Redemption and withdrawal of banknotes
Redemption of damaged banknotes
The Central Bank redeems damaged banknotes at full face value if both serial numbers are visible. If only one serial number is visible, the banknote is redeemed at half of its face value, provided that at least one-fourth of the note is intact. Banknotes that are so damaged that neither number is visible are not redeemed.
The Bank redeems minted coins even if they are worn or damaged or the printing is worn if the value of the coin is legible.
Withdrawal of banknotes
Three banknotes have been withdrawn from circulation: 10-, 50-, and 100-króna notes. These notes were first circulated in 1981. The banknotes could be redeemed at commercial banks and savings banks until 1 June 2007. The Central Bank of Iceland continued to redeem them for at least twelve months after that date.
The Act on Iceland’s Currency, no. 22/1968, and the Regulation on the Withdrawal of Banknotes, no. 1125/2005, can be found here: Laws and rules.