To significantly improve work efficiency when banknotes of the same denomination are separated into a loose banknote and bundled banknotes for each fit and unfit category.

A banknote processing apparatus includes: a banknote transport unit 13 for individually feeding and transporting inserted banknotes; a banknote recognition unit 14 for recognizing banknote denominations and recognizing the degree of stain of the transported banknotes according to three fitness categories: an ATM fit note, a teller fit note, and an unfit note; a stacker 16 for stacking the banknotes to be taken out based on the recognition result; a bundling stacking unit 21 for stacking the banknotes for bundling based on the recognition result; a bundling unit 22 for bundling 100 banknotes stacked in the bundling stacking unit 21; a transport control unit 172 for controlling the banknote transport unit 13 to stack banknotes of ATM fit notes in the stacker 16, banknotes of teller fit notes and unfit notes in the bundling stacking unit 21; and a bundle control unit 173 for controlling the bundling unit 22 to bundle the banknotes of teller fit and unfit notes stacked in the bundling stacking unit 21 in a distinguishable manner.