What Is done With Old Torn Notes? – Often we keep getting such notes which are somewhat mutilated. Such notes which we go to give again to a shopkeeper, many times he also refuses to take them.
This happens because at that time the condition of that note is such that no one wants to take it again. So in such a situation what happens to those mutilated and old notes that no one wants to take?
Can they be exchanged for a new note? Let us know the answers to these questions.
What Is done With Old Torn Notes?
If you have any torn notes of 5, 10, 20, or 50 and it has been broken into two or three pieces. So, under the Note Refund Rule 2009 of the Reserve Bank, torn notes can be replaced by the bank.
That is, if you have any torn note or it has been burnt to some extent, then in such a situation the bank replaces the notes.
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But if you have more torn Notes then what to do?
But if you want to exchange a lot of notes i.e. more than 20 notes together in 1 day, or the total value of the old or mutilated notes given by you is more than ₹5000. Then, you will have to pay the bank for this. Transaction fees will have to be paid.
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What does the bank do with these mutilated notes?
The Reserve Bank of India (RBI) takes the responsibility of reprinting those mutilated notes. Earlier it was done in such a way that all the old notes were burnt.
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But nowadays they are cut into small pieces by putting them in a machine. And then, they are again given the form of paper through a process. Other things are made from that paper and it is sold again in the market.