Are banks required to accept mutilated currency?

Are banks required to accept mutilated currency? Currency mutilation can occur from fire, misuse, or even deterioration from burying money. The Federal Reserve does not accept deposits of mutilated currency from banks. In this case, special examination is required by pros at the Bureau of Engraving and Printing (BEP) before any exchange is made.

Currency mutilation can occur from fire, misuse, or even deterioration from burying money. The Federal Reserve does not accept deposits of mutilated currency from banks. In this case, special examination is required by pros at the Bureau of Engraving and Printing (BEP) before any exchange is made.