Home > Blog > How to Exchange Damaged Currency Notes?

How to Exchange Damaged Currency Notes?

IamCheated.com Research Team | September 19, 2018  6:30:pm

Damaged currency notes are a headache to deal with as it is difficult to pass on because no one accepts damaged notes. Leaving it in the wallet is a loss as it can’t be used for anything. What we should remember is that RBI has made provisions to exchange damaged currency notes for full or half value, depending on the condition of the note.

A whole new set of currency notes have come into circulation after Demonetisation. On 7th September 2018, RBI has made amendments to the Reserve Bank of India (Note Refund) Rules 2009, by including the newly issued notes in the denominations of Rs 10, 20, 50, and 100. The new notes are smaller than their older counterparts.

The currency notes brought for exchange are categorised into three types: Imperfect Notes (accidentally washed, wear and tear due to continuous use, indecipherable content), Mutilated (torn notes, taped up or glued back) and Mismatched Notes (notes made from joining two separate notes). Mismatched notes can also be exchanged and refunded at the designated branch.

You May Also Watch

Where can I exchange damaged currency notes?

Soiled notes can be exchanged at all branches of all banks, but, damaged notes can only be taken to RBI offices or currency chest branches of any commercial bank. The notes must be exchanged irrespective of whether you hold an account at that branch or not. Any officer of the bank or office can accept the damaged note and exchange it. Currency notes which are extremely brittle, badly burnt, stuck together cannot be exchanged at commercial branches. Such notes must be taken to the In-charge issue department of RBI, where they will be examined.

The branches will accept notes in the denominations of Rs 1, 2, 5, 10, 20, 50, 100, 200, 500, 2000. Once the damaged note is presented at the designated branch, form DN-1 is filled with details of the damaged note and authenticated by the officer and given to the customer.

Depending on the condition of the note, the exchange will be made and repayment will be either full value or half value. The basic criteria for refund value is the size of the single largest piece of the note. Notes in denominations of Rs 50 and higher will receive half or full value and notes in denominations of Rs 20 and lower will receive full value or nothing. The following tables shows the minimum size required for full, half and no value.

Denominations of Rs 20 and lower

Denomination

Area (in cm2)

Minimum area (in cm2) required for payment of full value

1

61.11

31

2

67.41

34

5

73.71

37

10

86.31

44

10 (new)

77.49

39

20

92.61

47

20 (new)

81.27

41

 

  • The minimum area required for payment of full value is calculated as the rounded off square centimetre more than 50% of the total area of the currency note

Denominations of Rs 50 and higher

Denomination

Area (in cm2)

Minimum area (in cm2) required for payment of full value

Minimum area (in cm2) required for payment of half value

50

107.31

86

43

50 (new)

80.10

72

36

100

114.61

92

46

100 (new)

93.72

75

38

200

96.36

78

39

500

99.00

80

40

2000

109.56

88

44

 

  • The minimum area required for payment of full value is calculated as the rounded off square centimetre more than 80% of the total area of the currency note.
  • The minimum area required for payment of half value is calculated as the rounded off square centimetre more than 40% of the total area of the currency note.

Have a complaint against any company? IndianMoney.com's consumer complaint portal Iamcheated.com can help you resolve the issue. Just visit Iamcheated.com and lodge your complaint