Damaged notes may fetch just half the price : RBI

If Rs 2000 or Rs 200 currency notes slightly damaged, it may be exchanged at full price, bit if the damage is high, it may fetch just half the price. Or nothing at all, says the new guidelines released by Reserve Bank of India for all notes, which were introduced post note ban or notes which were introduced as part of the Mahatma Gandhi New Series.

With this, the RBI has ended the lack of clarity over the exchange of the Rs 2000 or Rs 200 currency notes, introduced post demonetisation. Till now, there were clear rules for the value of soiled, damaged or mutilated Rs 5, 10, 20, 50, 100 and 500 notes, but the public was facing problems with the exchange of damaged Rs 200 and Rs 2000 notes as the rules for their exchange were yet to be amended.

As per the new Reserve Bank of India (Note Refund) Amendment Rules, 2018, “the undivided area of the single largest piece of the note” for a damaged Rs 2000 note must be 88 square cm for a full refund, and 44 square cm for half refund. The Rs 2000 note is 109.56 square cm in dimension.

For a damaged Rs 200 note, the criteria is 78 square cm for a full refund, and 39 square cm for half refund. The Rs 2000 note was facing poor circulation as there was no clarity on exchange rules for the highest denomination currency. This was leading to the currency notes being ‘hoarded’. The mutilated or defective notes of these two denominations can now be exchanged by the public at RBI offices and designated bank branches across the country. How much you get in exchange will depend on the degree of its damage.

 

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