Some times currency notes are not in a condition to be accepted by any bank. However, this happens under certain conditions and in relation to specific damages. Here is when this happens.
When a political/religious message is written across it
According to Reserve Bank of India (RBI), if you have a currency note across which a political slogan or message is written, it stops being a legal tender and such a note cannot be claimed. This means you cannot get it refunded from the bank. The same applies for notes with religious message written on them.
When it has been cut deliberately
If you’ve deliberately cut a note, or possess a note which was deliberately cut, then too you cannot get a refund on that note. Though, it’s difficult to determine if the note was deliberately cut or not, according to RBI, if a close look reveals mutilation in such a way that it shows extensive consistency in the shape or location of the missing portion of the note, and suggests that it was cut deliberately to commit a fraudulent activity, such a note will not be refunded, especially if such notes are given in large numbers.
When it’s too brittle
Keep in mind that if the notes you plan to exchange are extremely brittle or are extremely burnt, charred or stuck together in such a way that you cannot separate the notes, you cannot exchange them. Your bank will ask you to go to the concerned issue office where your note will be adjudicated under a special procedure as per the regulatory guidelines.
Which notes can be exchanged
You can exchange soiled and cut notes at all banks, provided the note is not in more than two pieces. It’s important that no essential feature of the note is missing and both the pieces are of the same note. The exchange is done free of cost.
How to handle notes
You could abide by RBI’s clean note policy. Do not staple currency notes; do not write or put any kind of marking on a note; do not put a rubber stamp on a note and store them safely.
Keep in mind that you do not have a right to recover the value of any note which is lost, stolen, mutilated (has a portion missing or has more than two pieces) or is imperfect in any way from the government of India or RBI. But to avoid unnecessary hardship in genuine cases, RBI may give a refund for notes as a matter of grace as per the regulations. For more information, visit www.rbi.org.in