Do you have a torn note? The bank can not refuse to exchange it, know the RBI Rule

Torn Note Exchange: Many people are worried about torn currency notes. It is difficult to use torn notes that fall out of pocket during financial transactions.

According to the
Reserve Bank of India (RBI), no bank can refuse to exchange torn currency notes. Not only this, with the help of fire you can do welding. If a bank refuses to do so, action may be taken against it. So if you have torn currency notes then you need not worry. You will get the full amount in exchange for the torn note. Learn about RBI guidelines for torn notes.

Solution of torn notes

Many people are upset because of torn currency notes. It is difficult to use torn notes that fall out of pocket during financial transactions. Incomplete notes are often found while withdrawing money from ATMs. People get upset because of such notes. Of course, there is no need to worry if such notes come out of the ATM now. The Reserve Bank of India has come up with a new solution after seeing the plight of the people.

What if a torn note comes out of an ATM?

If a torn note comes out of the ATM, you can contact the bank. The bank will exchange them for notes. Of course, for that, you have to fill the form. In which the time, date, and from which ATM this note came out has to be indicated. You will also need to submit a withdrawal slip. If the slip does not come out of the ATM, then the message on your mobile has to be attached.

What does the RBI rule say?

According to the Reserve Bank of India's rules, a torn note can be taken out of an ATM and taken to the bank. This note is then exchanged. If the bank does not return your note even in such a situation, you can try other solutions. According to the Reserve Bank's Exchange Currency Rules 2017, if you find torn notes, it is the bank's responsibility to exchange them. It doesn't take much time. As per the rules, no bank can refuse to accept torn notes from ATMs. If the bank violates the rules, the bank employee may face action and a hefty fine.

Torn notes can be exchanged at any branch

According to RBI rules, torn currency notes can be exchanged at any bank in the country. You do not even have to go to your branch for this. Banks that refuse to accept such notes may also be prosecuted. However, there are some rules for this. The worse the note, the lower its value.

What is the rule for exchanging torn notes?

If you have low denomination notes like Rs 5, 10, 20, 50 then it is necessary to have at least 50% share in the light. In such a case you will be paid the full value of the currency note. If it is less than 50%, you will not get anything. For example, if you have a torn five rupee note. If you have 50% of this note, the bank will give you a full five rupees in return.

Rule if there are more than 20 torn notes

According to the Reserve Bank, if you have more than 20 torn notes and their value is more than 5,000, you will have to pay a transaction charge on them. Before exchanging notes, make sure that they have security symbols like Gandhiji's watermark, governor's sign, and serial number. If you have all these symbols in your note then the bank will have to exchange the note.

What to do if the note is in several pieces?

The RBI also has a rule for exchanging notes in multiple pieces. The process of exchanging such notes may take some time. For this, you have to send these notes by post to the RBI branch. In which you have to give information like account number, branch name, IFSC code, note value, etc.

What does the Reserve Bank do with such notes?

The Reserve Bank removes such torn notes from circulation. Instead, the RBI is responsible for printing new notes. Earlier such notes were burnt. Now such notes are recycled into small pieces. Paper products are made from these notes. It is later sold in the market.

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