Grading of Notes

Currency Notes are graded based on their condition. 

The grades specified by the International Bank Note Society (IBNS) are as follows 

Grade		Description
UNC	Uncirculated	A banknote that is bright and has no handling damage, such as folds or creases, nor any cuts, stains, or rounded corners
AU	About uncirculated	A banknote that is still bright but has trivial handling damage, i.e. a light centre fold (not a crease, which is a break of the fibres of the paper), without rounded corners
XF or EF	Extremely fine	a banknote with one crease or up to three light folds. Paper still bright and attractive, very slight wear to corners allowed
VF	Very Fine	Note still attractive, but possible slight dirt or smudging, may have several horizontal and/or vertical folds. Paper remains relatively crisp. No tears, but slight wear to edges and corners is allowable.
F	Fine	Paper is now slightly soft, considerable wear due to folds from use in circulation. Minor tears to note, not extending into the design. Clear but not bright in appearance. Staple holes but not holes due to folding.
VG	Very Good	Much wear. Paper is limp. Tears can extend into the design. Staining possible. Discoloration possible. Hole at center caused by folding allowable. Note still looks presentable.
G	Good	Very much wear, as VG, but more so. Graffiti on note. Small pieces of the note may be missing
	Fair	Larger pieces of note torn off/missing, compared with G. Less of the note intact
	Poor	Severe damage due to wear, staining, missing pieces, graffiti and/or holes