A banknote depositing and dispensing machine which is configured to perform banknote depositing and dispensing processes, comprising: an inlet configured to receive a banknote to be deposited; an outlet configured to eject a banknote to be dispensed; a recognition unit which is configured to recognize a denomination and fitness of a banknote and to recognize a kind of an unfit banknote including, in addition to a stained banknote, at least any one kind of thickened banknote, deformed banknote, and fatigued banknote; a plurality of denomination-specific storing and ejecting units which are configured to store the banknote to be deposited by denomination according to a result of recognition by the recognition unit in a depositing process, and are capable of ejecting the stored banknote to be transported to the outlet in a dispensing process; characterized in that the banknote depositing and dispensing machine further comprises escrow unit which is configured to escrow a banknote; wherein in the depositing process, a banknote recognized as a normal banknote and a banknote recognized as an unfit banknote by the recognition unit are transported to the escrow unit, and further, transported from the escrow unit to the denomination-specific storing and ejecting units, and an abnormal banknote recognized as unrecognizable by the recognition unit is returned to the outlet, wherein in the dispensing process, a control unit is configured to transport a banknote recognized as a normal banknote by the recognition unit to the outlet, to judge whether a banknote recognized as an unfit banknote is allowed to be dispensed to the outlet based on the kind of unfit banknote, and to set only the stained banknote as allowed to be dispensed to the outlet and to set the kind of unfit banknote other than the stained banknote as not allowed to be dispensed to the outlet, and wherein in the dispensing process, when a banknote is dispensed from the denomination-specific storing and ejecting unit storing normal banknotes of a plurality of denominations in a mixed state, in a case where a banknote of a denomination unnecessary to be dispensed is ejected from the denomination-specific storing and ejecting unit, the control unit is configured to transport the banknote of the denomination unnecessary to be dispensed, to the escrow unit, and after a predetermined quantity of banknotes to be dispensed is ejected to the outlet, and the control unit is configured to transport the banknote of the denomination unnecessary to be dispensed which has been transported to the escrow unit, to the corresponding denomination-specific storing and ejecting unit. an inlet configured to receive a banknote to be deposited; an outlet configured to eject a banknote to be dispensed; a recognition unit which is configured to recognize a denomination and fitness of a banknote and to recognize a kind of an unfit banknote including, in addition to a stained banknote, at least any one kind of thickened banknote, deformed banknote, and fatigued banknote; a plurality of denomination-specific storing and ejecting units which are configured to store the banknote to be deposited by denomination according to a result of recognition by the recognition unit in a depositing process, and are capable of ejecting the stored banknote to be transported to the outlet in a dispensing process; the banknote depositing and dispensing machine further comprises escrow unit which is configured to escrow a banknote; in the depositing process, a banknote recognized as a normal banknote and a banknote recognized as an unfit banknote by the recognition unit are transported to the escrow unit, and further, transported from the escrow unit to the denomination-specific storing and ejecting units, and an abnormal banknote recognized as unrecognizable by the recognition unit is returned to the outlet, wherein in the dispensing process, a control unit is configured to transport a banknote recognized as a normal banknote by the recognition unit to the outlet, to judge whether a banknote recognized as an unfit banknote is allowed to be dispensed to the outlet based on the kind of unfit banknote, and to set only the stained banknote as allowed to be dispensed to the outlet and to set the kind of unfit banknote other than the stained banknote as not allowed to be dispensed to the outlet, and wherein in the dispensing process, when a banknote is dispensed from the denomination-specific storing and ejecting unit storing normal banknotes of a plurality of denominations in a mixed state, in a case where a banknote of a denomination unnecessary to be dispensed is ejected from the denomination-specific storing and ejecting unit, the control unit is configured to transport the banknote of the denomination unnecessary to be dispensed, to the escrow unit, and after a predetermined quantity of banknotes to be dispensed is ejected to the outlet, and the control unit is configured to transport the banknote of the denomination unnecessary to be dispensed which has been transported to the escrow unit, to the corresponding denomination-specific storing and ejecting unit.