Bangladesh Bank (BB) Wednesday warned the commercial banks of stern actions for not accepting mutilated or defective currency notes from a public.

In case of any non-compliance, the central bank will initiate stern actions against the management of concerned branch and head office of the banks, the central bank said in a circular Wednesday.

The BB circular also asked the banks to check genuineness of the currency notes before initiating payments against the mutilated or defective notes.

According to BB circular, 90 percent of the security features of the mutilated or defective notes must be genuine for full refund on submission of torn bank notes.

Bank branches will need to send the currency notes of different denominations which are more than two-split submitted by clients seeking refund, the circular reads.

Banks were also directed by the central bank to hang notice regarding value refund against mutilated or defective notes at visible places at every branch offices.