RBI has said in one of its guidelines that the bank cannot refuse to exchange mutilated or soiled notes. All banks will exchange mutilated and dirty notes of people in every branch and this will be done with all the customers.
People get worried as soon as mutilated notes come out of the ATM. There is only one question, what to do now? It is also true that torn notes often come out of ATMs. When given to a shopkeeper, he refuses to accept it.
If this ever happens to you then don’t panic at all. You can easily replace mutilated notes. RBI rules clearly state that if the ATM card comes out mutilated then the bank cannot refuse to replace it. There is no lengthy process in the bank to exchange notes. Can be changed in minutes.
Take the torn note taken out from the ATM to the bank with which the ATM is linked. You will have to go there and write an application. In which you will have to mention the date, time of withdrawal of money and the name of the ATM from which you have withdrawn the money. A copy of the slip issued from the ATM also has to be attached with the application. If the slip is not issued, then information about the transaction details received on the mobile will have to be given.
As soon as you give all the details to the bank, you will be given the other notes in exchange immediately. In April 2017, RBI has said in one of its guidelines that the bank cannot refuse to exchange mutilated or soiled notes. All banks will exchange mutilated and dirty notes of people in every branch and this will be done with all the customers.
This rule of SBI
Regarding mutilated notes, the country’s largest bank State Bank of India (SBI) says that the quality of the notes in the bank is checked through state-of-the-art note sorting machines. Due to which the possibility of getting mutilated/torn or damaged notes is negligible. Despite this, if the customer gets such notes from the ATM, he can exchange them in any branch of the bank.
RBI had said in a circular in July 2016 that if banks refuse to exchange bad notes, they will be fined Rs 10,000 and this applies to all branches of all banks.
According to RBI, the responsibility of removing bad or fake notes from ATM lies only with the bank. Not even of the agency which inserts the notes in the ATM. If there is any defect in the note, it should be checked by the bank employee. If the serial number, Gandhiji’s watermark and the Governor’s oath are visible on the note, then the bank will have to change the note.
RBI rules regarding mutilated notes
From time to time, RBI keeps issuing circulars regarding mutilated notes. You can easily get such notes exchanged at any bank branch or Reserve Bank office. According to the rules of the Reserve Bank, a person can exchange a maximum of 20 notes at a time, the total maximum value of these notes should not exceed Rs 5,000.
However, in some circumstances the notes cannot be exchanged. According to the rules of the Reserve Bank of India, notes cannot be exchanged if they are badly burnt or torn to pieces. Such notes can be deposited in the issue office of RBI only.