The Reserve Bank of India (RBI) sets specific guidelines for exchanging soiled or defective currency notes. Individuals can exchange up to 20 notes with a maximum daily value of ₹5,000 at bank branches free of charge. However, for larger amounts or a number of notes exceeding 20 pieces, banks may levy service charges and follow specific verification and precaution measures. To ensure seamless exchange, it’s recommended to deposit larger amounts of mutilated notes in currency chest branches through insured post or exchange them in person.