The Reserve Bank of India has advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes.People across the country will have to exchange 36,984 million pieces of notes issued before 2005, which is valued at Rs 3,61,229 crore according to Financial Express.
The RBI has already been withdrawing these bank notes from the market in a routine manner through banks. It is standard international practice to withdraw old series notes. The volume of the banknotes printed prior to 2005 today, still in
circulation, is not significant enough to impact the general public in a
large way. RBI's
move to withdraw currency notes printed before 2005 is to check
counterfeit notes and these notes will continue to be legal tender even
after the July deadline.
How to identify notes issued before 2005: You can easily distinguish the currency notes issued before 2005 as these currencies do not have the year of printing on reverse side. The year of printing is visible at the middle of the bottom row in notes issued after 2005.
(Photo courtesy: RBI)
Will pre-2005 notes have no monetary value after 31 March? The Reserve Bank has clarified that the notes issued before 2005 will continue to be legal tender. This means currency would hold monetary value but would be only acceptable at banks where the public can exchange the notes. In other words, the pre-2005 notes would be acceptable only at banks.
How to exchange pre-2005 notes: Old notes will continue to be legal and can be exchanged in any bank. However, from July 1, 2014, persons seeking exchange of more than 10 pieces of Rs. 500 and Rs. 1,000 notes will have to furnish proof of identity and residence to the bank. If you are an account holder of the bank, these proofs are not needed.
Why the RBI is withdrawing notes issued before 2005: The RBI has said that notes printed prior to 2005 have fewer security features compared to banknotes printed after 2005. The RBI has already been withdrawing these bank notes from the market in a routine manner through banks.
(Photo courtesy: RBI)
Will pre-2005 notes have no monetary value after 31 March? The Reserve Bank has clarified that the notes issued before 2005 will continue to be legal tender. This means currency would hold monetary value but would be only acceptable at banks where the public can exchange the notes. In other words, the pre-2005 notes would be acceptable only at banks.
How to exchange pre-2005 notes: Old notes will continue to be legal and can be exchanged in any bank. However, from July 1, 2014, persons seeking exchange of more than 10 pieces of Rs. 500 and Rs. 1,000 notes will have to furnish proof of identity and residence to the bank. If you are an account holder of the bank, these proofs are not needed.
Why the RBI is withdrawing notes issued before 2005: The RBI has said that notes printed prior to 2005 have fewer security features compared to banknotes printed after 2005. The RBI has already been withdrawing these bank notes from the market in a routine manner through banks.
No comments:
Post a Comment