Bangladesh Bank issues new rules for exchange of torn, damaged notes

Bangladesh Bank has introduced a new policy to regulate the exchange of torn, burnt, or damaged currency notes, ensuring smoother cash circulation and clear guidelines for consumers and commercial banks.

Under the newly issued Bangladesh Bank Note Redemption Regulation 2025, any note with 90 percent or more of its original portion intact will be exchanged at full face value.

The regulation replaces the previous 2012 guidelines and requires all commercial bank branches to provide immediate exchange services for damaged notes.

The circular also specifies that notes split into multiple parts must be verifiably from the same note, and and may be temporarily joined using a narrow strip of light white paper on the back to facilitate verification. Extremely fragile notes that may tear during inspection should be handled carefully.

Customers facing difficulties at branch level can submit written appeals to the bank, with unresolved cases escalating to Bangladesh Bank, which must respond within eight weeks.

The circular warns that any branch showing reluctance to provide these services will face regulatory action.