Indian Banknotes issued prior to 2005 to be withdrawn: RBI Advisory

           banknote_Fotor     Come April 1, 2014, Bank Notes issued prior to 2005 will be part of Collector’s Item.

Banks notes issued prior to 2005 do not have the year of issuance printed on them, as compared to bank notes issued after 2005 which have the year of issuance printed on them.

The Reserve Bank of India has on January 22, 2014 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. Banks will provide exchange facility for these notes until further communication.

The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side. (Please see the illustration)

Yes, the notes issued before 2005 will continue to be legal tender. This would mean that banks are required to exchange the notes for their customers as well as for non-customers.

From July 01, 2014, however, to exchange more than 10 pieces of Rs500 and Rs1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes.

The Reserve Bank has appealed to the public not to panic. They are requested to actively co-operate in the withdrawal process.

So, Indian residents start pulling out the old bank notes stored safely in your house and visit the bank now. The window for exchange is short, so visit your bank branches as soon as possible.

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