Indian Currency Notes Printed Prior to the year 2005 Will be withdrawn After 31st March 2014

(This Article has been last updated as on 31st July 2015)

IMPORTANT NOTE: 

As on 01st July 2015 , the Last Date for Exchange of all the Indian Currency Notes Printed Prior to the Year 2005 ( All the Indian Currency Notes of the Denominations of Rs 1000/-, Rs 500/-, Rs 100/-, Rs 50/-, Rs 20/-, Rs 10/- and Rs 5/-) is 31-12-2015( 31st December 2015)

Reserve Bank of India has announced on 22nd January 2014, that ‘Indian Currency Notes’ printed and issued prior to the year 2005 would be withdrawn after 31st March 2014, in a move to curb ‘black money’ in the country.

On the Indian Currency Notes printed after the year 2005 will have the year of printing on the reverse side of the currency notes.

According to RBI, the currency notes issued after 2005 have added security features that make counterfeiting difficult.(Not Impossible?!)

The public may exchange the currency notes printed prior to 2005,  by approaching any commercial bank in India.

It is notable that all the currency notes printed prior to the year 2005 are still valid and may be freely circulated. 

People may deposit such currency notes into their accounts with banks, freely.

However, from 1st July 2014, for exchanging  more than 10 pieces of 500 and 1000 rupee notes in a bank where they do not have an account will have to provide proof of residence and identity.

The RBI expects that its move to withdraw the currency notes printed prior to 2005 will make:

  • the black money holders to spend the cash or exchange the same
  • it difficult for printing fake currency notes
  • it easy for the Income Tax authorities to watch the bulk exchanges of currency notes printed prior to 2005 and catch hold of black money holders (Great Expectations?!)
In the opinions of the public, the move of RBI will create a panic in the minds of the public and some bank staff and some shop-keepers might stop receiving currency notes printed prior to the year 2005, as it had been in the case of ‘scribbled/written’ currency notes.
As there is sufficient time of  more than  6 months and more the holders of black money will efficiently do the needful to exchange the currency notes printed prior to 2005 with even brand new fresh currency bundles and keep in their lockers in banks and their houses.

Following  the notice by the Reserve Bank of India, that all ‘Indian Currency Notes’ printed prior to 2005 would be withdrawn after 31st March 2014, the Reserve Bank of India’s Governor-Dr.Raghuram Rajan has  advised the public to start exchanging such notes right now and further said that:

  • Withdrawal of old currency notes from circulation is but a standard international practice and
  • It is not an attempt to demonetize such notes and they would continue to be ‘valid tender’ currency notes and
  • Only in view of less security features in such notes they are to be withdrawn from circulation as recommended by the Indian Union Finance Ministry and
  • It does not have anything to do with the ensuing 2014 General Elections.
It is not clear from the Reserve Bank of India-Governor’s statement whether, all the Commercial Banks in India would be advised to sort out the currency notes in stock with them and stop circulation of all currency notes printed prior to the year 2005 and give only notes printed after 2005 to their customers and public.
Also, it is not clear whether, the banks in India would be advised to keep in their ‘ATM’s currency notes printed after the year 2005 only, to enable stopping of circulation of notes printed prior to 2005.
Public awareness must be created in the matter of exchanging pre-2005 Indian Currency notes by newspapers advertisement and FM Radio and popular and local TV Channels.

(Update on the matter as on 17th March 2014) 

Reserve Bank of India has announced that the withdrawal of currency notes printed prior to the year 2005 is a routine matter and the time limit for the public to exchange such notes at the banks has been extended from 31st March 2014 to 31st December 2014.

(Update on the matter as on 01st January 2015)

RBI has extended the last date for exchange of all the Indian currency noted printed prior to the year 2005 from 31st December 2014 to 31st July 2015/

Update on the matter as on 01st August 2015)

RBI has extended the last date for exchange of all the Indian currency noted printed prior to the year 2005 from 31st July 2015 to 31st December 2015)

According the the Reserve Bank of India, the public may exchange currency notes printed prior to the year 2005 freely at any branch of any bank in India without any restriction of number of notes for exchange.

A majority of such notes have already been withdrawn through the banks and only a limited number of such notes will remain in circulation.

Hence the public in India are requested to get any of the currency notes of any denomination including Rs 1000/- and Rs 500/- printed prior to the year 2005.

Also, all the currency notes printed prior to the year 2005 may by used for transactions and all the above currency notes will continue to be legal tender.

The public on hearing the above matter of extension of the time limit for the exchange of currency notes including those of Rs 1000/- and Rs 500/- in the news of television channels and newspapers, should not get confused  whether Rs 1000/- and Rs 500/- currency notes in India are demonetized by the Reserve Bank of India, in view of the ensuing 2014 General Elections in India for the Lok Sabha, including some of the State Assemblies.  

Note:
The Reserve Bank of India extended the date for exchange of currency notes printed prior to the year 2005, 
from 31st December 2014 to 30th June 2015 
and further
from 01st July 2015 to  31st December 2015.

(Update on the matter as on 17th March 2014) 

Reserve Bank of India has announced that the withdrawal of currency notes printed prior to the year 2005 is a routine matter and the time limit for the public to exchange such notes at the banks has been extended from 31st March 2014 to 31st December 2014.

(Update on the matter as on 01st January 2015)

RBI has extended the last date for exchange of all the Indian currency noted printed prior to the year 2005 from 31st December 2014 to 31st July 2015/

Update on the matter as on 01st August 2015)

RBI has extended the last date for exchange of all the Indian currency noted printed prior to the year 2005 from 31st July 2015 to 31st December 2015)

Share This Post

Post Comment