Bangladesh Bank has instructed all banks to ensure uninterrupted customer service for the exchange of torn, defective and mutilated currency notes, reiterating the procedures for settlement and claims.
In a circular issued Monday, the central bank said branches must provide exchange value for non-issuable and mutilated notes where more than 90 percent of the note remains intact and genuine security features are clearly identifiable.
For notes split into two parts, banks have been asked to attach the pieces to thin white paper to facilitate proper identification and verification.
However, claimable notes will not be settled at branch level. Banks must forward such notes to the nearest Bangladesh Bank office, which will determine payment within eight weeks. Any postal or courier charges incurred in sending claimable notes will have to be borne by the depositor.
The circular said charred notes must be submitted directly to Bangladesh Bank’s designated claims desk. It also warned that counterfeit notes or so-called “built-up” notes assembled from multiple fragments would invite legal action under existing rules.
Branches have been directed to display notices informing customers that facilities for exchanging torn, defective and claimable notes are available. Banks must also submit monthly reports on the receipt and handling of such notes to the central bank to strengthen transparency and accountability in cash transactions.





