The Central Bank of the United Arab Emirates (CBUAE) has released comprehensive guidelines for residents seeking compensation for damaged, torn, or incomplete banknotes. As the regulatory authority overseeing the banking and insurance sectors, the CBUAE aims to promote financial stability and consumer protection. The guidelines ensure that compensation is distributed fairly, adhering to strict verification criteria.

To determine compensation, the CBUAE utilizes specific measurement-based criteria. If two-thirds (2/3) or more of a banknote’s area is intact, the holder will receive full face value compensation. Conversely, if more than one-third (1/3) but less than two-thirds (2/3) of the note remains, the compensation will be half the face value. In cases where one-third (1/3) or less of the note’s area is intact, no compensation will be provided.

Additionally, the CBUAE will only compensate notes that it has issued, with each case assessed for authenticity and eligibility. The bank’s regulations stipulate that compensation is only available for torn, mutilated, or imperfect notes that meet specific requirements. Notes failing to meet these conditions will be withdrawn without compensation, as will any coins that have lost their features or altered shape due to factors outside of normal use.

Residents holding damaged banknotes should ensure their notes meet the outlined guidelines before submitting them for exchange. To claim compensation, individuals can visit any bank branch in the UAE, as banks are required to exchange soiled, mutilated, or torn notes for fresh ones, regardless of whether the individual is a customer. The value of the exchange will depend on the extent of the damage to the banknote.