Author Topic: RBI Sets New Rules for Exchanging Mutilated Banknotes  (Read 404 times)

0 Members and 1 Guest are viewing this topic.

Offline Bimat

  • आदित्य
  • Global Moderator
  • Honorary Member
  • *****
  • Posts: 11 235
  • Mumbai, India.
RBI Sets New Rules for Exchanging Mutilated Banknotes
« on: September 09, 2018, 07:37:45 AM »
Returning torn Rs 200, Rs 2,000 notes may get only half their value! Here's what new RBI rules say

BusinessToday.In       
Last Updated: September 8, 2018  | 16:59 IST

While exchanging a damaged Rs 2,000 or Rs 200 note, you may get nothing or only half their value in refund depending on how badly the note is mutilated or soiled. The Reserve Bank of India has amended its guidelines on exchange of mutilated or torn currency notes which explain how much refund they will be eligible for depending on their state. The new rules will govern the terms of exchange for damaged Rs 200 and Rs 2,000 notes, as well as the Rs 10, Rs 20, Rs 50 and Rs 100 notes released under the new Mahatma Gandhi series.

The earlier rules for exchanging damaged currency notes did not apply to Rs 200 and Rs 2,000, and the notes released under the Mahatma Gandhi series due to their smaller sizes. This lack of regulations made people hesitant to accept new high denomination notes with even minor deformities, which led to accumulation of such notes. To counter this problem, the RBI has come out with refreshed rules to include the new notes launched post-demonetisation.

The new rules by RBI stipulate that the single largest piece of a damaged or torn Rs 2,000 note must have a minimum undivided area of 88 per cent of the note's original dimension for a full refund and 44 per cent for getting half the value back. In case of the Rs 200 note, the single largest piece or undamaged area must measure 78 per cent of the original note for full refund and 39 per cent for half refund.

For exchanging a mutilated Rs 100 note bearing the new Mahatma Gandhi serial number, the full value will be refunded if the single largest piece is 75 per cent of the original size, and half the value will be returned if it is 38 per cent. For full refund on a mutilated new Rs 50 note, the single largest piece has to be 72 per cent of the original surface area of the note, and 36 per cent for half the value.

If the notes are damaged beyond the stipulated limit RBI has set earlier, the bearers may even get nothing in return for exchanging them.

The new rules have been put into effect right after the gazette notification to this effect was published earlier this week. People can exchange mutilated or defective notes at RBI offices and designated bank branches across the country for either full or half value, depending upon the condition of the currency.

Source: Business Today
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Bimat

  • आदित्य
  • Global Moderator
  • Honorary Member
  • *****
  • Posts: 11 235
  • Mumbai, India.
RBI Sets New Rules for Exchanging Mutilated Banknotes
« Reply #1 on: September 09, 2018, 07:48:06 AM »
So far, only getting new notes was difficult. Now, even getting them exchanged is difficult! ::) ;D

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Figleaf

  • Administrator
  • Honorary Member
  • *****
  • Posts: 28 057
Re: RBI Sets New Rules for Exchanging Mutilated Banknotes
« Reply #2 on: September 09, 2018, 08:49:05 AM »
For the sake of comparison, in the Netherlands, you get full value for anything showing the whole serial number. Makes sense, because you can register that and refuse payment for other parts of the same note. Then again, the problem is not worn notes but rather notes that were accidentally burnt, mutliated or "drowned".

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.