No need to panic if a torn note comes out while withdrawing money from an ATM
According to RBI rules, if a torn note comes out of an ATM, the bank cannot refund it. If the bank refuses to exchange the bad note, a fine of Rs 10,000 will be imposed on it.
Even today, when cash is needed, people go to ATMs and withdraw money as per their need. But sometimes it also happens that some of the notes withdrawn from the ATM are torn and broken which makes people anxious.
Procedure to replace a torn note
In fact, when a note is torn out of an ATM, people wonder what to do with it. Because no one will take such a note in the market. But there is no need to worry about this as you can easily replace your torn note.
As per RBI rule, a bank cannot refund a torn note if it comes out of an ATM. The bank has no lengthy procedure for exchanging notes. The note can be exchanged in minutes.
Writing an application in a bank
Take the torn note from the ATM to the bank with which the ATM is linked. You have to go there and write an application. In which you have to specify the date, time, place from where the money was withdrawn. Along with the application, a copy of the slip drawn from the ATM has to be attached. If the slip is not received, the details of the transaction on the mobile have to be given.
Informing the bank
You will give all the information to the bank as soon as you exchange another note. As stated by the RBI in its guideline in April 2017, a bank cannot refuse a torn note. People will be given torn notes at every branch of all the banks.
In July 2016, the RBI said in a circular that if a bank refuses to exchange bad notes, it will be fined Rs 10,000 and will apply to all branches of the bank.
According to the RBI, it is the responsibility of the bank to remove bad or counterfeit notes from ATMs. The agency is also not responsible for the money that is deposited in the ATM. If there is any defect in the note, it should be checked by a bank employee. If the serial number, Gandhiji's watermark and the governor's oath are visible on the note, the bank will have to exchange the note.
In some cases the note is not exchanged
However in some cases the note cannot be exchanged. According to the Reserve Bank of India's rule, a completely burnt, bankrupt note cannot be exchanged if it is broken. Such notes can only be deposited at the RBI's issue office.
source by source by https://www.divyabhaskar.co.in