People often receive torn, dirty or stained notes. Sometimes, such notes are also dispensed from ATMs, which cause problems. Often, shopkeepers refuse to accept such notes, and people do not know how to exchange them. Therefore, it is important to know what rules the Reserve Bank of India (RBI) has made for exchanging these notes and how many notes a bank can exchange in a day.
How many notes can be changed in a day?
According to RBI rules, a person can exchange a maximum of 20 notes at a time. The total value of these notes should not exceed ₹5,000. In this case, the bank makes the payment immediately over the counter. However, if the total value of the notes exceeds this amount, the bank accepts the note, and the money is deposited into your bank account. It may take some time to exchange notes of more than ₹50,000.
Does anyone charge fee for exchanging bank notes?
As per RBI guidelines, there is usually no fee for exchanging torn or soiled notes. However, whether you will get the full amount or not depends on the condition of the note. In some cases, especially with heavily soiled notes, you may get a lesser amount. Banks exchange all notes that are clearly identifiable and have the required security features. This includes soiled, torn or slightly damaged notes. If a note is completely burnt or deliberately defaced, the bank may refuse to exchange it.
What happens to too many spoiled notes?
Notes that are badly burnt, stuck together, or in very poor condition may be rejected by regular bank branches. Such notes can be exchanged at the RBI issue office, where they are valued differently. RBI has made it clear that no bank can refuse to exchange torn or dirty notes. The bank decides the value of the note based on the remaining portion and makes payment accordingly.
Full price for smaller denominations
As per RBI rules, there is no provision for giving half price for notes ranging from Rs 1 to Rs 20. Full value is given for such notes. However, for notes ranging from Rs 50 to Rs 500, some deduction may be made depending on the condition of the note. In guidelines issued in April 2017, the RBI had said that all banks are obliged to replace torn or defaced notes of their customers. This service is free, and no extra fees can be charged for it.
