Withdrawal of bank notes issued prior to 2005 by RBI

Update:  Read the updated news on pre-2005 notes here.

RBI has advised that it shall completely withdraw from circulation all bank notes issued prior to 2005 after 31^st March 2014.  Public shall be required to exchange such notes with banks from 1^st April 2014.  This facility of exchange shall be provided by the banks for customers as well as non-customers.  However, from 1^st July 2014, non-customers shall be required to furnish proof of identity and residence to the bank where the exchange is taking place, if such exchange is for more than 10 pieces of Rs. 500 and Rs. 1000 denominated notes.

How to identify bank notes issued prior to 2005

Bank notes issued prior to 2005 do not have year of printing on the reverse side.

The reverse side of the above bank note (click on picture to enlarge) do not have the year of printing.  Such notes shall be withdrawn from circulation after 31^st March 2014.

    

However, the reverse side of the above bank note states the year of print as 2011 (bottom middle).  Such notes shall continue after 31^st March 2014.

Things to be kept in mind

One needs to keep the following things in mind:

1. Withdrawal applies to all denomination of notes and is not restricted to Rs. 500 or Rs. 1000 notes.  Thus even if one has Rs. 10 or Rs. 100 note which is issued prior to 2005, then such notes need to be exchanged with banks.
2. Though such notes shall continue to be legal tender for the time being and can be used, it is advisable to exchange it with the bank at the earliest possible.
3. To avoid hassles, if one is exchanging the notes after 30^th June 2014, it is advisable to exchange it with the branch where one has account.  Otherwise proof of identity and residence needs to be furnish if the exchange is for more than 10 pieces of Rs. 500 and Rs. 1000 denominated notes.

RBI has provided short period to exchange such notes.  However, since this is an ‘advise’, there is a possibility of the deadline getting extended.  RBI needs to provide proper communication to all participants and to public at large to ensure that there is no panic on the street and adequate time is available to exchange such notes.

Photo Source: RBI Website