Mumbai: All currency notes issued before 2005 will be completely withdrawn from circulation after March 31, 2014. From April 1, people will have to exchange these notes at banks, the Reserve Bank of India announced on Wednesday.
It said that all banks will provide exchange facilities and asked the public not to panic, but to cooperate with the banks.
The RBI said that people can identify notes issued prior to 2005 as these do not have the year of printing written on the reverse.
The RBI also clarified that notes issued before 2005 will still be legal tender, which means that banks will exchange them for new notes for both customers and non-customers.
Next: Furnish ID proof to exchange notes
Furnish ID proof to exchange notes
Mumbai: Come July and the notes that have been issued before 2005 will be non-fuctional, said an RBI notice on Wednesday.
In the case of non-customers who want to exchange more than 10 pieces of Rs 500 and Rs 1,000 notes from July 1, 2014 onwards, they will have to furnish proof of identity and residence to the bank branch at which he or she wants to exchange the notes.
Explaining the rationale behind the withdrawal of these series of notes, the RBI spokesperson said that the RBI, which is the note issuing authority would like to maintain the best practices followed internationally of having fewer designs of notes in circulation.
The apex bank has in recent years been withdrawing notes issued prior to 2005 without any publicity. Now they have decided to withdraw it at one go.
Dismissing any suggestion that this move is being made to curb black money, the spokesperson said to curb black money the notes would have to be demonetised and this is only a withdrawal of notes.
The Mahatma Gandhi series first issued in 1996 itself has some three types of designs. There have been designs with tigers, elephants, deers, mountain peaks etc., in different years.
R.K Bansal, executive director, IDBI Bank, commenting on this move said “The RBI is trying to do away with those currency notes, which lacks security features. This would enable banks in identifying the genuine currency notes and help check the growth of counterfeit currency in the system.”
It may be recalled that some years ago the RBI had withdrawn the Rs 5 notes and then brought it back in 2009.
