Emirates Central Bank Sets Guidelines for Replacing Damaged Currency
The Central Bank outlines specific criteria for compensating damaged banknotes, detailing distinctions based on the degree of deterioration.
The Central Bank of the United Arab Emirates has established clear conditions and criteria for the replacement or compensation of damaged currency notes.
The bank emphasizes the significance of verifying the authenticity of the affected notes before compensation is issued.
Under the new guidelines, currency notes that are distorted or incomplete will be compensated according to the following standards:
- Full compensation will be provided if the area of the banknote or the total of its parts equals or exceeds two-thirds of its original area, allowing for reimbursement at its nominal value.
- Half the nominal value will be compensated if the area of the banknote or the sum of its parts exceeds one-third but is less than two-thirds of the total area.
- No compensation will be issued if the area of the banknote or its parts does not exceed one-third of its original size, resulting in a zero value for the damaged currency.
These measures aim to ensure clarity and consistency in the handling of currency-related transactions and to maintain the integrity of the national currency system.