Torn Money Exchange : If you go to withdraw money from an ATM and find a mutilated or torn note, there’s no need to panic. RBI regulations state that every damaged note dispensed from an ATM is the bank’s responsibility. This means you won’t lose a single rupee.
The bank must exchange the note. You just need to know the correct method to ensure your money remains safe. Shopkeepers will often refuse to accept a note if it is slightly torn, has a damaged edge, or is slightly chipped. If a torn or mutilated note is returned from an ATM, you will receive its full value. A simple process is required. The RBI states that customers will receive the full value of the damaged note.
So instead of panicking, keep the note safe and take it to the bank. The exchange process is simple. Go to the branch of the bank whose ATM you received the note from. Inform them that the note came from an ATM. If you have the transaction receipt, bring it with you. Even if you don’t, it’s okay. Your record is available in the bank’s system.
The employee will check the note and, if it’s genuine, will refund you the amount. If the note is severely torn, in two pieces, or in very poor condition, you can still exchange it at the bank. Just make sure the note is genuine and the numbers are clearly visible. It’s not advisable to carry a note stuck with tape.
The bank may issue a new note immediately or replace it within a few days. Many people assume that the bank will charge a fee for exchanging a torn note. However, this is not the case. The process is completely free. The bank will replace the damaged note with a new one at no charge.