RBI withdraws currency issued prior 2005



India withdraws old currency notes issued before 2005

The Reserve Bank of India (Central Bank) advised all banks on Wednesday 22nd Jan 2014 that Currency notes which was issued before 2005 will be completely withdrawn from circulation after 31st March, 2014.

This move by the country's central bank is seen as an attempt to control the circulation of "Black Money" that has not been declared for tax as income.

A Notification from RBI says that “From 1st April, 2014, the public (Customers & Non- Customers) are required to approach banks for exchanging these notes which was printed before 2005".

The RBI said that currency notes that issued prior to 2005 can be identified easily as they do not have the year of printing marked on reverse side of the note.



Reverse Side of Currency Note with Year

However, the RBI said in a statement that from 1st July 2014, non-customers who wants to exchange more than 10 notes of 500 and 1,000 rupees denomination should furnish proof of identity & address / residence to the bank.

For further details regarding the withdrawal of currency notes pre-2005, you can check out the press release byu RBI in http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30458

Update:
RBI has extended the date for exchanging notes issued prior to 2005, Please visit the foll. link to know further details:
http://www.subramoneyplanning.com/2014/04/rbi-extends-for-exchanging-pre-2005-notes.html

Categories: Banking Basics, RBI