Soiled and Mutilated Notes

Money is an important factor in our lives thus no one wants to waste their money, so when the notes get destroyed people want to make those notes valuable so they exchange them with new notes. A note which gets dirty over time and is torn is called a soiled note and when the note is split into more than two pieces or is torn is called a mutilated note. 

Soiled and mutilated notes can be exchanged with new notes by the bank. 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.

What Are Bank Notes?

Everyone on this earth is in a race to earn more money. The money is needed to have a place to live, to have something to eat, for education, or any kind of luxuries. Banknotes licensed by the government of the country are the form of money. Any type of bill, paper, or money made by the bank or a licensing authority is called a banknote. These banknotes are currency made by the government for the exchange of items with money. Nothing can be bought without paying thus banknotes are the means of exchange.

The banknotes are made with a watermark and a security strip to check the originality of the note.

Uses: 

• It is used as a medium of exchange between people, companies, or banks.
• It can also be used for storing value.

Advantages:

• It is an easy means of offline transactions.
• It does not involve any confusion regarding the value of the currency.
• Paper currency or rather known as banknotes is easier to store rather than in the form of coins or some type of physical value.

Disadvantages:

• Since the bank notes are made of paper thus they are not strong enough and have a high chance to be soiled and to be torn.
• With banknotes, there are higher chances of fake currency to be made which looks the same as the legal currency.

Soiled Notes

The notes which are dirty and are torn by normal circumstances are known as soiled notes. These notes also refer to the notes which are joined together of the same value after being torn. These notes can be exchanged by public or private banks with an exact value. The notes that are extremely burned cannot be exchanged. These notes have a high chance of getting exchanged and not being rejected.

Mutilated Notes

The notes which have been cut into multiple pieces or a part is missing are known as mutilated notes. The missing part of the torn part should not belong to the number or any other important values on the note such as – the watermark, Ashoka Pillar Emblem, Mahatma Gandhi’s portrait, etc, and then it can be exchanged otherwise not. These notes are exchanged with a decreased value from their original value. These notes have fewer chances of getting exchanged and high chances of being rejected.

Difference between Soiled and Mutilated Notes

The difference between soiled and mutilated notes is as follows: –

• Soiled Notes are the torn notes which are pieced together whereas Mutilated Notes have a missing piece or it is torn into multiple pieces.
• Soiled notes can be exchanged with new notes with the same value whereas Mutilated Notes will not get the exact value in return for new notes.
• Soiled notes have more chances of exchange than mutilated notes.

Soiled and Mutilated Notes Which Cannot Be Exchanged

The notes which have been burnt or breakable, the ones which have some written content on them, which are purposely cut, torn and damaged and the notes with ‘pay’ ‘paid’ or ‘reject’ stamps on it can’t be exchanged. The notes which have a slogan or a message written on them also cannot be exchanged.

Exchange Policies for Soiled and Mutilated Notes

1. When notes are exchanged in small numbers: When the notes exchanged by a person are till 20 pieces up to 5000 per day then the banks should exchange them free of cost.
2. When notes are exchanged in bulk: When the notes exchanged by a person are more than 20 pieces exceeding 5000 per day then banks do not need to accept them, the exchange is done by receipts by banks.
3. No forms are needed to be filled for the exchange of these notes.
4. The notes can be exchanged in any public or private branch of the bank.

Conclusion

Bank Notes are of different types which include soiled notes and mutilated notes. Banknotes have their advantages which include that it is an easier means of transaction rather than using coins. Its disadvantages are that these are easily torn.

Soiled notes refer to the dirty and torn notes which are joined together whereas mutilated notes refer to the torn notes which are in multiple pieces and the ones having a missing part. They can be exchanged with the new notes from the banks whether they are public or private banks. The notes which are purposely damaged cannot be exchanged.