It is very important for the common man to know what provisions RBI has made for him. According to the rules and regulations, you can easily change mutilated notes in the bank. You do not have to pay any extra money for this.
The Reserve Bank of India has also prepared guidelines for mutilated notes. Mutilated notes can be exchanged from any bank anywhere in the country. For this it is not necessary that you go to the home branch only. If you bank branch refuses to change the note, then action can be taken against that bank. However, it is also important to keep in mind that the worse the condition of the note, the lesser will be its value.
Know what are the important rules related to changing notes?
1. Notes of small value-
Small notes like torn notes of 5,10,20,50 whose at least fifty percent part is safe, you will get these notes in return.
2. High denomination notes-
If the number of torn notes is more than 20, and the value of other notes is more than 5000 rupees, then you will have to pay a fee for this.
3. Security Sign-
It is an essential rule to change the note that the security sign such as serial number, Gandhiji’s watermark, governor’s signature etc. are visible, then the bank cannot refuse to exchange such note.
4. Write to RBI-
If the notes you have are too torn, in many pieces, then you will have to send these notes to the RBI branch by post. Where it is necessary to give information like account number, IFSC code, how much the note is worth etc.
What happens to torn notes?
RBI removes these notes from use, it is also the responsibility of Reserve Bank of India to print new notes instead of these notes. These notes are recycled by grinding them into small pieces, which are later used to make other paper items.