Can such banknotes be exchanged for value?
Yes. All bank branches have been authorised to provide the facility of exchanging soiled banknotes. How much value would one get in exchange of soiled or mutilated banknotes? Soiled banknotes are exchanged full value. Payment of value of mutilated banknotes is governed by the Reserve Bank of India (Note Refund) Rules, 1975. These Rules have been framed under Section 28 of the Reserve Bank of India Act, 1934. The public can get value for these banknotes as a matter of grace as laid down in the Rules, after adjudication. Currently, provisions exist for paying either full, half or no value as far as banknotes in the denomination for Rs.10 and above are concerned; as regards Re.1, Rs.2 & Rs.5, a tenderer can get either full or no value depending upon the condition of the banknote.
