Most ATM cassettes are filled with machine-sorted notes, but a torn, taped or badly soiled note still slips through now and then. You do not have to accept the loss or argue with a shopkeeper. The Reserve Bank’s rules on note exchange are clear, and they were reissued as a single master direction on 1 April 2026 (RBI/DCM/2026-27/395, updated 1 September 2026).
The basic rule: any branch, any person
Every bank branch must offer note exchange to its own customers and to everyone else. For small batches over the counter you do not need an account at that bank. You can walk into the nearest branch of any bank with the damaged note.
Soiled notes vs mutilated notes
| Soiled note | Mutilated or imperfect note | |
|---|---|---|
| What it means | Dirty, worn or slightly torn, but in one piece | A piece missing, or made up of more than one piece |
| Over the counter | Up to 20 pieces and ₹5,000 a day, free | Up to 10 pieces |
| Larger batches | Taken against a receipt, paid within 7 days; a service charge may apply | Above 10 pieces or ₹5,000, taken against a receipt |
| Cost | Free within the counter limit | Free |
For larger batches the bank will ask for account details so it can credit the value electronically.
Notes the branch will not take
- Brittle, badly burnt, charred or stuck-together notes. These cannot be handled at a branch and are referred to an RBI Issue Office.
- Notes with political or religious slogans written on them.
- Deliberately cut or altered notes.
What to do when the ATM gives you a bad note
- Check notes at the machine, under the cabin light, before you leave. A problem spotted in the cabin is easier to explain.
- Keep the ATM receipt or the SMS, and note the ATM ID and time.
- If the ATM is in a branch that is open, go in straight away. Otherwise use any branch: the exchange rules above apply whichever bank’s ATM gave you the note.
If you suspect a fake
Every note tendered for exchange or credit is checked by machine. A note found to be counterfeit is not returned to you and is not destroyed in front of you; the bank follows the RBI’s separate procedure for counterfeit notes. If you think an ATM gave you a fake, tell the bank immediately with the ATM receipt, rather than trying to spend it.
Coins: the rules people get wrong
- Branches cannot refuse coins or small-denomination notes.
- Coins of 50 paise, ₹1, ₹2, ₹5, ₹10 and ₹20 are legal tender.
- Coins of 25 paise and below stopped being legal tender on 30 June 2011.
Coins cannot go into a cash deposit machine, so the counter is the place for them. For ₹2000 notes, which follow a different route, see ₹2000 notes in 2026.
Common questions
A note was repaired with tape. Is it still accepted?
A note torn into two pieces and joined is treated as a mutilated note. It is accepted if both pieces belong to the same note and no essential feature is missing.
Can a branch tell me to go to my own bank?
Not for an over-the-counter exchange within the limits above. If a branch refuses, ask for the branch manager and note the branch name; refusal breaches RBI instructions.
Branches near busy ATMs: Thrissur · Mysuru · Aurangabad
Last checked: October 2026, against the RBI Master Direction – Facility for Exchange of Notes and Coins (1 April 2026, updated 1 September 2026).
Añadir comentario