RBI: What if mutilated notes come out of ATM, can it be replaced? Know the rules

Unified Payment Interface (UPI) After the growth of the UPI system, even though cash transactions have reduced compared to before, cash is still being used for purchases and transactions at many places. You need cash for many tasks of daily life. You can easily get cash through an ATM, but sometimes while withdrawing money from an ATM, some notes come mutilated and damaged, this must have happened to you at some time or the other.

If mutilated and damaged notes come from the ATM, what to do in this situation, are these notes valid the biggest question is what to do if most of the notes come mutilated in a big transaction. Let us know what is the rule of the Reserve Bank of India (RBI) for these circumstances.

Banks cannot refuse to exchange notes
RBI says, that if you get mutilated notes from an ATM, you can easily go to the bank and exchange them. RBI says that all banks, whether government or private, exchange mutilated or dirty notes without any hassle in their branches. If the bank refuses to exchange the note, it may also be fined.

What do RBI guidelines say?
In April 2017, RBI said in one of its guidelines that banks cannot refuse to convert their currency. Take the torn note taken out from the ATM to the bank with which the ATM is linked. After going there, you will have to mention the date, time of withdrawal of money, and the name of the ATM from which you have withdrawn the money in an application.

What needs to be done next?
A copy of the slip issued from the ATM also has to be attached to the application. If the slip is not issued, then information about the transaction details received on the mobile will have to be given. With these details, you can easily get mutilated notes replaced. RBI had said in the circular that if banks refuse to exchange bad notes, they will be fined Rs 10,000.

It is important to keep these things in mind
According to the rules, a person can exchange 20 notes once, the total maximum value of these notes should not exceed Rs 5,000. Notes cannot be exchanged if they are badly burnt or in pieces. Only those notes are exchanged which come out torn due to some reason from the ATM.

(PC: Pixabay)