Section 264: Prohibition of misusing torn bank notes

1) No person who is entrusted by order of the competent authority under law with a duty of burning or disposing off the torn notes held to be burnt or disposed of because such bank notes tendered as currency are worn and torn or letters, signs or sizes are unrecognizable or such notes cannot be brought into use for any other reason shall bring into use such bank notes or refrain from burning or disposing of such notes or give them to another person dishonestly intending to obtain any kind of benefit therefrom.

2) A person who commits, or causes to be committed, the offence referred to in sub-section (1) shall be liable to a sentence of imprisonment for a term not exceeding three years and a fine not exceeding thirty thousand rupees.