City Kemp News
Last week, the Reserve Bank of India (RBI) said currency notes issued before 2005 can be exchanged at bank branches till 31 December, extending the previous deadline of 30 June. This is not the first such extension. Earlier, the deadline was extended from 1 January to 30 June.
Withdrawal of pre-2005 notes
In January 2014, RBI had decided to withdraw all currency notes issued before 2005, saying they have fewer security features compared with those printed later. It is a standard international practice to withdraw notes in old series.
Internationally, multiple series of notes are not simultaneously kept in circulation. RBI has already been withdrawing these notes in a routine manner through banks. Hence, you should not be getting any notes issued before 2005 from your bank. It is estimated that the volume of such notes issued before 2005 in circulation is not significant.
In the meantime, the RBI has already asked banks to stop re-issuing pre-2005 series notes over the counters or through automated teller machines (ATMs).
Besides it will continue to monitor and review the process to avoid any inconvenience. Banks have been instructed to forward any notes issued before 2005 to RBI. However, the RBI has not explained the procedure to follow if you continue to hold pre-2005 notes after 31 December.
Did you know
*Notes printed before 2005 do not have the year of printing on the reverse side in the lower middle portion.
*Remember that notes issued before 2005 will continue to be legal tender. This means the notes will continue to have monetary value.
*You can continue to freely use these notes for transactions till 31 December.
*There is no restriction in the number of notes that can be exchanged at a bank branch.
*You can exchange these notes at any bank branch, even if you are not a customer of the bank.
*You can also exchange notes at as many branches as you want on the same day. Banks have been advised to freely provide this exchange facility to customers as well as non-customers.
*If you want, you can get the amount which you exchange credited into your bank account.
*The exchange will be done free of cost by all bank branches. You will get full value for the notes that you exchange.
