Exchanging soiled or defective currency notes is a common practice, and individuals can do so at any bank branch across the country. The Reserve Bank of India (RBI) has established specific rules and regulations governing this process, ensuring the smooth exchange of damaged or worn-out notes.
According to the RBI guidelines, a ‘soiled note’ refers to a note that has become dirty due to normal wear and tear. It can also include a two-piece note that has been pasted together, provided both pieces belong to the same note and form its entirety with no missing essential features. Such notes are accepted over bank counters for payments of government dues and for crediting to public accounts maintained with banks.
Individuals seeking to exchange soiled or defective notes at bank branches can do so within certain limits. For amounts up to ₹5,000 and comprising not more than 20 notes, the exchange is free of charge. However, if the number of notes exceeds 20 pieces or the value surpasses ₹5,000 per day, banks may levy service charges. For amounts exceeding ₹50,000, banks are required to conduct additional checks and precautions as per RBI regulations.
To facilitate the exchange process, RBI advises that individuals presenting more than 5 but not exceeding ₹5,000 worth of mutilated notes can send them to a nearby currency chest branch via insured post. Alternatively, they can visit the branch in person to exchange the notes. For amounts above ₹5,000, individuals are advised to approach the nearest currency chest branch directly. Currency chest branches receiving mutilated notes through insured post are obligated to credit the exchange value to the sender’s account electronically within 30 days of receipt.
By adhering to these guidelines and procedures, individuals can efficiently exchange soiled or defective currency notes and ensure the smooth circulation of legal tender in the country.
