However, it has been decided that notes in the denomination of Rs.5 be re-introduced so as to meet the gap between the demand and supply of coins in this denomination. Soiled notes are notes, which have become dirty and limp due to excessive use. Mutilated notes are notes, which are torn, disfigured, burnt, washed, eaten by white ants, etc. A double numbered note cut into two pieces but on which both the numbers are intact is now being treated as soiled note. Soiled notes can be tendered at all bank branches for and exchange obtained.
Full value is payable against soiled notes.
These Rules have been framed under Section 28 of the Reserve Bank of India Act, 1934. The public can get value for these notes as laid down in the Rules, after adjudication. The following notes are not payable under the Note Refund Rules. Non-payable notes are retained by the receiving banks and sent to the Reserve Bank where they are destroyed. All banks are authorised to accept soiled notes across their counters and pay the exchange value.