Soiled, dirty, discoloured or slightly torn currency notes should be exchanged on all working days, at any time, by the nationalised and private banks for public convenience.
According to the RBI guidelines, all commercial bank branches and currency chest branches must exchange soiled and mutilated notes, offering a full refund for soiled notes and a refund based on intact portions for mutilated notes. While minor transactions are exchanged instantly, bulk deposits may require the bank to provide a receipt for later credit. Severely damaged notes that are burnt or stuck together are not accepted at bank branches and must be submitted to the RBI Issue Office.
As far as dirty, discoloured, or slightly torn notes are concerned, all public sector and private commercial banks, as well as RBI Issue Offices, are required to exchange them for full value.
In case mutilated notes are in pieces, or a portion is missing but the essential security features (like the watermark, promise, signature, or emblem) are identifiable, they can be exchanged at any public sector bank or any currency chest branch of a private sector bank. Banks are mandated to accept and exchange damaged notes from the public, even if the person does not have an account with the bank.
The exchange procedure is also followed by banks. For smaller numbers (up to 20 notes or Rs 5,000 in value per day), banks will generally exchange them over the counter for free. For bulk amounts, a receipt is provided, and the value is credited later, potentially with service charges.
The exchange and adjudication of mutilated notes are governed by the RBI (Note Refund) Rules, 2009. The refund value depends on the extent to which the note is intact.
It is said that the decision of the bank or the RBI officer in regard to any claim for exchange is final. But banks should justify the criteria of this decision in the public interest.
