Malaysians whose cash has been damaged by termites may not have to write off their savings, as the affected banknotes could still be eligible for reimbursement if they meet Bank Negara Malaysia’s requirements.
According to guidelines published by Bank Negara, damaged or unfit banknotes may retain their value and can be presented at any bank for assessment and exchange.
For cases that meet the straightforward criteria, financial institutions may reimburse customers on the same day, provided at least two-thirds of the original banknote remains intact.
The notes must also be free from markings or writings on the portrait of the Yang di-Pertuan Agong, including political slogans or other forms of defacement.
However, termite-damaged currency falls under Bank Negara’s “doubtful cases” category, together with banknotes affected by fire or ink stains.
A Bank Negara source told the New Straits Times that the classification means the damaged notes would need to be assessed by the central bank before a decision is made.
The source said termite-damaged banknotes would likely qualify for reimbursement if they satisfy the basic requirements applied to straightforward cases, including having at least two-thirds of the original note remaining and no prohibited markings or defacement involving the Yang di-Pertuan Agong’s portrait.
The issue gained attention after a Malaysian woman revealed that termites had severely damaged around RM2,000 of her savings.
The woman, who posted photographs of the affected RM20 notes on Threads under the handle @anak_orangsebelah, said she had kept the money underneath a cupboard.
Images shared online showed several banknotes with their corners chewed away, while some had sustained large holes after being attacked by termites.
Her post attracted more than 600,000 views within three days, prompting users to suggest that she bring the damaged cash to a commercial bank or Bank Negara for assessment.
The unusual incident also prompted others to share similar experiences, including one social media user who said their father had previously lost access to RM10,000 in cash after termites damaged the notes.
The case serves as a reminder that severely damaged banknotes should not immediately be treated as worthless, as their value may still be recoverable depending on the extent of the damage and Bank Negara’s assessment.
