Russian banks tighten foreign cash exchange, reject damaged notes

Russian banks are increasingly strict about accepting foreign cash. Travelers trying to exchange euros or dollars may have part of their cash refused if the notes show even minor defects such as a folded corner, a small oil stain, pen marks, tiny tears, or other signs of wear.

Banks are legally required to identify customers for transactions exceeding 40,000 rubles (about 445 euros or 510 USD) and many branches avoid paperwork by refusing to change more than roughly 400 euros at a time. The teller is personally liable for any note that later fails the bank’s verification, so they tend to reject questionable notes. In many cases the decision is made by optical‑reading machines, which will not accept a note even if it looks clean to the eye.

Since 2022, foreign cash inflows have sharply declined, forcing banks to keep only sellable foreign currency. As a result, they are less willing to take damaged notes that are harder to resell. One traveler reported that a VTB branch in Kislovodsk returned two €20 notes because the counting machine rejected them.