get your notes exchanged to new one

RBI grants 9 more months to exchange notes printed before 2005

 

If you have currency notes which were printed and issued before 2005, you don’t have to rush to get them exchanged with the new ones in this financial year.

The Reserve Bank of India (RBI) today has extended the date for exchanging the currency notes, which were  printed before year 2005, to January 2015. The new date to get your old currency note exchanged is now 1st January 2015, which means an additional nine months. This includes the bigger denominations of Rs.500 and Rs.1,000.

Earlier on 22 January, RBI had issued a circular stating that from 1st April 2014, it would withdraw from circulation all currency notes which were printed before year 2005, and after July 1, 2014, exchange of more than 10 pieces of Rs 500 and Rs 1,000 notes would not be allowed at a bank where you are not the customer, unless you furnish proof of identity and residence. The public was advised to approach banks to exchange such notes. Now this date stands extended.

The currency notes issued before 2005 do not have the year of printing on the reverse side. In notes issued after 2005, the year of printing is visible at the bottom of the reverse side.

RBI has clarified that the general public “can continue to freely use these notes” for transactions and can unhesitatingly receive these notes in payment as all such notes remain legal tender. The Reserve Bank of India in a statement said “RBI has also advised banks to facilitate the exchange of these notes for full value and without causing any inconvenience whatsoever to the public”.

RBI said it will monitor and review the withdrawal and exchange process so that the public is not inconvenienced in any manner.

It further added that  “This withdrawal exercise is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time. A majority of such notes have already been withdrawn through the banks and only a limited number of notes remain with the public”. Earlier, the RBI had withdrawn a certain series of currency notes at the bank level but bearers were not asked to get them replaced.

RBI governor had earlier said the withdrawal was not an attempt at demonetization, nor had it anything to do with the forthcoming general elections. Post-2005 notes have added security features and help in curbing the menace of fake currency. At present, currency notes are issued in denominations of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1,000.

According to the RBI’s Annual Report, around 14.1 billion pieces of soiled banknotes were processed and removed from circulation during 2012-13. The number of bank notes withdrawn from circulation and eventually disposed of at the RBI offices increased over the previous year by 358 million pieces. During 2012-13, around 8.97 billion pieces were processed through 59 Currency Verification and Processing Systems (CVPS) and the remainder were disposed of under other modes.

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