Have multiple torn notes? Don't worry as RBI issues new guidelines for banks

Got mutilated or torn currency notes in exchange? Now, you don't need to worry about them getting wasted as the central bank of India, the RBI has issued specific guidelines regarding them. The Reserve Bank of India says that a mutilated note is a note of which a porting is missing or is composed of two or more pieces. If you have mutilated notes, follow these guidelines laid down by the RBI to get them exchanged at any bank. 

The RBI, in a statement, said, “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."

In a RBI circular, titled “Master Circular – Facility for Exchange of Notes and Coins dated July 01, 2020”,  the bank has said that branches of banks in India need to provide the customer services mandatorily for issuing fresh, good quality notes and coins of denominations of demand and exchange soiled, mutilated, defective notes. 

However, the RBI added that this service is optional for Small Finance Banks and Payments Banks, who may exchange mutilated and defective notes at their option.

For notes presented in smaller number, the RBI said, " ...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." 

It added, "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."

For notes in higher number, the central bank said, " ...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."