Money matter

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Skilled
There is a scene in the movie (1:40) 'eyes wide shut' where tom cruise tears a $100 bill in half in the hopes of getting the taxi driver to wait and on his return he would get the other half. Have often wondered whether the same would work with rupees ie whether a torn half note taped together is valid or not. See the answer.

RBI has rules about this and they are particular.

1. Types of damaged note

A currency note which has become dirty due to usage or a ‘two-piece note’ where two pieces of the same note are pasted together to form the entire note is a “soiled note”. A note of which, a portion is missing or which is composed of more than two pieces is classified as a “cut/ mutilated note.”
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Two piece taped is 'soiled note'. More than 2 piece is 'cut' note

2.
Any currency note cut into two pieces (irrespective of the location of the cut) and pasted together is a soiled note and you can receive full value for this from banks.

However, the amount receivable on mutilated notes depends upon the denomination of the notes and the largest undivided portion available of it.

For notes from denomination of Rs 1 to Rs 20, full value is receivable if the single largest undivided piece of the note presented is more than 50 per cent of the area, rounded off to the next complete square centimeter (measured in a standard grid) and if it is below or even up to 50 per cent, no value is receivable.

For example, a Rs 20 denomination note has an area of 93 sq cm. If the area available in the undivided portion is a minimum of 47 sq cm, full value is receivable, but if area of the note is less than 47 sq cm, no value is receivable.

For higher denominations (i.e. Rs 50 to Rs 1,000), if the undivided area is more than 65 per cent, you get a full value; 40 per cent to less than 65 per cent, half value; and less than 40 per cent, no value is receivable.

Except for the largest undivided piece of the note, presentation/ submission of the remaining pieces is not mandatory and even if the remaining pieces are pasted together, the value receivable does not change.
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Taped two piece notes work no matter where the cut is. But if its more than two pieces then its different.

Banks can sometimes refuse to exchange cut notes so read the article to know how to deal with them. Provided your torn notes conform to RBI's requirement in the first place.
 
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hotshot05 said:
You were watching Eyes Wide Shut and yet you the only thing you remembered is this? :facepalm:

You ,sir, are a true geek.
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hehe, the article made me remember that scene.

hotshot05 said:
When Bollywood will rip off this film and make a remake, if they show the hero tearing the Rs.100 note in two pieces will the driver take the note or not!
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Nowadays that better be a Rs.1000 note.
 
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