Torn Note Exchange: Have Mutilated Currency Note? Don’t Worry, RBI releases guidelines

By Lokmat English Desk | Published: August 26, 2021 12:30 PM2021-08-26T12:30:44+5:302021-08-26T12:30:44+5:30

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If you have received a torn or mutilated currency note, you don’t need to worry. Reserve Bank of India (RBI) has laid down specific guidelines.

If you have torn or mutilated notes, you must follow RBI guidelines to exchange those currency notes.

According to RBI, a mutilated note is a note of which a portion is missing or which is composed of more than two pieces. “Mutilated notes may be presented at any of the bank branches. The notes so presented shall be accepted, exchanged and adjudicated in accordance with NRR, 2009,” RBI said in the statement.

RBI has given details in its “Master Circular – Facility for Exchange of Notes and Coins dated July 01, 2020.”

“All branches of banks in all parts of the country are mandated to provide the following customer services, more actively and vigorously to the members of public so that there is no need for them to approach the RBI Regional Offices for this purpose,” RBI said.

Small Finance Banks and Payment Banks may exchange mutilated and defective notes at their option. “Notes presented in small number : Where the number of notes presented by a person is up to 5 pieces, non-chest branches should normally adjudicate the notes as per the procedure laid down in Part III of NRR, 2009 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 should be informed to the tenderers on the receipt itself and the same should not exceed 30 days.Bank account details should be obtained from the tenderers for crediting the exchange value by electronic means,” RBI said.

“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, the tenderer should be 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 thereat in person.

All other persons tendering mutilated notes whose value exceeds Rs 5,000 should be advised to approach nearby currency chest branch.

Currency chest branches receiving mutilated notes through insured post should credit the exchange value to the account of sender by electronic means within 30 days of receipt of notes,” RBI said.