Disposition of used/ unfit notes

The unfit notes are the Non-Issuable / mutilated, soiled and defective/cut notes that are:

Notes which become dirty and limp (soft) due to humidity and their constant use / change of hands.


  • Notes, which are torn, disfigured, partially cut damaged or slightly burnt provided ¾ portion thereof be intact.
  • Notes divided into two pieces either horizontally or vertically but are in full.

Notes, which are torn into more than two pieces, oily, burnt and are more than half and require special examination.

The values of following notes are not payable under the Note Refund Regulations:

  • Less than half of a full note.
  • Found to be forged.
  • Deliberately cut, mutilated or tampered.
  • Carrying any message of a political character.
  • Portrait of Quaid-e-Azam is desecrated.
  • Cancelled by any Field Office of the SBP BSC, NBP Chest, nominated Commercial Bank or against which the value has already been paid.

The unfit notes after cancellation are put into verification, the same are sent for destruction by burning in the incinerator / destruction in the note shredding machine locally manufactured shredding machines.

Caution: Legal Tender (Inscribed Notes)
As per Federal Government Legal Tender (Inscribed Notes) Ordinance 1977 (XXII of 1977) dated the 26th May 1977 any note which bears written, stamped, embossed or inscribed any words or visible representation intended to convey or capable of conveying a message of a political, religious or commercial character, (drawing beard and moustaches on the portrait of Quaid-e-Azam) ceased to be legal tender with effect from 2nd June 1977, the State Bank of Pakistan has no obligation to receive exchange or refund the value of any such note.

Replacement rules:
Pakistan legal tender banknotes which are damaged or mutilated (e.g. partially burnt, cut or decomposed) and which fulfil certain criteria are replaced by the Field Offices of SBP BSC, National Bank of Pakistan Chest /Sub-chest branches and the nominated branches of Commercial Bank. How these notes are exchanged and where exchanged the detail of which is as under:


Following are Conversion Rates Valid for:
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