Torn Rs 2000, Rs 200 notes may get you just half their value - Check new RBI rules
The Reserve Bank of India has tweaked norms for the exchange of mutilated currency notes following the introduction of Rs 2,000, Rs 200 and other lower denomination currencies
The Reserve Bank of India has tweaked norms for the exchange of mutilated currency notes following the introduction of Rs 2,000, Rs 200 and other lower denomination currencies. Since demonetization in November 2016, the central bank has introduced Rs 200 and Rs 2,000 notes. Smaller notes of Rs 10, Rs 20, Rs 50, Rs 100 and Rs 500 have also been introduced. As per the new rules, people can exchange banks 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.
RBI has amended the Reserve Bank of India (Note Refund) Rules, 2009, to enable the public to exchange mutilated notes in Mahatma Gandhi (New) series, which are smaller in size compared to the earlier series. the RBI had said that the new rules have come into force with immediate effect. "We further inform that there is a change in the minimum area of the single largest undivided piece of the note required for payment of full value for notes of rupees fifty and above denominations...," the RBI said.
As per the new rules, people may end up with the only half of the value of their torn or mutilated Rs 200 and Rs 2000 notes if they don't meet the conditions explained in the notification.
Why the tweak
The 2009 rules were amended as they did not apply to Rs 2000 and Rs 200 notes because of their smaller sizes. Moreover, The absence of regulations was making people hesitate in accepting the new notes even with some small deformities. The new rule clearly spells out the conditions under which people can get the full or partial refund for their mutilated notes.
What the new rules say
For the full refund on a damaged or torn Rs 2000 note, its single largest piece must have a minimum 88% undivided area of the original dimension of the notes. 44% is required for the getting half the value of the note.
For the full refund on torn Rs 200 notes, the single largest piece must measure 78% of the original dimension. Similarly, it should measure 39% for half-refund. (Check official tables above)