Torn Notes Rules: Reserve Bank of India (RBI) has made rules regarding torn notes. According to the rules, these can be exchanged in any public sector bank. There are some conditions for exchanging torn notes. But, it is not necessary that if you go to exchange a 100 rupee note, you get only 100 rupees in return. You may also get a few rupees less in return.
Why does the bank take back torn notes?
RBI has issued guidelines for the exchange of such torn notes. According to this, all such notes which are not yet in a condition to be used in the market are withdrawn from circulation and new notes are introduced in the market in their place.
Will there be a fee for exchange?
According to RBI rules, if you have a torn note, you can easily exchange it from a bank or RBI office. However, the extent to which the note is torn also depends on whether the bank will charge you any fee for exchanging the note or not.
How many notes can be exchanged at one time?
According to RBI, a maximum of 20 notes can be exchanged at a time. Their maximum value should not exceed Rs 5000. The bank will make the payment immediately at the counter. If notes of more value are exchanged, the bank receives it and puts the money in your account. If notes of more than Rs 50,000 are exchanged, the bank may take a little more time.
Which notes do banks exchange?
The bank can take back any kind of torn or dirty notes from you, but keep in mind that all the necessary features of the note should be present. If a note is completely damaged or burnt, then the bank will not take back such notes. The bank also checks whether any note has been damaged intentionally or not.
What will happen if the note is damaged too much?
Notes that are badly burnt or stuck together can also be exchanged. Normal banks refuse to exchange such notes. In such a case, it should be exchanged at the RBI office. Here these notes are treated differently. You can get money for it. However, you may have to pay some fee.
The bank cannot refuse to exchange the note
The bank can never refuse to change your torn notes. The bank will return money to you according to the part of the torn note you have. Sometimes notes get torn by mistake or even old or mutilated notes get torn. In such a case, the bank easily changes these notes.
You will get full money in exchange of 1-20 rupees
According to RBI rules, there is no provision for giving half the amount in notes of 1 rupee to 20 rupees, full payment is made in these notes. On the other hand, some fee may have to be paid for changing 50-500 rupee notes.
