Bangladesh Bank has issued a new set of guidelines regarding the exchange of damaged, torn, or defective currency notes.
Under the new policy, customers will receive the full face value of a note if more than 90 percent of it is intact.
Any branch of any bank in the country is now mandated to provide this exchange service. The move comes as the central bank recently ceased its direct note-exchange services, shifting the responsibility to commercial bank branches to ensure public convenience.
Customers will receive the full exchange value immediately from any bank branch.
If less than 90 percent is found intact, the exchange value will not be paid instantly. Customers must submit an application through the bank branch. The central bank will review the claim and decide on the refund amount within a maximum of 8 weeks.
Burnt Notes: Commercial banks are not authorized to process burnt notes. Customers must apply directly to any office of Bangladesh Bank for a decision after a thorough verification.
Dirty Notes: Extremely soiled or dirty notes are classified as "Claimable" and will follow the application process rather than instant refund.
Mandatory Service for All Bank Branches: The central bank has warned that every branch of every bank must provide services for non-reissuable, torn, or defective notes.
Each branch must display a visible notice stating that "Exchange services for torn/defective and claimable notes are provided here."
Bangladesh Bank stated that disciplinary action will be taken against any bank branch that shows reluctance or refuses to provide this service.
The new guidelines, which follow the "Note Refund Regulations" issued recently, categorize currency into five types, such as reissuable- fit for circulation, non-reissuable- unfit for further circulation but exchangeable, mutilated or defective-torn or damaged, claimable-notes with 90 percent or less remaining or excessively soiled, burnt notes-specifically handled by the central bank.
Warning Against Fraud: The circular also included a stern warning against fraudulent activities. If a customer attempts to exchange counterfeit notes or a note created by pasting parts of different notes together, legal action will be taken against them in accordance with existing laws.
Source: UNB