Bank of Algeria refunds torn and damaged banknotes under set conditions

The Bank of Algeria refunds torn, burnt or water-damaged banknotes at its branches across the country, if they meet set conditions.

Maghreb Emergent reported that a damaged note is not always lost. Some damaged notes can be exchanged, depending on their condition and on identifying features that are still visible.

Depending on the damage, the refund can be paid at the counter or may need an expert check in Algiers.

Damaged notes are not exchanged at the bank where a person holds an account. The operation is handled by the Bank of Algeria (the Bank), the country's issuing institution, which has a branch in each of the 48 wilayas.

Individuals, traders and companies all use the same process. The Bank treats used notes and mutilated notes under one heading.

What to bring to the branch

At the branch, the person fills in and signs an exchange form. The form asks for the person's identity, address and phone number.

The form also asks for the number of notes or pieces handed in, or their declared value, and the cause of the damage, such as water, fire or improper handling. An identity document is therefore needed.

If the notes were damaged by fire or flood, the person must attach a report from the competent authorities. The report must be requested on the day of the event, not after the file has already been submitted.

Cases decided on the spot

The Bank's guidance on used notes settles two cases at the counter, without sending the file to Algiers.

In the first case, the note still shows all its identifying features. It is judged identifiable and refunded straight away.

In the second case, the note is damaged but whole, or only two-thirds of its surface remains. One side mark, which mixes letters and numbers, must be intact and readable.

The note is then valid and is also refunded straight away.

A note missing more than a third of its surface falls outside this system, even if the person brings the pieces.

These two cases cover most household accidents, such as a note that was washed, crumpled, stained, faded or slightly torn. The person leaves the counter with the same value in usable notes during the same visit.

Cases that go further

When a note's identifying features are incomplete and its condition stops it being used, the process changes. The branch rebuilds the note and passes it to the Bank's General Cash Office, the only body that examines it.

A half note can be accepted if it keeps a complete side mark.

In a written reply to MP Kamel Kourichi, the Ministry of Finance confirmed that these notes are not exchanged at the counter. The person leaves the note against a receipt, and the General Cash Office alone decides whether it is refunded or written off.

The ministry based this process on law 23-09 on currency and credit. It also relies on banknote recognition features, set out at three levels, the last of which is confidential.

A note made of pieces from several different notes is neither refunded nor returned.