Abstract: An arrangement for handling banknotes having a banknote magazine (10) which is arranged to permit banknotes (39) to be fed into as well as out from the magazine one by one, and a memory device (44) for storing continuously updated information about the contents of the magazine (10). The banknote magazine has a controllably rotatable drum (10), containing a plurality of separate magazine compartments (11), formed by sector-like pockets, each of which extends in a generally radial direction into the drum (10) from an opening (27) located at the periphery of the drum. Through rotation of the drum (10), a selectable magazine compartment (11) can be placed with its opening (27) in front of an infeed and/or outfeed station (17, 19, 21) in order to permit an infeed of a banknote into or an outfeed of a banknote from said compartment (11) by an infeed and outfeed device (28), located within the magazine compartment (11) and serving also to hold a banknote fed into the magazine compartment (11) within the latter.