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Withdrawal of Currency Notes in Circulation
Feb 26, 2014

The Reserve Bank of India (RBI) has announced the decision to withdraw from circulation all currency notes printed prior to 2005. It is a standard international practice to withdraw old series of bank-notes from time to time. The reason for withdrawal of bank-notes printed prior to 2005 is to remove them from the market as they have fewer security features compared to bank-notes printed after 2005. It is expected that this will prevent counterfeiting of bank-notes. The RBI has already been withdrawing these notes from the market in a routine manner through banks. In RBI’s view, the volume of the bank-notes printed prior to 2005 today, still in circulation, is not significant enough to impact general public in a large way.

The schedule of withdrawal announced by RBI is as under:

  • All older series of bank-notes issued prior to 2005 would be acceptable for all kinds of monetary transactions only till March 31, 2014.
  • Thereafter the public will be required to approach bank branches which would provide them exchange facilities on an ongoing basis.
  • From July 1, 2014 onwards, members of public can exchange any number of these old series notes from the bank branches where they have their account. However, non-customers would have to furnish their identity and residence proof to the Bank to exchange more than 10 pieces of Rs. 500 and Rs. 1000 notes.
  • These notes will continue to be legal tender and, therefore, no end date has been specified for the exercise.


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