What happens to all the old Indian rupees, which are about to get torn?
Individuals submit soiled notes to banks for replacement. Once the soiled notes are received by the banks, they send it to the regional RBI branch office. They are then checked and verify for quality as well as quantity, using machines. Thereafter, they are sent to the RBI main branch. RBI destroys such currency and provides fresh notes in the circulation. This way, old notes are taken back from the system while new notes are reintroduced.