Utility: Can mutilated notes taken out of ATM be replaced? Know what the rules are!

PC: ABP News

Although the rise in online transactions has led to a decline in cash exchange, cash transactions are still taking place in many places. Cash is required for many tasks in daily life. We withdraw cash through ATM. But sometimes torn notes can also be found in ATMs. Then what to do in such a situation? Can these notes be redeemed or not? What to do if a lot of notes get torn in a big transaction? What are the rules of the Reserve Bank in this regard? According to RBI, if you get torn notes from an ATM then you can go to the bank and exchange them. RBI says that notes can be exchanged without any hassle in the branches of government or private banks. If the bank refuses to exchange the note, the bank may also be fined.

What are the guidelines of RBI?

In April 2017, RBI had said in one of its guidelines that banks cannot prohibit the exchange of mutilated or torn notes. Take the torn notes from the ATM to the same bank from where they were withdrawn. While writing the application form, note down the date and time of return. Also, write the address of the ATM from which the withdrawal has been made.

pc: Jagran

What to do next?

A copy of the slip issued by that ATM will also have to be attached to the application. If you cannot wake up, then write down the details of the transaction on your mobile phone. With this information, you can easily replace torn notes. The RBI circular states that if the bank refuses to replace the torn notes, a fine of up to Rs 10,000 can be imposed on the bank.

pc: Jansatta

Keep in mind that according to the rules, a person can change 20 notes at a time. The total value of these notes should not exceed Rs 5000. Badly burnt, torn notes cannot be replaced. RBI has said that only torn notes will be exchanged in ATMs.