We all come across old soiled and imperfect notes in our day to day life. Many of us don't bother and try to make it work by making payments and wash our hands. Many individuals are not aware of what should be done to such notes and whom to contact.
What are soiled, mutilated or imperfect notes?
Soiled notes are those which have become dirty and slightly cut. Mutilated notes which are in pieces and/or of which the essential portions are missing can also be exchanged.
Notes which have become excessively soiled, brittle or are burnt and, therefore, cannot withstand normal handling can be exchanged only at Issue Office of the RBI.
Where can one exchange old torn notes?
One can exchange the notes in all authorized bank branches over the counter, where the number up to 20 pieces with a maximum value of Rs 5000 per day.
In case where the number of notes presented by a person exceeds 20 pieces or Rs 5000 in value per day, banks may accept them, by charging some service fee.
Note that no bank has the authority to reject the small denomination of notes for exchange.
Notes can also 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 RBI.
When banks can reject your note?
A banknote for which the area of single largest undivided piece of note presented is less than or equal to 50% of area of the note for denominations of Rs 1, Rs 2, Rs 5, Rs 10 and Rs 20.
When the area of the single largest undivided piece of the note is less than 40 percent for denominations of Rs 50, Rs 100, Rs 500 or Rs 1000, such notes can be rejected.