"Banknotes issued prior to 2005 to be withdrawn: RBI Advisory"
"The Reserve Bank of India has today advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. 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 The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side.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 and `1000 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.
Currency notes issued before 2005 to be withdrawn post March 31: RBI-Economic times 23.01.2014
MUMBAI: Anybody with currency bundles stashed under the mattress may need to check them. The Reserve Bank of India has said that banknotes issued before 2005 will be completely phased out after March 31 and replaced with new ones, in a move that could counter black money and help weed out fake currency circulating through the system. Starting April 1, "the public will be required to approach banks for exchanging these notes," the central bank said in a release on Tuesday.
"Banks will provide exchange facility for these notes until further communication." This doesn't mean notes issued before the cut-off date won't continue to be legal tender, the Reserve Bank clarified.
"Banks are required to exchange the notes for their customers as well as for non-customers," the central bank said. From July 1 onward, however, things could get more interesting at bank counters. "To exchange more than 10 pieces of Rs 500 and Rs 1,000 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," RBI said.
The central bank has helpfully urged the public not to panic and to "actively co-operate in the withdrawal process." RBI said there was nothing out of the ordinary about the measure. "Globally, it is a practice across central banks to phase out banknotes at regular intervals," said an RBI official requesting anonymity.
"The design and security features of the notes have been changing regularly. These are old series notes which need to be phased out of the system." Identifying the notes to be withdrawn is easy - they are those that don't have a year printed on them. "The notes issued before 2005 do not have on them the year of printing on the reverse side," the central bank said. The move should help in catching counterfeits.
As of March 2012, as many as 5 lakh fake notes had been detected in the banking system, a 31% jump from the year before. In its annual report, RBI asked banks to ensure that the notes they receive over the counter are sent back into circulation only after they being properly authenticated.
"Banks will provide exchange facility for these notes until further communication." This doesn't mean notes issued before the cut-off date won't continue to be legal tender, the Reserve Bank clarified.
"Banks are required to exchange the notes for their customers as well as for non-customers," the central bank said. From July 1 onward, however, things could get more interesting at bank counters. "To exchange more than 10 pieces of Rs 500 and Rs 1,000 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," RBI said.
The central bank has helpfully urged the public not to panic and to "actively co-operate in the withdrawal process." RBI said there was nothing out of the ordinary about the measure. "Globally, it is a practice across central banks to phase out banknotes at regular intervals," said an RBI official requesting anonymity.
"The design and security features of the notes have been changing regularly. These are old series notes which need to be phased out of the system." Identifying the notes to be withdrawn is easy - they are those that don't have a year printed on them. "The notes issued before 2005 do not have on them the year of printing on the reverse side," the central bank said. The move should help in catching counterfeits.
As of March 2012, as many as 5 lakh fake notes had been detected in the banking system, a 31% jump from the year before. In its annual report, RBI asked banks to ensure that the notes they receive over the counter are sent back into circulation only after they being properly authenticated.
http://economictimes.indiatimes.com/news/economy/policy/currency-notes-issued-before-2005-to-be-withdrawn-post-march-31-rbi/articleshow/29210580.cms?fb_action_ids=621851247851909&fb_action_types=og.recommends&fb_source=other_multiline&action_object_map=%5B577061009039124%5D&action_type_map=%5B%22og.recommends%22%5D&action_ref_map=%5B%5D
Want to exchange soiled notes? Don't forget your identity proof--Business Standard
RBI to withdraw all pre-2005 notes; move seen as effort to unearth black money
All currency notes issued before 2005 would be withdrawn from circulation, the Reserve Bank of India (RBI) said on Wednesday. People could approach banks for exchange of such notes from April 1.
Though the central bank has said it regularly withdraws soiled and old notes from circulation and this is a routine exercise, the move is significant because of its timing — ahead of the Lok Sabha elections, likely in the middle of April. Also, the conditions set this time have led many to believe it might be an effort to unearth black money.
If non-customers want to exchange more than 10 pieces of Rs 500 or Rs 1,000 notes at a bank after June 30, they have to furnish their proof of identity and residence. This means the bank can ask them for copies of their PAN or Aadhaar or driving licence.
Apart from the black-money angle, according to bankers, there also are cases where people have made exchanging soiled and old notes at a discount their business and are making profits. RBI’s insistence on producing proof of identity could also be aimed at discouraging such practices.
“Old notes do not have as many security features as the newer ones. Identifying fake currency is easier in the newer ones. This is why RBI wants old notes withdrawn,” a banker said.
Government officials, however, said the finance ministry had never suggested RBI any such move for tackling black money, as demonitisation of currency could have repercussions for the economy, particularly in the case of the commonly-used Rs 500 notes. They said RBI might have decided to withdraw old notes from circulation because a lot of counterfeit currency had entered the market.
“It is not demonitisation. If that happens, gold prices will go up, with people beginning to put their money in non-productive assets. I don’t think it can check black money... Since the old notes don’t have adequate safeguards, these can be replicated easily. There won’t be too many genuine notes of Rs 500 and Rs 1,000 issued before 2005. So, by this move, counterfeit currency will get eliminated,” said a former CBDT chairman closely involved in drafting of a report on black money.
Though the central bank has said it regularly withdraws soiled and old notes from circulation and this is a routine exercise, the move is significant because of its timing — ahead of the Lok Sabha elections, likely in the middle of April. Also, the conditions set this time have led many to believe it might be an effort to unearth black money.
If non-customers want to exchange more than 10 pieces of Rs 500 or Rs 1,000 notes at a bank after June 30, they have to furnish their proof of identity and residence. This means the bank can ask them for copies of their PAN or Aadhaar or driving licence.
Apart from the black-money angle, according to bankers, there also are cases where people have made exchanging soiled and old notes at a discount their business and are making profits. RBI’s insistence on producing proof of identity could also be aimed at discouraging such practices.
“Old notes do not have as many security features as the newer ones. Identifying fake currency is easier in the newer ones. This is why RBI wants old notes withdrawn,” a banker said.
Government officials, however, said the finance ministry had never suggested RBI any such move for tackling black money, as demonitisation of currency could have repercussions for the economy, particularly in the case of the commonly-used Rs 500 notes. They said RBI might have decided to withdraw old notes from circulation because a lot of counterfeit currency had entered the market.
“It is not demonitisation. If that happens, gold prices will go up, with people beginning to put their money in non-productive assets. I don’t think it can check black money... Since the old notes don’t have adequate safeguards, these can be replicated easily. There won’t be too many genuine notes of Rs 500 and Rs 1,000 issued before 2005. So, by this move, counterfeit currency will get eliminated,” said a former CBDT chairman closely involved in drafting of a report on black money.
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