Central bank issues clear rules for torn or burnt notes

PNN News Desk: Dhaka

Bangladesh Bank has issued clear rules on how much value customers will receive in exchange for torn, burnt, or damaged notes. Under this new policy, customers can get replacement value from commercial banks for damaged currency.

The central bank recently issued a circular to all commercial banks’ CEOs, stating that the guidelines are effective immediately. The new regulation, “Bangladesh Bank Note Redemption Regulation 2025”, replaces the previous 2012 rules.

According to the new policy, if more than 90% of a note is intact, customers will receive its full value. Previously, there were no clear instructions for torn or burnt notes, which caused confusion.

Damaged notes due to accidents, fire, or daily use can be exchanged at central bank branches or commercial bank branches. Only notes with over 90% intact will receive full value. For notes in two pieces, banks must verify both halves and attach a thin white paper to confirm authenticity.

If a bank branch fails to provide the correct value, customers can submit a written complaint to the bank, and if unresolved, escalate to the central bank, which will decide within eight weeks. The circular also warns that banks are obliged to provide regular services for replacing damaged notes