A process by which a central bank destroys banknotes that are unfit to return into the Expression used by economists and monetary specialists to refer to the amount of money in circulation.. This is the last step in the life of the A banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand.. The destruction can be done manually or mechanically, and the latter may be online or offline. Online destruction is directly performed by automated Process of fitness sorting of banknotes by their condition of use. Through this process, used banknotes are classified as fit or unfit to return into the circulation. See Processing of banknotes. machines, without interruption of the treatment process. The process needs to be controlled in a very special way, since there is no possibility of Checking the authenticity. or Verification that what is stated in the documentation matches up with the reality, or that the information in two different documents coincide..