Reserve Bank of India (RBI) on 3 March 2014 extended the date for exchange of the pre-2005 banknotes to 1 January 2015. RBI in its latest released has advised the banks to facilitate the exchange of these notes for full value and without causing any inconvenience to the public.
RBI in its notification has requested people to co-operate actively in the withdrawal process and said that the withdrawal exercise is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time. RBI has claimed that a majority of such notes have already been withdrawn through the banks and only a limited number of notes remain with the public.
In its notification, RBI has also clarified that public can continue the use of these notes freely for any transaction as the all such notes continue to remain legal tender. The Reserve Bank will continue to monitor and review the process so that the public is not inconvenienced in any manner.
The Reserve Bank of India (RBI) had taken a rationale step of withdrawal of banknotes printed prior to 2005 as these banknotes have fewer security features compared to banknotes printed after 2005. It is standard international practice to withdraw old series notes.
Earlier, RBI in its announcement on 22 January 2014 said that after 31 March 2014 all the banknotes issued prior to 2005 will be withdrawn completely from circulation. From 1 April 2014, the public will be required to approach banks for exchanging these notes.