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How to change Soiled and mutilated Bank Notes as per RBI rules

Hemant Singh

Almost everyone of us have some mutilated Notes and coins which are often gathered in the hands of individual due to rupture of piggybank and torn out by the children. The shopkeeper often refuses to take these old and torned Notes. Although refusing to accept the coins is a punishable offence. If you wish to file an FIR against the shopkeeper you can do so because refusing to accept the coins is like a non compliance of the government order and that person can be charged under the provision of sedition.
But if you do not want the involvement of the police in this case, then some guidelines are made by the RBI to solve your problems. So in this article we have tried to explain that how can you convert your coins into currency Notes and how can you deposit soiled Noted in the banks.
Where to replace soiled and old Notes?
If anybody has soiled and old Notes; then he can change these Notes by going to any commercial bank. The most convenient thing is that customer need not to have any account with the bank in which he is he going to change the Notes. No bank can refuse to change your old and soiled old Notes because of the rules of the Reserve Bank of India (RBI).

Suppose you have a Note that has become dirty, a Note that is divided into two parts or any Note has been pasted with glue. Then you can change such Notes by visiting any branch of commercial bank. According to the guidelines by the RBI, a person can change 20 Notes worth up to maximum of Rs. 5000 in a day, without any charge. But if you are changing Notes more than 20 Notes or worth more than Rs.5,000, then banks have the right to impose service charge on you for this service.
What are the rules for more mutilated Notes?
If you have a Note that is divided in 5 pieces, then such Notes can also be changed, but for this facility, you will have to go to the RBI's non-Chest branches.

Where do Printing of Security Papers, Notes and Minting take Place in India?
The officer sitting in the branch will try to add torn Notes and if he succeeds in adding them correctly then he will replace those mutilated Notes from new Notes without any charge. But if the sitting officer could not succeeds in adding these Notes; then the old Notes will not be replaced immediately and the officer will return the amount to the depositor within 30 days.

image source:Postcard New
If there are more than 5 pieces of a Note or the value of ruptured Notes is more than Rs. 5000, then all Notes will have to be sent to the currency chest and depositor will have to wait for 30 days to get the new Notes of the equal value.
What is a Currency Chest?
Currency chests are branches of selected banks authorised by the RBI to stock rupee Notes and coins. The Central Bank advises the Centre on the number of Notes to be printed, the currency denominations, security features and so on. Currency Chest supplies bank Notes to the nearby branches of commercial banks situated in that area.

(workers deposing Currency Notes in a currency chest situated under the SBI branch)

Image source:Business Line
What are the rules for depositing coins in the Banks?
According to the RBI's instructions, if you have so many coins of 1 rupee denomination then you can deposit coins worth up to Rs. 1000 in the bank in a single day. If you want to deposit 50 Paise coins; rules for this conversion is a bit different as compare to one rupee coin. In a single day you can deposit only 20 coins of 50 paise.
So if you have a lot of coins, soiled and old Currency Notes with you then just go the nearest branch of any Commercial Bank and convert your money for the right value.

How currency and coins are circulated in the Indian economy by the RBI

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