Pre-2005 notes to expire on March 31; RBI says it's an attempt to reduce counterfeiting
Updated: Jan 29, 2014 12:22:08pm
Mumbai, Jan 29 (KNN) In an attempt to reduce the possibility of counterfeiting, Reserve Bank Governor Raghuram G Rajan has said that the withdrawal of pre-2005 currency notes is not intended to check black money or tax evasion, but is a technical action to rationalise notes with better security features.
“It is not intended to get at black money, tax evasion, etc. I am not saying those are good things. This is technical action, in order to withdraw notes which have fewer security features than new notes,” Rajan said in a media briefing after announcement of third quarter monetary policy review yesterday.
It is an attempt to reduce the possibility of counterfeiting and give more reliable notes at the hands of the public, he said. "Of course we want to minimise any inconvenience (to the) public...so this process (of withdrawal) would be very smooth,” he added.
“…RBI has been following a policy of phasing out of certain series of banknotes from time to time. It has now been decided that all old series of banknotes issued prior to 2005 will be completely withdrawn from circulation,” RBI said in a notification.
"All older series of banknotes issued prior to 2005 would be acceptable for all kinds of monetary transactions only till March 31, 2014," the notification added.
Thereafter, it said, the public will be required to approach bank branches for exchange of such currency on an ongoing basis.
The RBI further said pre-2005 notes will continue to be legal tender.
"From July 1, to exchange more than 10 pieces of Rs 500 and Rs 1000 notes, bank branches should obtain from non-customers, proof of their identity and residence," it said.
Last week, the RBI decided to completely withdraw from circulation all bank notes after March 31.
Earlier in the day, RBI Governor Raghuram Rajan said the withdrawal of pre-2005 notes is not intended to check black money but to prevent counterfeiting.
In a letter to all banks, RBI has said, “Please issue suitable instructions to all your branches, to provide exchange facilities to members of public and to stop re-issue of the older series banknotes issued prior to 2005. Notes of such series tendered over the counters may be sorted immediately and deposited in the currency chests under the Linkage Scheme or forwarded to the nearest Issue Office of Reserve Bank of India for disposal.
“Please also advise your branches to extend all cooperation to the members of public so that the withdrawal is carried out in a smooth and non-disruptive manner, without any inconvenience to the public,” RBI added. (KNN/SD)
“It is not intended to get at black money, tax evasion, etc. I am not saying those are good things. This is technical action, in order to withdraw notes which have fewer security features than new notes,” Rajan said in a media briefing after announcement of third quarter monetary policy review yesterday.
It is an attempt to reduce the possibility of counterfeiting and give more reliable notes at the hands of the public, he said. "Of course we want to minimise any inconvenience (to the) public...so this process (of withdrawal) would be very smooth,” he added.
“…RBI has been following a policy of phasing out of certain series of banknotes from time to time. It has now been decided that all old series of banknotes issued prior to 2005 will be completely withdrawn from circulation,” RBI said in a notification.
"All older series of banknotes issued prior to 2005 would be acceptable for all kinds of monetary transactions only till March 31, 2014," the notification added.
Thereafter, it said, the public will be required to approach bank branches for exchange of such currency on an ongoing basis.
The RBI further said pre-2005 notes will continue to be legal tender.
"From July 1, to exchange more than 10 pieces of Rs 500 and Rs 1000 notes, bank branches should obtain from non-customers, proof of their identity and residence," it said.
Last week, the RBI decided to completely withdraw from circulation all bank notes after March 31.
Earlier in the day, RBI Governor Raghuram Rajan said the withdrawal of pre-2005 notes is not intended to check black money but to prevent counterfeiting.
In a letter to all banks, RBI has said, “Please issue suitable instructions to all your branches, to provide exchange facilities to members of public and to stop re-issue of the older series banknotes issued prior to 2005. Notes of such series tendered over the counters may be sorted immediately and deposited in the currency chests under the Linkage Scheme or forwarded to the nearest Issue Office of Reserve Bank of India for disposal.
“Please also advise your branches to extend all cooperation to the members of public so that the withdrawal is carried out in a smooth and non-disruptive manner, without any inconvenience to the public,” RBI added. (KNN/SD)
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