In a decisive move to safeguard the interests of the public, Bangladesh Bank has unveiled a comprehensive new policy designed to address the challenges faced by customers holding damaged, torn, or burnt banknotes. Under the updated regulations, individuals can now exchange deteriorated currency for its full or proportional value, depending on the condition of the note, at rates determined by the bank. This directive has been circulated to the chief executives of all commercial banks across the country and is effective immediately.
According to the revised guidelines, any note retaining more than 90 per cent of its original condition will be eligible for full redemption. The newly introduced framework, titled the “Bangladesh Bank Note Redemption Regulations 2025,” replaces the earlier 2012 “Bangladesh Bank Note Refund Regulations.” The previous policy was often criticised for its ambiguities, which frequently led to disputes between banks and customers regarding the exchange of partially damaged notes. The new regulations, by contrast, provide clear instructions for determining the redemption value based on the note’s remaining intact portion.
The circular further specifies that if a note is split into two pieces, both fragments must belong to the same note. When submitting such notes, a thin white sheet may be placed between the fragments to facilitate identification. Even if the note sustains further damage during verification, the same procedure will apply to ensure its value is properly assessed.
Customers can exchange damaged notes not only at Bangladesh Bank branch offices but also at commercial bank branches. Full reimbursement requires that at least 90 per cent of the note’s original structure remain intact, a standard under which such notes are usually replaced immediately. Partially damaged notes, however, will still be exchanged in accordance with the stipulated regulations, ensuring prompt and fair settlement.
The new policy also clarifies the grievance mechanism for customers. Should a bank branch refuse to exchange a damaged note, the customer may first appeal to that branch. If unresolved, the complaint may escalate to the bank’s head office, and ultimately to Bangladesh Bank, which pledges to provide a final decision and take necessary action within eight weeks of receiving the application.
The circular emphasises that all banks must ensure smooth cash transactions involving damaged, torn, or soiled notes. Any branch displaying reluctance to provide this service will face stringent action from the central bank. Through these measures, Bangladesh Bank reinforces its commitment to fair, transparent, and customer-friendly banking practices nationwide.