What to do if rats or termites destroy your money? Here’s what Bangladesh Bank says

Thinking of his family’s future and potential emergencies, Gaibandha farmer Tofazzal Hossain had saved nearly Tk 200,000.

The elderly farmer from Dahaband union in Sundarganj upazila kept his hard-earned savings in a wooden cupboard.

Tap here to add The Daily Star as a trusted source

According to media reports, when he opened the cupboard on the afternoon of August 7, he was shocked to find that termites and rats had shredded all of his savings.

The sight left Tofazzal and his family in tears. Local residents have urged the administration to stand by the farmer and arrange for the damaged banknotes, torn apart by rats and termites, to be replaced.

This raises the question: what can one do with shredded banknotes? Is there any way one can return the damaged notes and receive new ones in exchange?

According to Bangladesh Bank guidelines, all commercial banks in the country are required to accept and exchange damaged or torn banknotes from the public.

Asked whether the notes belonging to Tofazzal could be replaced, Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan told The Daily Star, “The central bank can withdraw torn or damaged notes from circulation and pay their exchange value. However, there is a procedure for this, and there is also a committee. The committee can determine which notes are eligible for exchange and which are not.”

The central bank says that in such cases, the Bangladesh Bank Note Refund Regulations 2025 and Bangladesh Bank’s Clean Note Policy may be followed.

The policy states that torn, damaged and unfit banknotes must be deposited through banks in accordance with Bangladesh Bank’s instructions.

Under the Note Refund Regulations, notes damaged by termites or rats may be considered “claimable” notes.

A “claimable” note refers to a banknote in which 90% or less of the original note remains. Damp notes, severely worn notes, notes defaced with colour or ink, and notes torn into more than two pieces are also considered claimable.

Tofazzal can now submit a claim to exchange his shredded banknotes directly at a Bangladesh Bank counter or through any scheduled bank.

Under the regulations, the claim will be settled through the office where the notes are stamped with the word “claimable”. The claim application must be submitted within six months of the notes being stamped, and the claim must be settled within eight weeks of the application being filed.

A claim regarding the banknotes can also be submitted through a branch of a scheduled bank. In such cases, the concerned bank branch will forward the application to the nearest Bangladesh Bank office.

Bangladesh Bank will take the necessary steps based on the decision of the designated officer and in accordance with the prescribed procedure.

Bangladesh Bank official Arif Hossain said, “He [Tofazzal] can contact the central bank’s offices in Rangpur or Bogura. Alternatively, he can approach a local bank branch. If he contacts a nearby Sonali Bank or Bangladesh Krishi Bank branch, he will receive the appropriate guidance.”

The central bank has set some general rules for claims to receive the exchange value of torn and damaged banknotes.

For example, the submitted note or pieces of a note must bear the characteristics of a genuine banknote; otherwise, the claim will be rejected. Claims involving mutilated or mismatched notes will also be rejected.

A claim for a damp note will be rejected if the designated officer is not satisfied with the note’s characteristics and authenticity.

Claims will also be rejected if notes or pieces of notes that have been deliberately cut, torn or perforated are presented as claimable notes.