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How much value can you get in exchange for damaged currency notes? Find out

Today, we will walk you through the guidelines established by the Reserve Bank of India (RBI) regarding such imperfect currency notes.

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A lot of times when people find torn, mutilated, or damaged notes with them. They might also come from the ATM or be received during a transaction. If you would like to know what you can do with these imperfect notes then read on. 

Today, we will walk you through the guidelines established by the Reserve Bank of India (RBI) regarding such imperfect currency notes. We will also help you understand what value you can get if you get these currency notes exchanged. 

What do RBI guidelines say?

According to the guidelines laid down by the Reserve Bank of India (RBI), if you have a torn, mutilated, or damaged currency note with you then its value may be paid in full/half depending on the rules specifically written in Part III of Reserve Bank of India (Note Refund) Rules, 2009 

Note: As amended by Reserve Bank of India (Note Refund) Amendment Rules, 2018. 

Further details about the same can be found out by visiting the RBI official website - www.rbi.org.in then going to 'Publications' and then clicking 'Occasional'.

What kind of currency notes are eligible/not eligible for payment under the Note Refund Rules (NRR)?

As per the amendments in NRR (2018); 

Notes up to Rs 20 denominations 

  • area of the single largest undivided piece of the currency note > 50%: Full value 
  • area of the largest undivided piece of the currency note =/<50%: Reject 

Notes of Rs 50 and above denomination 

  • If the area is less than 40% then will be rejected. 
  • If the area is >/= 40% and </= 80%: Half value
  • area of the single largest undivided piece of the > 50%: Full value 

It is important to note that the currency notes that are eventually found non-payable are then sent by the receiving banks to the RBI where they are destroyed. 

Normal mutilated notes can be exchanged at any of the bank branch counters or any RBI office. For this process, one need not fill any form.

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