A mutilated note is a pariah of the currency world. Nobody wants it. Be it the shopkeeper, autowallah, chai ki dukaan, vegetable seller or the cigarette shop owner, none accepts a mutilated or a badly soiled note. As a result, many of us try different tricks to hand over such notes. We turn ‘charitable’ and give the note to beggars. Some try deception and slip such notes at the metro counter when the ticketing official is busy on the phone. But is a mutilated currency note worth zero as many might believe? RBI has come out with new rules which assign the value of mutilated notes.
Less than fifty
RBI has two separate rules for mutilated notes. The value of a mutilated note of less than rupees fifty denomination may be refunded in full. Yes, in full! However, this is subject to conditions. The full refund will happen if the undivided area of the single largest piece of the note is as specified in the rules. For instance, an old Rs 10 note normally has an area of 86.31 square cm. The minimum area required for full value refund is 44 square cm. In the Rs 20 note (new MG series), the minimum area in square cm has to be 41 as against the normal note size of 81.27 square cm.
Refer to the below table – Under Rupees Fifty
|Denomination||Area (in cm2 )||Minimum area (in cm2 ) required for payment of full value*|
|10 (new MG series)||77.49||39|
|20 (new MG series)||81.27||41|
|*Indicated as the next complete higher square centimetre after half of the area of the notes in a particular denomination|
More than fifty
The rules governing mutilated notes of more than rupees fifty are different. There are minimum area stipulations. Don’t worry if you can’t get full value. There are size rules for getting half value refund as well.
For instance, a standard Rs 50 note (new MG series) has an area of 107.31 square cm. If the mutilated note is 86 square cm, you can have full value. If the area is 43 square cm, then you can get 50% of the value or Rs 25.
Similarly, a Rs 2,000 note has a standard size of 109.56 square cm. If the mutilated note is at least 88 square cm, you can have full value, i.e. Rs 2000. If it is a minimum 44 square cm, then you can still pocket half the value, which is Rs 1,000.
Refer to the below (table 2) – Above rupees fifty
|Denomination||Area (in cm2 )||Minimum area (in cm2 ) required for payment of full value*||Minimum area (in cm2 ) required for payment of half value #|
|50 (New MG Series)||89.1||72||36|
|100 (New MG Series)||93.72||75||38|
|* Rounded off to the next complete higher square centimetre of 80% of the area of the notes in a particular denomination|
|# Rounded off to the next complete higher square centimetre of 40% of the area of the notes in a particular denomination|