The Reserve Bank of India, on Wednesday, warned that it would withdraw from circulation all banknotes that had been issued before 2005.
According to a central bank advisory, anybody who had such currency notes would have to approach a bank in order to exchange them before April 1, 2014. The RBI would start withdrawing the notes after March 31, 2014. “The public can easily identify the notes in question as the notes issued before 2005 do not have the year of printing on the reverse side. The notes issued before 2005 will continue to be legal tender… banks will be required to exchange the notes,” the RBI said.
Asking people not to panic and cooperate in the withdrawal process, the Reserve Bank of India (RBI) said old notes will continue to be legal and can be exchanged in any bank after April 1.
“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 RBI said. 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.
Although the RBI did not give any reason for withdrawal of pre-2005 currency notes, the move is expected to unearth black money held in cash.
As the new currency notes have added security features, they would help in curbing the menace of fake currency.
At present, currency notes in denominations of Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 and Rs 1,000 are issued.