India to withdraw all pre-2005 banknotes

The Reserve Bank of India has published a press release stating that all banknotes issued prior to 2005 (that's everything up to P94 for us collectors) will be withdrawn from 31 March 2014. This is an effort to rein in on its black money and fake currency market that is estimated at 50% of its gross domestic product.

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 The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side.

The Reserve Bank has also clarified that 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 500 rupees and 1000 rupees 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.

Steven Donderdag 23 Januari 2014 at 08:06 am | | news
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