7 Jan - 2 min read
If you’ve been affected by the recent floods and find yourself weighed down with a fair amount of damaged Ringgit Malaysia notes, these currencies are actually not completely lost as Bank Negara Malaysia (BNM) has a standing policy that lets you exchange banknotes that are considered to be “unfit for circulation”.
In a Facebook post today, the central bank shared a reminder that “[i]f your ringgit notes are damaged by the floods, you can exchange them at any banks” – including those that you do not have an account with. As the visual shared by BNM below shows, examples of damages may include holes in your banknotes, extensive or localised dirt or liquid, ink wear, loss of security feature, and limpness.
That said, BNM also emphasised that the exchange value may not necessarily be the equivalent amount of money’s worth in return. Rather, it depends on the condition of the damaged note, which will be determined by the bank that you visit and the central bank. Generally, you can expect to receive compensation of either full or half value – or no compensation at all, if the damaged notes do not meet criteria set by BNM.
Additionally, the speed with which you’ll receive your compensation will also vary based on the state of your notes; if it is a straightforward case of damaged notes, you can expect to receive the compensation on the same day. However, in unclear cases of damaged notes, your bank may need to consult BNM – which means that your compensation will come at a later date.
To clarify, this banknote exchange policy is not new; it has been around for a while, and even has an official document of the Quality Standards for Malaysian Currency to guide the process. It is applicable to numerous other forms of blemishes as well, and not just flood-damaged notes. If you have Malaysian banknotes that have been torn, cellophane taped together, burnt, infested by termites, defaced, or shrunk, you can also approach the nearest bank branch to make enquiries. In fact, the guideline also covers coins that have been corroded, dented, cut, or stained.
Do be aware, though, that while most commercial banks will provide this service for free, some may charge a small fee for it. As such, make sure to clarify before kickstarting any processes.
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