Broken and bad currency notes can be exchanged at any bank, full refund will be given
You don't have to worry if you have an old torn note that no shopkeeper or other person is taking. You can easily change such currency notes by going to any nearest bank. The RBI has created three categories for converting currency notes. Under this category various types of demagnetized notes are kept. The refunds on these notes vary by category.
There are three categories of bad notes
Imperfection notes
Under this category comes a note on which the information printed is diminished by falling water or repeatedly going from one hand to the other.
Muted notes
Under this category comes a note that is broken and you have all the pieces.
Mismatched notes
Under this category comes a note that is torn and made with different pieces of note.
How much refund will I get?
The largest piece of note worth Rs 50 or more for a mutated category note will get a full refund if its size is more than 80% lighter. But if the largest portion is between 40% and 80%, only half of the note's value will be refunded on the exchange.
Also, if the largest portion of the note is less than 40%, there will be no refund. However, a full refund if the note is in two pieces and both pieces are 40% or larger of its size.
Will get But in case of currencies valued at Rs 20 or above, 50% of the note size will be deducted.
If the print of the note with the Impact category is not too bad and the bank officer is satisfied that the note is not a fake, then according to the meutillated category the note will get refund based on the size of the note.
On the other hand, in the case of mismatched category, both pieces of note worth more than 50 rupees will be treated as separate notes and will be refunded accordingly. Refunds received under this category will be deducted at the size of this note.
Keep these things in mind
A maximum of 20 notes or less than 5000 rupees can be changed in one day. Refund will be given within thirty days if more happens. In addition, in this case the bank may charge a fee.
If you wish to replace a note that has been completely decayed or burnt, or is joined in such a way that it cannot be separated from one another, the bank may refuse to change such note. Moreover, the bank may refuse to change the note even if the bank feels that the note has been intentionally malfunctioned.