RBI has modified norms for exchange of mutilated notes following the introduction of Rs.2,000, Rs.200 and other lower denomination currencies.
Public can exchange mutilated or defective notes at RBI offices and designated bank branches across the country for either full or half value, depending upon the condition of the currency.
Making amendments to the Reserve Bank of India (Note Refund) Rules, 2009, the central bank said this has been done to enable the public to exchange mutilated notes in Mahatma Gandhi (New) series, which are smaller compared to the earlier series.
These rules have come into force with immediate effect.
“We further inform that there is a change in the minimum area of the single largest undivided piece of the note required for payment of full value for notes of rupees fifty and above denominations…,” the RBI said