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What To Do If ATM Dispenses Mutilated Or Torn Notes? Read Here

While withdrawing money from an ATM, many times mutilated notes come out.

Published: November 13, 2022 5:22 PM IST

By Tahir Qureshi

ATM, Mutilated notes, Torn Notes, Reserve Bank of India, RBI, Reserve Bank, Bank
What To Do If ATM Dispenses Mutilated Or Torn Notes? Read Here

ATM Dispenses Mutilated Or Torn Notes: While withdrawing money from an ATM, many times mutilated notes come out. Seeing the torn note, people get tense and they start thinking that what will happen to this note now? Because shopkeepers flatly refuse to accept mutilated notes. But there is no need to panic in such cases. If you have mutilated notes, you can easily get them changed by going to the bank. There is no charge of any kind for this.


The Reserve Bank of India (RBI) has made rules to replace the mutilated old notes from ATMs. As per the rules, the bank cannot refuse to exchange the mutilated notes withdrawn from the ATM. You can easily change it. For this, you do not have to go through any lengthy process. In July 2016, the Reserve Bank had said in a circular that if banks refused to exchange bad notes, they could be fined Rs 10,000. This rule is applicable to the branches of all banks.

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According to the Reserve Bank, if a bad or fake note comes out from the ATM, then it is the responsibility of the bank. If there is any kind of defect in the note, then it should be examined by the employees of the bank. If the serial number, watermark of Mahatma Gandhi, and the oath of the Governor are visible on the note, then the bank will have to change the note in any case.


The Reserve Bank keeps issuing circulars from time to time regarding mutilated notes. You can easily get such notes exchanged at any bank branch or Reserve Bank office. However, there is also a fixed limit to exchange notes. According to the rules of the Reserve Bank, a person can get a maximum of 20 notes exchanged at a time. Also, the total value of these notes should not exceed Rs 5000. However, badly burnt, mutilated notes cannot be exchanged. Such notes can be deposited in the Issue Office of the Reserve Bank only.


To replace the mutilated notes that came out of the ATM, you have to go to the bank from whose ATM the notes came out. You will have to write an application after going there in which you will have to write the information about the date, time, and place from where the money was withdrawn. After this, along with the application, the transaction-related slip from the ATM will also have to be attached. If the slip has not been issued, then the details of the transaction received on the mobile will have to be given. After this, your notes will be changed by the bank.

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