In a bid to streamline currency management and prevent misuse, Bangladesh Bank (BB) has introduced new regulations under the Bangladesh Bank Note Refund Regulations, 2025. The updated rules, which came into effect on October 9, prohibit the refund of notes that bear religiously provocative or politically biased slogans, or any promotional content related to individuals or products.
According to the regulations, claims for notes that are intentionally cut, torn, perforated, or presented as parts of a note will be rejected. Additionally, if a damp note’s authenticity or characteristics are in doubt, claims for such notes will not be entertained.
The new guidelines detail the refund procedure for damaged banknotes. If more than 90 percent of a banknote is intact, the full value will be refunded. For notes with 51 to 75 percent of the original piece remaining, only 50 percent of the value will be refunded. Notes that are less than 51 percent intact will not be refunded. For notes with 75 to 90 percent intact, 75 percent of the value will be reimbursed.
In the case of burnt notes, the refund process will involve a committee appointed by Bangladesh Bank’s head office. The committee will be led by an officer of at least the rank of currency officer, executive director, or director, with no member below the rank of deputy director. The unburnt portion of the note must be sufficient to verify its authenticity and contain at least 51 percent of the original note. For fragmented burnt notes, the serial numbers on both ends must be intact, and the combined area of the fragments bearing the serial numbers should cover at least 60 percent of the note.
Furthermore, the new regulations outline the security features of a genuine note, which include high-quality paper, a specific size and shape for serial numbers, a security thread, colour-shifting ink, intaglio printing, a watermark, latent image writing, microtext, and an iridescent stripe.
With the introduction of the 2025 regulations, Bangladesh Bank has repealed the previous Note Refund Regulations of 2012. The central bank’s move is expected to improve the integrity of the country’s currency system and ensure greater transparency in note refund claims.
