What should you do if you have mutilated money in your possession? (2024)

FAQs

What should you do if you have mutilated money in your possession? ›

Individuals, financial institutions, and businesses may contact the Department of the Treasury's Bureau of Engraving and Printing (BEP) if they are in possession of mutilated U.S. currency, meaning that the currency has been damaged to the extent that one-half or less of the original note remains, or its condition is ...

Mutilated currency must be sent directly to the BEP's Mutilated Currency Division (Off-site), with a letter stating the estimated value of the currency and an explanation of how the currency became mutilated, to the correct address below based on the shipping method.

A mutilated note is a note of which a portion is missing or which is composed of more than two pieces. Mutilated notes may be presented at any of the bank branches. The notes so presented shall be accepted, exchanged and adjudicated in accordance with Reserve Bank of India (Note Refund) Rules, 2009.

The currency “may be exchanged at commercial banks.” You could tape the green stuff back together but be warned that merchants may not accept the bandaged bills. If you have, what the government refers to as, “mutilated money” then you can send the cash off to the Treasury for exchange.

Any fused, melted, or otherwise mutilated coin should be sent to the United States Mint for evaluation.

Unfit currency for redemption is currency which is unfit for further circulation because of its physical condition such as dirty, defaced, limp, torn, or worn. Unfit currency should not be forwarded to Bureau of Engraving and Printing for redemption, but may be exchanged at commercial financial institutions.

As long as more than half of the original note is clearly present—and it doesn't take special examination to determine the note's value—a commercial bank can then include the note in its deposit to the Federal Reserve.

The Bank replaces damaged banknotes, including those torn or burnt, with new banknotes, according to the proportion of the part of the original banknote remaining, provided that both front and reverse sides of the banknote are maintained.

Types of Damaged Banknotes

A banknote with a significant piece missing is classified as incomplete. These banknotes may not be worth full value because the Reserve Bank needs to take into account the possibility that pieces of the banknote may be presented for value separately.

If your money has suffered minor damage (minor tears, stains, soilage, etc.) but is still legible and usable, go ahead and use that currency as is. If it's damaged but not mutilated, but you don't want to use that currency for some reason, you're qualified to exchange that money at your local bank.

Is it a felony to tear money? ›

Section 331 of Title 18 of the United States code provides criminal penalties for anyone who fraudulently alters, defaces, mutilates impairs, diminishes, falsifies, scales, or lightens any of the coins coined at the Mints of the United States.

Lawful holders of mutilated currency may receive a redemption at full value when: Clearly more than 50% of a note identifiable as United States currency is present, along with sufficient remnants of any relevant security feature; or.

If you violate laws related to coins and currency, you could be charged with a federal crime and could face the potential for jail time or other serious penalties. You could also be left with a criminal record.

Banks are businesses, they have the right to refuse loose or rolled coins, just as much as they have the right to refuse a bank draft from another bank or check, or counterfeit currency and coins..

Mutilated Notes

These can also be exchanged at the counters of any public sector bank branch, any currency chest branch of a private sector bank or any Issue Office of the RBI without filling any form.

Coins with rare and significant mint errors, such as double or off-metal strikes, can be highly sought by collectors and investors. The rarity and severity of the error can significantly impact the coin's value.

As long as three-quarters of a bill are intact, you can exchange it for a whole bill. For more severe damage, you will need to submit your bills to the Mutilated Currency Division of the Bureau of Engraving and Printing, where it will be reviewed by U.S. currency experts. The service is free and relatively routine.

Burning money is illegal in the United States and is punishable by up to 10 years in prison, not to mention fines. It's also illegal to tear a dollar bill and even flatten a penny under the weight of a locomotive on the railroad tracks.