Extension of date for withdrawl of currwncy note issued prior to 2005

For security reasons Reserve Bank Of India had decided to withdraw bank note printed prior to 2005 and these are supposed to get exchanged before 30th June 2014 but these note be legal even after 1st July 2014 as RBI clarfied, Clarfication can be read below:-

RBI Clarification
Further to our Press Release dated January 22, 2014 on the subject and in response to the queries raised, the Reserve Bank of India (RBI) clarifies that the rationale behind its move to withdraw banknotes printed prior to 2005 is to remove these banknotes from the market because they have fewer security features compared to banknotes printed after 2005. It is standard international practice to withdraw old series notes.


The RBI has already been withdrawing these bank notes from the market in a routine manner through banks. In Reserve Bank’s view, the volume of the banknotes printed prior to 2005 today, still in circulation, is not significant enough to impact the general public in a large way.
However, it advises that the members of public may initiate the process of exchanging notes at bank branches at their convenience. Further, even July 1, 2014 onwards, members of public can exchange any number of these old series notes from the bank branches where they have their accounts.
The RBI assures that it will continue to monitor and review the process of withdrawal of old series notes so that the public is not inconvenienced in any manner.
Regardless of the above, the RBI reiterates that the notes printed prior to 2005 will continue to be legal tender.

Alpana Killawala
Principal Chief General Manager

Press Release: 2013-2014/1491
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RBI/2013-14/509
DCM(Plg) No.G- 19/3880/10.27.00/2013-14

March 03, 2014

The Chairman / Managing Director/ Chief Executive Officer
All Scheduled Commercial Banks
Primary(Urban) Co-operative Banks/RRBs
Dear Sir /Madam
Withdrawal of all old series of Banknotes issued prior to 2005
Please refer to our circular DCM (Plg) No. G-17/3231/10.27.00/2013-14 dated January 23, 2014 on the captioned subject which was followed by a Press Release on January 24, 2014 (copy enclosed).
2. On a review of the matter, it has been decided to extend the date for exchanging the pre-2005 banknotes to January 01, 2015. These instructions have been included in a Press Release dated March 03, 2014 (copy enclosed).
3. You are advised to facilitate the exchange of such notes for full value without causing any inconvenience to the public, whatsoever. These notes will retain their legal tender status and the public can continue to use these for any transaction/ payment.

4. As advised, please issue suitable instructions to all your branches to provide exchange facilities to members of public and to stop re-issue of the pre- 2005 series banknotes. Please also ensure that such notes are not dispensed through the ATMs/ over your counters. The methodology to be followed for dealing with the Pre-2005 series banknotes contained in Para 3 of the circular dated January 23, 2014 referred to above remains unchanged.

5. A list of dos and don’ts, is being enclosed for your guidance.
6. Please acknowledge receipt.
Yours faithfully
(B.P Vijayendra)
Principal Chief General Manager
Encl: 3 sheets

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DOs

1. Banks should sensitize the members of public that the pre-2005 notes would continue to be legal tender. Banks should endeavour to organize note exchange melas in semi-urban/rural areas.
2. All denominations of banknotes issued prior to 2005 series have to be exchanged.
3. These notes must be freely accepted and exchanged by all bank branches from all members of public, whether customers or non-customers.
4. The process of exchange at bank branches should be started forthwith and undertaken as per the convenience of members of public.
5. The exchange of notes should be done free of cost.
6. The value of such notes may be credited in customers’ account, if desired.
7. The value of such notes payable shall be in terms of the RBI, Note Refund Rules, 2009.

DON’T

1. Banks should not place any restriction on the number of banknotes to be exchanged by a member of the public.
2. Banks should not issue pre-2005 series notes over the counter or through ATMs.
3. Currency chest branches should not refuse pre -2005 banknotes from their linked branches.