To reduce a work load on an operator when bundled paper bills of a fit note and an unfit note of a predetermined denomination are collected.

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 banknote types according to two fitness categories: a fit note and an unfit note; a stacker 16 for stacking the banknotes to be taken out based on the recognition result; bundling units 3A (3B) each including bundling stacking units 21 for stacking the banknotes for bundling, a bundling unit 22 for bundling 100 banknotes stacked in the bundling stacking units 21 to prepare a banknote bundle, and a bundle dispensing unit 23 for dispensing the prepared bundle to the outside of the apparatus; and a transport control unit 172 for recognizing fit and unfit notes of specific denominations, and controlling the banknote transport unit 13 to stack fit banknotes of the specific denominations in the bundling stacking units 21 corresponding to the fit notes of the specific denominations and to stack unfit banknotes of the specific denominations in the bundling stacking units 21 corresponding to the unfit notes of the specific denominations.