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News1806/12/2025

RBI Reveals Secure Process for Destroying & Recycling Torn Notes

  • RBI oversees the entire lifecycle of currency notes, including the disposal of old and damaged ones.
  • Notes with over 50% damage are destroyed, while those with more than 50% intact can be exchanged at banks.
  • Damaged notes are collected by banks, sent to RBI centers for inspection, then shredded and incinerated.
  • The ash from incinerated notes is disposed of environmentally; RBI is exploring recycling damaged notes into useful items.
  • Destroying currency notes by citizens is illegal; only RBI has the authority to do so.

Why It Matters: RBI's damaged note disposal: currency integrity, national security, environmental sustainability.

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