Sunday, February 14, 2010

Where can you change damage money?

Where can you change damage money? I am not talking about the current Malaysia ringgit exchange to US dollar. What I meant is how you can exchange or redeemed your damaged, torn or discoloured ringgit notes to a new one at Bank Negara Malaysia or any of its branches. Bank Negara Malaysia (BNM) has been posted a guidelines for this on 15 September 2009. This is also a post for anyone who read about the "laundy money" of Yeoh Jit Shiong. The news posted on the local Star newspaper show how many people don't know how they can change or replace their money with the new one.
Photo from The Star News: Ink Wear ringgit

Here is a guidelines by BNM on the treatment of unfit, mutilated, defaced and fraudulently tampered genuine banknotes.

1. Unfit banknotes.
All unfit banknotes that have the following characteristics should not be reissued to the public but instead deposited in BNM:
  • Soiling-General or localized spread of dirt or liquid on the surface of the banknote.
  • Limpness-Excessive folding that result in a breakdown of the structure and limpness of the banknote.
  • Crumples-(shrinkage of a polymer banknote).Multiple random folds across the entire banknote that strongly affect the visual appearance of the banknote (including shrinkage of polymer) banknote due to excessive exposure to heat.)
  • Ink wear-Ink wear on part or whole of the banknote, for example, if it has been washed or is subjected to abrasive chemical agent.
  • Tears-Tears of any size or direction of more than 5mm on any part of the note.
  • Holes-Banknotes exhibiting at least one visible hole greater than 5mm (staple and pinholes are acceptable).
  • Repairs-Parts of the same banknote joined together by tape or glue.
  • Corner folds-Permanent and irreparable corner folds leading to a reduction in length of more than 5mm or a reduction in width of more than 5mm.
  • Burnt / Termite infested-Damage caused by burning or termites of any size or direction of more than 5 mm.
  • Composed banknote-Banknotes divided into several parts and only some are joined together or parts of different banknotes are joined together.
  • Missing security feature-Any one or more security feature missing or is defective.
  • Defaced-Banknotes containing words, signs, symbols and drawings inscribed deliberately on the surface.
Photo by ilzdaf fotopages: torn new 5 ringgit polymer notes

Photo by Bank of Thailand: paper money damage by termites infested

2.Mutilated banknotes.
Mutilated banknotes mean banknotes which have been damaged or the appearance of which have changed, by accidental contact with water, oil, paint, ink or similar substance or a portion or portions having become missing provided that such portion or portions as may be presented may be established beyond all reasonable doubt to have been originally a portion or portions of a single currency note. ‘Mutilated banknotes’ that require assessment for compensation by BNM should be presented at BNM branches or Head Office.

The following guidelines for the assessment of mutilated banknotes should be observed:-
  • Full value-BNM will compensate full value to any piece of banknote which has more than two third (2/3) of the original size.
  • Half value-BNM will compensate half value to any piece of banknote which has half (1/2) or more than half, but less than two thirds (2/3) in size.
  • No value-BNM will not compensate any value to any piece of note which is less than half (1/2) in size of the original note.
  • All significantly mutilated banknotes submitted by the public for which the Bank will not grant compensation shall be returned to them.
3. Defaced banknotes.
Defaced banknotes are banknotes that contain words, signs, symbols and drawings or caricatures that are either written or inscribed on the surface deliberately.

The following guidelines for the assessment of defaced banknotes should be observed:-
  • Full value-BNM will compensate full value to any piece of banknotes, which has minor defacing.
  • No value-BNM will not compensate any value to any piece of banknote which is defaced in any significant way, i.e. markings done on the portrait of the Yang DiPertuan Agong, writing political slogans or using the banknote as a writing pad or invitation card. This is regulated in Section 25 and 27 of the Central Bank of Malaysia Act 1959.
Photo by Bank of Thailand: badly burnt banknotes

4. Doubtful cases
Any doubtful cases where an assessment is difficult to make due to poor condition of the note (e.g. a piece of badly burnt note or damaged note where the size of the note is difficult to determine) should be referred to Bank Negara Malaysia for assessment.

5. Fraudulently tampered genuine banknote
BNM will not compensate any value to a piece of genuine banknote whose original feature(s) and/or denomination has been altered, removed or tampered with (in whole or in part), and they are replaced by suspected counterfeit portion(s) or feature(s), or feature(s) taken from other genuine banknote.

6. Counterfeit banknote
BNM will not compensate any value for a counterfeit banknote.

7. Reference
For further details, please refer to the Guidelines on Quality Standards for Malaysian Currency as published in

This is a great exchange hosted by Bank Negara Malaysia for any money that damaged during circulation. Banknote is medium of exchange, it is repeatedly circulated from one to another. Being continuously used, they finally become damaged such as mutilated, some parts missing, strained, or faded away, and therefore, they are not suitable for common use. Next time if you find any of this banknote or damage them by mistakenly put your wallet in a laundy. You can change them at Bank Negara Malaysia office or any of it branches.

Source: Bank Negara Malaysia