Each Federal Reserve District maintains cash operations to process orders for currency and accept deposits of excess and unfit currency. When financial institutions send money to the Fed for deposit, it is counted, sorted, and tested for wear and tear. If a note is worn out, it is destroyed.
The Federal Reserve Banks also act as distribution centers for new currency produced by the Bureau of Engraving and Printing. To accommodate the growing demand for U.S. currency and to replace unfit currency that has been destroyed, the Federal Reserve issues newly printed currency each year. Currency orders are filled with fit (used) and new currency.
Each Federal Reserve District maintains coin depositing and ordering operations to accept excess coin and process coin orders from depository institutions. Commemorative coins are available from the United States Mint.