Bangladesh Bank on Monday asked the scheduled banks to accept mutilated coins and charred low denomination currency notes in line with the Bangladesh Bank (Note Refund) Regulations 2012. The BB issued a circular to managing directors and chief executive officers of all banks saying that it had recently received allegations that the banks were reluctant to accept mutilated and charred coins and low denomination currency notes violating the regulations. In the circumstances, people are facing hazard and that is also hampering the normal economic activities, the circular said. The BB will take punitive measure against the banks which will not take initiative in this regard as it (central bank) earlier issued several directives on the matter, it said. According to the BB regulations, the banks have to pay full value of a currency note to clients through the cash counters if the single largest piece of a mutilated or charred note presented is more than 90 per cent of the note. The banks will have to pay 50 per cent value, if the single largest piece of the note presented before the bank is between 51 per cent and 75 per cent of the note. The clients will get 75 per cent of its value, if the single largest piece presented is between 76 and 90 per cent of the note.