Is it permissible to exchange burnt money at petrol station in Vietnam?

Is it permissible to exchange burnt money at petrol station in Vietnam?

Pursuant to Clause 2 Article 6 of the Circular 25/2013/TT-NHNN stipulating exchange of money not eligible for circulation as follows:

2. For money that is not eligible for circulation as stipulated in Clause 2 Article 4 of this Regulation, customers shall submit that money to the State Bank branches, Central Banking Department, collecting-exchanging units. These units shall receive and consider exchanging with the following conditions:

a) Money torn, damaged not due to act of destruction;

b) Where the bank note is fired, holed, torn partially, its remaining area must be equal to or larger than 60% of the area of the note of the same type, if it is patched up, its area must be larger than 90% of the note of the same type and its origin and lay-out must remain unchanged (front, back; upper, lower; right, left), and its security elements are identifiable;

For polymer money, which is fired or shrunk due to contact with high heat source, its remaining area must be at least equal to 30% of the note of the same type, its lay-out remains unchanged, and at least two of following security elements must be identifiable: the hidden picture in the small window; luminescent colorless ink, luminescence of the serial number lines, security fiber, IRIODIN factor, portrait of the President Ho Chi Minh.

Based on the conditions for exchange of money as stipulated in this Paragraph, State Bank branches, Central Banking Department, the collecting- exchanging unit shall carry out the money exchange for customers. If the conditions for money exchange are not satisfied, State Bank branches, Central Banking Department, the collecting- exchanging unit shall return the money to customers and give a notice of the reason thereof.

For money notes of which exchange conditions are unidentified and need further appraisal, the relevant customer must submit a written application for money exchange (as per Appendix No. 01 attached herewith).

As regulations above, when the polymer money is burnt but still meets the exchange conditions, the branch of the SState Bank branches, Central Banking Department, the collecting- exchanging unit will exchange money.

Your mother's polymer 500,000 VND banknote has been scorched in one corner, so you can bring it to the nearest bank to change it. There are no regulations on changing money at the gas station. If the VND 500,000 bill is burned but still meets the conditions for exchange mentioned above, you will be exchanged for a new one.

Is there any fee for exchange of burnt money in Vietnam?

Pursuant to Article 8 of the Regulation on the withdrawal and exchange of money not qualified for circulation issued together with the Decision 24/2008/QĐ-NHNN stipulating fee for exchange of money not qualified for circulation as follows:

1. Fee for exchange of money not qualified for circulation in accordance with provisions in Paragraph 2, Article 6 of this Regulation shall be equal to 4% of total value of the money, not qualified for circulation, to be exchanged, and the minimum fee for each amount to be exchanged shall be 2,000 dong.

2. Fee for exchange of money not qualified for circulation already include value added tax and is recorded into income of the collecting- exchanging unit.

As regulations above, exchanging burnt money does have fees according to the Decision 24/2008/QĐ-NHNN.

However, Decision 24/2008/QĐ-NHNN has expired and is replaced by Circular 25/2013/TT-NHNN, this Circular does not provide for the collection of fees when exchanging burnt money. Therefore, when you exchange burnt money at the bank, there will be no fees.

Does burnt money satisfy standards for circulation in Vietnam?

Pursuant to Article 4 of the Circular 25/2013/TT-NHNN stipulating standards for money not eligible for circulation as follows:

1. Money that is torn into pieces, damaged due to the circulation process (group of objective reasons):

a) Paper money, of which color is changed, of which designs, letters, digits are faded, which is wrinkled up, smeared, dirty, old; torn into pieces or patched up in full form;

b) Coins, of which the picture, designs, letters, digits and the plated layer are worn out, rusted, damaged partially or wholly.

2. Money that is torn into pieces, damaged due to the preservation process (group of subjective reasons)

a) Paper money which is holed, partially torn; patched up; fired or deformed due to contact with high heat source; of which printing paper, color, security specifications are changed due to the chemical impact (for example detergent, acid, corrosive, etc); which contains the writing, is drawn, erased; which is decayed or deformed due to other reasons, but not due to acts of deterioration.

b) Coins, which are curved, deformed, or of which design, picture is changed due to the impact of external force or high temperature; which are rusty due to contact with metal corrosive chemicals.

3. Money which contains technical error caused during the printing, coining process of the manufacturer, for example printing paper is rumpled causing the loss of picture or printing color, which is splattered with printing ink and contains other mistakes during the printing, coining process.

Above are standards for money not eligible for circulation.

Best regards!