Damaged currency notes can be frustrating when refuses to accept them. But do you know that getting torn, damaged and partially burned or any kind of soiled notes exchanged with new ones is as easy as walking into your nearest bank? This is because the RBI has made it mandatory that every bank should accept damaged currency note without charging any fee.
As per RBI, before approaching a bank to exchange the damaged note, you should check whether it is soiled or mutilated. A soiled note also includes a two-piece note pasted together with no essential feature missing. These notes should be accepted over bank counters in payment of government dues and for credit to accounts of the public maintained with banks.
On the other hand, a mutilated note means a portion is missing from the note or which is composed of more than two pieces. Mutilated notes can be presented at any of the bank branches. The notes will be accepted, exchanged and adjudicated in accordance with RBI norms. Any kind of currency note will be accepted by the bank only if the serial numbers of them are identified.
In the wake of the incident of Rs 5 lakh being damaged by termites in Krishna of Andhra Pradesh, many are checking their old notes whether they are in good condition or damaged. Usually, senior citizens have the habit of hiding their cash in secret places in their homes.
There are now agents who get your notes exchanged for a commission. A group of such agents make a living out of this business near the RBI on Secretariat Road. These agents also give denominations for a big currency like Rs 500 and Rs 2,000. People can get the currency of Rs 10, Rs 20 and Rs 50 in bulk through the exchange by paying commission.