All of us may have at least once got bank-notes that are torn or soiled. Have you ever wondered what is done with such currencies? Let’s tell you.
As per the rules set by the Reserve Bank of India or RBI, such currencies can be exchanged in any bank even if you don’t have an account there.
The banks which accept these notes will later submit them to the RBI. The central bank would then categorize these notes. Some of them are reissued in good shape. But some others, which cannot be repaired, are cut into tiny pieces so that they never get back into circulation.
This happens in the case of coins too. The reusable ones are issued again. The others are melted.