RBI clarifies on withdrawal of banknotes issued prior to 2005

The Reserve Bank of India (RBI) has clarified that it has decided to withdraw all old series of banknotes issued prior to 2005 from circulation.

RBI has been following a policy of phasing out certain series of banknotes from time to time.

Accordingly, RBI said, all older series of banknotes issued prior to 2005 would be acceptable for all kinds of monetary transactions only till 31 March 2014.

Thereafter, the public will be required to approach bank branches, which would provide them exchange facilities on an ongoing basis.

These notes will continue to be legal tender.

However, from 1 July 2014, to exchange more than 10 pieces of Rs500 and Rs1000 notes, bank branches should obtain from non-customers, proof of their identity and residence.

RBI said it would issue a public notification informing public of the exercise and soliciting their co-operation and enabling them to identify the older series separately.

Separately, RBI has instructed banks 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 the RBI for disposal.

It has advised banks 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.