Utility: If you get mutilated or damaged notes from ATM, then know what is RBI's rule to get them changed!


There is a possibility of getting mutilated/torn or soiled notes from the ATM machine. These tattered notes are of no use and shopkeepers may even refuse to accept them. While this may worry you, Reserve Bank of India (RBI) rules state that you can easily exchange them with new notes.

Mutilated or soiled currency notes can be exchanged by the bank and no one can refuse to exchange.


What does RBI say about mutilated notes?

Dirty notes are those which are slightly cut. Notes which have numbers on both ends, i.e. notes of Rs 10 and above denomination which are in two pieces, are also considered soiled notes.

The cut in such notes, however, should not be through the number of panels.

How to exchange them?

All these notes can be exchanged at any public sector bank branch, currency chest branch of a private sector bank, or at the counter of any issuing office of RBI.

According to the central bank, there is no need to fill out any form to do so.

In case, where the number of notes tendered by a person is up to 20 pieces with a maximum value of Rs 5,000 per day, banks should exchange them free of cost over the counter.

When the number of notes presented by a person exceeds 20 pieces or Rs 5,000 per day, banks can accept them against a receipt for a later deposit. Banks may also levy service charges. Banks are expected to exercise the usual due diligence if the tender value exceeds Rs.50,000.

What does RBI say about mutilated notes?

Mutilated notes are notes in which a part is missing or which is made up of more than two pieces. The essential parts in the currency note are the name of the issuing authority, guarantee, promissory note, signature, Ashoka Pillar emblem / Mahatma Gandhi's portrait, and water sign.

However, the refund value of these notes is paid as per RBI (Note Refund) Rules.

How to exchange them?

These can be changed over the counter in any Public Sector Bank Branch, any Currency Chest Branch of a Private Sector Bank, or any Issue Office of RBI without filling out any form.

Where the number of notes tendered by a person is up to 5 pieces, non-chest branches should normally adjudicate the notes and pay the exchange value over the counter.


What does RBI say about badly torn, burnt, stuck notes?

Notes that have become too brittle or badly burnt, or are inseparably glued together and, therefore, cannot withstand normal handling, will not be accepted by bank branches for exchange.

Instead, holders may be advised to deposit these notes at the concerned issuing office, where they will be decided under a special process.

Other facilities for exchange

As per public convenience, the facility for the exchange of mutilated notes is also provided through the Triple Lock Receptacle (TLR) cover.

Members of the public can obtain TLR cover from the inquiry counter and place it in their note cover with details like name, address, the value of notes deposited, etc.

The box is kept at the inquiry counter of each Issue Office of RBI. The acceptable exchange value of mutilated notes will be remitted through a bank draft or pay order. Mutilated notes can also be sent by registered/insured post to any office of the Reserve Bank of India.