Damaged banknotes in India
Torn, burned, washed, or missing a piece, what it is still worth.
Is a damaged note still worth its face value?
Usually yes. A damaged banknote is not automatically worthless. Any bank branch; RBI Issue Offices for severely damaged notes assesses damaged notes individually rather than applying a fixed surviving-area rule. Free at the counter; service charges may apply to bulk tenders credited later.
Where to take it
| Condition | Where to go |
|---|---|
| Lightly damaged | Every bank branch must accept soiled, mutilated and imperfect notes for exchange on all working days. Payment Banks and newly licensed Small Finance Banks may do so at their option. |
| Badly damaged or incomplete | Any bank branch; RBI Issue Offices for severely damaged notes |
How it works
Under the Note Refund Rules, 2009 (amended 2018): up to 20 soiled notes worth at most Rs 5,000 per day can be exchanged over the counter, and up to 10 mutilated or imperfect notes. Larger tenders are accepted against receipt and credited within 30 days. Notes that are extremely brittle, badly burnt, charred or inseparably stuck together cannot be handled by a bank branch and must be taken to the nearest RBI Issue Office.
Worth knowing
Scribbled or stained notes remain legal tender, though banks treat them as unfit for reissue. RBI states that no one is entitled to recover the value of a damaged note as a matter of right - it refunds as a matter of grace. RBI neither buys nor sells old notes, and warns the public about scams offering to.
Practical advice
- Do not tape, clean, flatten or otherwise "repair" a damaged note, handling it can destroy evidence the examiner needs.
- Keep every fragment, however small, and store them exactly as found.
- If a note is contaminated or came out of a fire, say so when you submit it; there are handling procedures for that.
- Never assume a damaged note is worthless and throw it away.
Cash declaration rules for India →
Sources: as of 22 September 2026. General information, not legal or financial advice; the issuing authority decides each case.
- Exchange of Banknotes - Reserve Bank of India · retrieved 22 September 2026
- Customs Clearance of Passengers At a Glance, Central Board of Indirect Taxes and Customs · retrieved 22 September 2026