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Exchange of mutilated notes: Many times we get to see torn, burnt or stuck notes. Often we have seen that if the note is slightly torn, some people try to fix it by applying tape. An attempt is made to save the burnt notes by cutting their edges. Water or other adhesives are used to separate the stuck notes. After doing all this, some people try to circulate these notes in the market, which is wrong and illegal.
When you go to the market with such notes, shopkeepers often refuse to accept such notes, which causes you loss. If you intentionally use torn, burnt or sticky notes, you may have to face legal action. Now what is the benefit of these Jugaads? In such a situation, the question arises in the mind that what should be done with these notes?
Rules for exchanging torn or burnt notes
According to the rules of the Reserve Bank of India (RBI), you can deposit torn notes in your nearest bank. RBI has made rules for changing torn or burnt notes. By following these rules you can avoid loss. If you have torn, burnt or stuck notes, then here we will tell you how you can change torn, burnt or stuck notes. So let's know…
What did RBI say on torn notes?
According to RBI, a torn note is a note whose part is missing or joined in more than two pieces. No form is required to exchange a torn note.
Torn notes up to Rs 5,000 will be replaced free of cost
If you deposit up to 20 pieces of torn notes of the value of up to Rs 5000 in the bank, the bank will replace it for free. But, if you deposit more than 20 pieces or torn notes of the value of more than Rs 5000, then in such a situation the bank will later evaluate the notes and deposit the value in your account. In this situation, the bank can also charge a service charge. At the same time, the bank will take some necessary precautions while depositing torn notes of more than Rs 50,000.
Let us tell you that the value of torn notes will be given as per the note refund rules of RBI.
What to do with burnt or stuck notes?
If you have burnt or chipped notes, RBI says that notes that have become too brittle or are badly burnt, or stuck together and cannot be used normally will not be accepted at the bank branch. Such notes should be deposited at the concerned issuing office, where they will be evaluated under a special procedure.