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What do banks do with the money that had dye go off on all the bills?

3 Answers

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  • 1 decade ago
    Favorite Answer

    Severely damaged bills are returned to the Treasury for destruction. However, they will NEVER have notes with the dye entirely worn off. They would remove bills from circulation long before that stage. Anything that did that level of damage in a short time would be sufficient to require Treasury experts simply to verify it had EVER been currency.

  • Ron G
    Lv 4
    1 decade ago

    They turn it back in to the treasury and get new bills. Treasury officials then shred the bills and ,I believe, recycle them.

  • 1 decade ago

    It is sent back to Federal Reserve and shredded.

    Source(s): bank teller
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