What is a soiled note?
A ‘soiled note’ means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing.
What notes are considered soiled?
Notes that are disfigured by oil, ink, color, or are limp, or have minor cuts from wear and tear are considered soiled. Notes that are divided vertically through or near the center with the numbers intact are also considered soiled.
Where to exchange soiled notes?
Soiled notes can 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 Reserve Bank of India.
What notes are not considered soiled?
Notes that are badly burnt, charred, inseparably stuck up together, or have political or religious slogans written on them are not considered soiled and cannot be exchanged.
What to do with notes that are not considered soiled?
Notes that are considered soiled can be used to pay government dues or credit accounts at banks. They should not be issued to the public as re-issuable notes. Instead, they should be deposited in currency chests and sent to RBI offices for further processing.
How many soiled notes can be exchanged in a day?
These notes shall be accepted over bank counters in payment of Government dues and for credit to accounts of the public maintained with banks.” Exchange currency notes: You can exchange up to 20 notes with a daily maximum value of ₹5,000 at banks for free.
Regulation for Soiled & Mutilated Currency?
All branches of commercial banks are authorized to adjudicate mutilated banknotes (which are legal tender) and pay value for these, in terms of the Reserve Bank of India (Note Refund) Amendment Rules, 2018. Small Finance Banks and Payment Banks may exchange mutilated and imperfect/defective notes at their option.In terms of Section 28 read with Section 58(2) of Reserve Bank of India Act, 1934, no person is entitled as a right to recover from the Government of India or RBI the value of any lost, stolen, mutilated or imperfect currency note of the GOI or banknote.
What is the penalty for not accepting soiled notes?
If banks refuse to exchange soiled notes, they can be fined Rs 10,000.
Can a bank refuse to exchange damaged money?
Mutilated notes may be presented at any of the bank branches. The notes so presented shall be accepted, exchanged and adjudicated in accordance with Reserve Bank of India (Note Refund) Rules, 2009.