You can take your scarred bank note into any bank branch, credit union or building society, according to the RBA. At these places, you can file a damaged-banknote claim. You'll need to bring your damaged notes in an envelope or sealable bag with details about the contamination on the outside.
Under regulations issued by the Department of the Treasury, mutilated United States currency may be exchanged at face value if: More than 50% of a note identifiable as United States currency is present.
Many stores and merchants will not take torn or drawn-on bills, and even vending machines struggle to take heavily wrinkled ones. The good news is that even if a bill is torn in half, you can tape them together and exchange them at a Federal Reserve bank for fresh notes, as long as the serial numbers match.
Take any damaged notes to your bank or ADI for assessment and reimbursement of the value of the note. Incomplete and unfit notes can be assessed on the spot but badly damaged or contaminated notes will need to be sent to the Reserve Bank for assessment.
If you have damaged or mutilated currency, or need currency replaced, contact the Bureau of Engraving and Printing. If you have currency you suspect is counterfeit, contact your local Secret Service Field Office. For questions about coins, please contact the U.S. Mint.
Take your money to be replaced at your local bank if damages are not too extensive (minor tears, stains, soilage, etc.) Send any bills that have been extremely mutilated (burns, chemical stains, extreme tears, etc.) to the Bureau of Engraving and Printing along with a letter explaining the damage.
You can use your cash as is if a corner is missing. If it's ripped into two pieces, tape them back together and take the bill to a bank, where they will make sure the serial numbers on both sides of the note match and give you a new one.
Every bank is given a set of "grids" by the RBA that can determine how much a damaged banknote is worth. If you only have half a $20 note, well then you've only got $10. This is roughly how it pans out: If less than 20 per cent of the banknote is missing: Full face value is paid.
In most cases the banks will only reimburse you with the face value of a damaged banknote if you still have at least half of the banknote.
Just as the Fed is responsible for placing cash into circulation, it takes unfit currency out of circulation. The definition of unfit currency, from the Federal Reserve System's Cash Product Office, is a “note that is not suitable for further circulation because of its physical condition” due to being: torn.
If one comes across a note that is believed to be unfit to remain in circulation, it is possible to have your damaged currency exchanged at your nearest bank. Unfit notes are removed from circulation and taken to the Federal Reserve Bank in St. Louis where they will be shredded, recycled, or made into compost.
As per the latest RBI guidelines, anybody who has mutilated notes can exchange them from the nearest central bank regional office. Anybody who has mutilated currency notes can visit the central bank regional office and deposit the notes.
Soiled notes are never put in ATMs as the machine will get stuck up . Only reissuable good notes are put in ATMs .
How to Redeem Mutilated Currency. Mail or personally deliver your mutilated note to the BEP. Include a legible letter stating the estimated value, your contact information, and an explanation of how the currency became mutilated.
Mutilated currency is currency which has been damaged – to the extent that: (1) one-half or less of the original note remains; or (2) its condition is such that its value is questionable.
Examples include burned, buried or water-damaged currency.
Credit institutions and post offices shall accept such incomplete or damaged banknotes the surface of which is smaller than 50% of the original surface with no payment made and forward them to the MNB for the purpose of withdrawal and destruction.
Soiled and mutilated notes can be exchanged in any public or private branch of the bank. The notes which are extremely burnt or torn cannot be exchanged.
Subject to the Reserve Bank's Claim Requirements, the Reserve Bank pays value for badly damaged/contaminated banknotes based on visual assessment and, at its discretion, other processes. If part of a banknote remains, the value is determined on the same basis as for incomplete banknotes.
The Reserve Bank recommends that people take damaged banknotes to their bank or another authorised deposit-taking institution (ADI). These institutions are encouraged by the Reserve Bank to accept all claims.
It is an offence under the Crimes (Currency) Act 1981 to intentionally deface, disfigure, mutilate or destroy Australian banknotes without the consent of the Reserve Bank or Treasury. It is also an offence to sell banknotes knowing them to have been defaced, disfigured or mutilated.
If you have damaged banknotes, you can submit a damaged banknote claim. The Reserve Bank will determine the value of the damaged banknotes as per the Damaged Banknotes Policy and reimburse you the assessed amount. Do not include any coins or foreign banknotes, as the Reserve Bank is unable to process them.
Also, apart from the one and a half rule of damaged money, money that is dirty, torn or defaced can also be changed at the bank. Replacing damaged money is easier than replacing mutilated money. All you have to do is to take the damaged money to the bank, and they will replace the money for you.
There are two probable reasons. First is that a bill that old might be too beat up and worn out for the machine to accept. Second is that large bills from before 1990 lack any modern security features, so the machine might think the bill is fake.