How to exchange torn currency notes: Bank branches, procedure, limit and details

Exchange currency notes: You can exchange up to 20 notes with a daily maximum value of ₹5,000 at banks for free.

You can exchange soiled or defective notes in any banks all over the country although the rules are different when it comes to exchanging notes in small amounts and in bulk. As per the Reserve Bank of India (RBI) website, “A ‘soiled note’ means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing. These notes shall be accepted over bank counters in payment of Government dues and for credit to accounts of the public maintained with banks.”

Exchange currency notes: You can exchange up to 20 notes with a daily maximum value of ₹5,000 at banks for free.

What are the rules that apply to exchanging of notes?

You can exchange up to 20 notes with a daily maximum value of ₹5,000 at banks for free.

In case the number of notes exceeds 20 pieces or ₹5,000 in value per day, banks accept them against receipt and the value will be credited later.

For this, banks will levy service charges as well.

In case value is above ₹50,000, banks will check and take necessary precautions as well as per the rules.

RBI noted in its circular, “Where the number of notes presented by a person is more than 5 pieces but not exceeding ₹5,000 in value, the tenderer shall be advised to send such notes to nearby currency chest branch by insured post giving his / her bank account details (a/c no, branch name, IFSC, etc.) or get them exchanged thereat in person. All other persons tendering mutilated notes whose value exceeds ₹5,000 shall be advised to approach nearby currency chest branch. Currency chest branches receiving mutilated notes through insured post shall credit the exchange value to the account of sender by electronic means within 30 days of receipt of notes.”