It is not necessary for you to have a bank account in the particular branch from where you want to get the notes exchanged.
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Whenever a cash transaction takes place, many times you come across damaged or torn notes. When you try to use notes to purchase something, shopkeepers refuse to accept the damaged currency notes. Reportedly, there are some people who may seek commission from you in exchange for new notes. However, it is important to remember that you can easily get these notes exchanged without paying extra money, by just going to the bank.
You can visit any public or private sector bank and get your old and damaged currency notes exchanged as no bank can refuse to exchange the notes. However, there are certain guidelines the Reserve Bank of India (RBI) has laid down for the exchange of such notes.
What Are the Rules for Changing Notes?
RBI has laid down a fixed limit of a maximum of 20 notes for exchange at a time for a person. This means, in one go, you can get not more than 20 notes changed. RBI has also put a limit on the value as well. So in one go, you can get 20 notes exchanged whose value should not exceed Rs 5,000.
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The bank will immediately accept the damaged notes and give you new notes in their place of the same value. If you have more notes, then the bank will not offer you the exchange immediately. Instead, they will accept the damaged notes and will return the money to you later by depositing it in your bank account.
Security Sign
It should be noted that any bank will exchange only those currency notes which has security sign like serial numbers, the watermark of Mahatma Gandhi and the Governor’s signature, to name a few. If these are not present on your notes, banks will refuse to accept them. Remember, banks will not charge any kind of commission for replacing the damaged notes. It is also not necessary for you to have a bank account in the particular branch from where you want to get the notes exchanged.
How Damaged Is Too Damaged Currency?
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If the currency note you give to the bank is too damaged that is, it is cut too much, or torn up too bad, then there are chances that you will not get the full money for the note’s value. Take for example you have Rs 200 note which is torn. If 78 sq cm of the note is intact, then you will get full money. But, if 39 sq cm of the note is damaged, then you will get just half the money. The same applies to other currency notes.
