Do banks accept damaged notes?
Lawful holders of
The Reserve Bank recommends that owners of damaged banknotes submit their damaged banknotes to their bank/financial institution. These institutions are encouraged by the Reserve Bank to accept all claims.
Damaged banknotes
We will reimburse you the full amount for genuine notes that have been accidentally damaged (provided there are sufficient fragments or remains). As a general rule, there should be evidence of at least half the note.
Any badly soiled, dirty, defaced, disintegrated, limp, torn or worn out currency note that is clearly more than one-half of the original note, and does not require special examination to determine its value, is not considered mutilated and should be included in your normal deposit.
In the United States, a torn bill can still be considered valid as long as the majority of the bill is intact and identifiable. According to the US Bureau of Engraving and Printing, a bill that is more than half intact can be exchanged for a new one at a bank.
The BEP's Mutilated Currency Division provides free mutilated currency redemption services for individuals and institutions, such as businesses and financial institutions, in possession of United States mutilated currency notes.
Bank of America will continue to accept all currency despite previous reports that claimed the bank and several other major retailers were going to stop accepting damaged $1 bills as part of an effort to crack down on counterfeit currency.
Are you a holder of torn, soiled, damaged currency note? Do no worry, take the note(s) and go to any bank branch. They will exchange the notes and give you fresh currency notes. However the value of the exchange depends upon the condition of the torn, damaged, etc currency notes.
All banks are authorized to accept and exchange soiled banknotes for full value. They shall extend the facility of exchange of soiled/mutilated notes to non-customers also.
Many banks will still accept old notes as deposits from customers. And again, you might be able to pay them into your bank account at the Post Office.
Can I exchange a damaged note at the bank?
You can exchange soiled or defective notes in any banks all over the country although the rules are different when it comes to exchanging notes in small amounts and in bulk.
Subject to the Reserve Bank's Claim Requirements, the Reserve Bank pays value for incomplete banknotes determined as follows: If less than 20 per cent of the banknote is missing: Full face value is paid.
“Mutilated currency is currency which has been damaged to the extent that: one-half or less of the original note remains; or its condition is such that its value is questionable and the currency must be forwarded to the Department of the Treasury for the examination by trained experts before any redemption is made.”
"When people have a damaged banknote in their possession, they can take it to a financial institution and fill in a claims form, which will then be sent to the RBA," says Greg Dicinoski, chief scientist in the note issue department at the RBA. Damaged bank notes sent in to the RBA note issue department.
Individuals, financial institutions, and businesses may contact the Department of the Treasury's Bureau of Engraving and Printing (BEP) if they are in possession of mutilated U.S. currency, meaning that the currency has been damaged to the extent that one-half or less of the original note remains, or its condition is ...
Cash that's dirty, defaced, limp, torn, or worn is considered unfit for circulation. About 85% of these bills can be redeemed. To redeem yours, visit a local bank or credit union.
As long as more than half of the original note is clearly present—and it doesn't take special examination to determine the note's value—a commercial bank can then include the note in its deposit to the Federal Reserve.
While some stores might accept slightly ripped money, most will not take heavily damaged or torn bills. If a bill is significantly ripped, you should take it to your local currency exchange to exchange it.
A mutilated banknote with two-thirds or more of the original note remaining may be paid at full value. A mutilated banknote with less than two-fifths of the original note remaining has no value.
In the United States, you must submit more than half (over 50 percent) of the paper bill intact. This is in part to prevent people from ripping money in half and replacing both halves to get double the money.
What dollar bill won't be accepted?
According to various reports, the dollar bills that will be rejected are all those that fall into the category of “mutilated”, that is, those that have cuts or damaged edges and are discolored. This measure applies to stores and supermarkets such as Walmart, Dollar Tree, Costco, Target and other businesses.
All U.S. currency remains legal tender, regardless of when it was issued.
Criteria for Exchange of Damaged Banknotes
(1) A banknote with two-thirds or more of the original remaining: Exchanged at full face value. (2) A banknote with two-fifths or more, but less than two-thirds, of the original remaining: Exchanged at half face value.
BANKS PUBLIC COUNTER.
All the branches of the Bank will exchange freely soiled/slightly mutilated currency notes and certain other types of mutilated currency notes of all denominations.
The Bureau of Engraving and Printing (BEP) redeems mutilated currency as a free public service.
