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Coins and Banknotes | Replacement of banknotes and coins unfit for circulation

Replacement of banknotes and coins unfit for circulation

The characteristics of banknotes and coins that can be replaced are defined in Annexes 7 and 8 of the Decision on Cash Flow Management.

On behalf of legal and natural persons, banks are required to replace banknotes and coins which are no longer fit for circulation.

A banknote is no longer fit for circulation:
  • If no less than 51% of the banknote surface area is presented for replacement; 
  • If visibly soiled across its the entire surface; 
  • If visibly stained; 
  • If visible additional images and/or letters, numbers or other signs are written or drawn on it – graffiti; 
  • If visibly lacking ink on part or whole of the banknote, e.g. washed banknote; 
  • If it has at least one tear; 
  • If it has visible holes; 
  • If part/parts are missing along at least one length of the banknote, e.g. a corner; 
  • If parts of one or several banknotes are joined together by tape or glue, or if other attempts at repair were made; 
  • If it has multiple crumples affecting its appearance;
  • If it is limp, i.e. if structural deterioration resulted in the lack of stiffness;
  • If it was folded and cannot be straightened by hand;
  • If at least one corner is visibly folded and cannot be straightened by hand;
  • If produced defective and as such put in circulation (maculated banknotes)
     
A coin is unfit for circulation:
  • If its physical properties have been altered through usage, by corrosion or due to physical damage; 
  • If produced defective and as such put into circulation (scrap coins)
     

If less than 51% of the proper banknote surface area is presented to the bank for replacement, the person making a note claim must provide a written explanation of how the damage to the banknote occurred, or, if a portion or portions of the banknote are missing, an explanation as to what had happened to the missing portions, and how this person had come into possession of the banknote, as well as information on the person making a note claim.

The bank sends such banknotes to the National Bank of Serbia, who then establishes whether there are grounds for a note claim.


If a bank receives a claim for replacement of a banknote stained with alert colour, it must obtain a written explanation from the person making a note claim as to how the damage had occurred, and how this person had come into possession of the banknote, as well as information on the person making a note claim.

The bank sends such banknotes to the National Bank of Serbia, who then establishes whether there are grounds for a note claim. 

Regulations

Decision on Cash Management