes.
What is the value of mutilated notes?
Value of mutilated is adjudicated into Full value, Half value with the help of rules as given in the table below
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