Are you frustrated of having old or torn rupee notes? Don’t destroy them, you can exchange them at the banks or try other ways to handle such useless money based on their condition.
Having torn or old rupee note is not complete loss of money… it still has some value, after all Money is Money! If you get such notes, you just get stuck with it. Shopkeepers and other merchants usually refuse to accept such notes. On the other side, there is great need of changing such notes and getting fresh notes for regular use. Many people are ready to absorb the loss; it would be OK if it is matter of just Rs 5, 10, 20 or even 50, but nobody likes risk of such a high amount of Rs 500 or Rs 1,000 notes. Thanks god, The Reserve Bank of India offers some guidelines to solve this problem. Different ways to deal with old or torn rupee notes are given below based on their condition. Try out the suitable one, and get some value from such unusable notes.
Earlier, it was really annoying to handle such useless money because only RBI and the currency chest operating branches of banks were authorized to exchange old or torn rupee notes. But now, RBI has finally revised and simplified the note refund rules to help those who want to exchange torn currency notes for new ones.
It is believed that RBI has installed a new set of machines to service these notes. So, it becomes really easy to exchange torn notes. Also currency notes in the denomination of Rs 1, Rs 2 and Rs 5 are being replaced by coins; in result, the amount of such notes in circulation will be reduced.
Apart from all, RBI gives command to banks to make available the facility of exchange of torn notes and issue of good quality notes/coins at all bank branches including those of co-operative banks as well as regional rural banks. So that, the free exchange facilities can reach to the public without prejudice on all working days.
Ways to handle Old or Torn Rupee notes
Exchange them for new value:
The Reserve Bank of India has offered proper guidelines, called Note Refund Rules. Under it, banks will exchange your torn note but from the banks' point of view, a bad note is further divided into various types that determine new value of the note or you can say refund. So first, checkout the types of such damaged notes here, along with their values based on exchange rules.
Type 1: Soiled Note
Banknotes, which have become dirty and slightly cut due to excessive use, are termed as soiled notes. If any single numbered banknote is cut into two pieces, then on which the number is intact is treated as soiled banknote. And if double numbered banknote (note which has numbers on two ends, i.e. notes in the denomination of Rs.10 and above) is cut into two pieces, then on which both the numbers are intact is treated as soiled banknote. The cut in such notes should not be passed on through the number panels.
All soiled notes can be exchanged for full value at the counter of any bank branch. There is no need to fill up any form. And according to the RBI's rule, this type of note has to be accepted by the bank branch, even if you are not a customer of the bank.
Type 2: Mutilated Notes
If notes are more than two pieces, and/or of which the important portions are missing can also be exchanged. In a currency note, important portions are name of issuing authority, guarantee, promise clause, signature, Ashoka Pillar emblem/portrait of Mahatma Gandhi, and water mark. Refund value of these notes is paid according to RBI Note Refund Rules. These notes can also be exchanged at the counters of any public sector bank branch, any currency chest branch of a private sector bank or any Issue Office of the RBI without filling up any form.
You can get the full value back for Rs 5/10/20, only if you have more than half of the note.
If you have note of Rs 50 or more, you will have to present more than 65% of the note in order to get a full compensation. But you will get only half the value of the note back, if you have about 45%-65% of the note.
And, if the biggest piece of the note you have is less than 40%, then you won't get any value back and you will have to let go of the money.
On having extremely brittle, burnt, charred, stuck-up notes:
Such notes cannot withstand normal handling and so they can be exchanged only at Issue Office of the RBI. So make your visit to the Officer-in-charge of the Claims Section, Issue Department of the RBI for this purpose. As this is very annoying, it is much better to get prepared for loss of money.
Other facilities for exchange:
TLR (Triple Lock Receptacle) cover is the direct way to exchange mutilated notes. Get TLR cover from the enquiry counter of the Reserve Bank and put the notes in the cover with particulars like name, address, denominations of notes deposited, etc. Now close it and deposit it in a box called Triple Lock Receptacle against issue of a paper token. The box is available at the Enquiry counter in every Issue Office of the Reserve Bank. The allowable exchange value of the mutilated notes will be sent through bank draft or a pay order. Mutilated notes can also be sent to any of the RBI offices by registered/insured post.
Donate the money:
If you have no time to go through long procedure for few rupees, just go to the nearest temple or an NGO and drop that useless money in the donation box. This is not genuine idea, but some people actually do it to get rid of the money they cannot just throw away. The temple trust or the NGO replace such money at bank and put it to good use.
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