The Reserve Bank of India (RBI) has announced its plans to withdraw all currency notes issued before 2005. Financial experts believe that the move is largely aimed at removing fake or counterfeit currency embedded into the financial system as well help uncover the big black market currency in the country. While the motives of RBI are unquestionably good, there has been some quantum of confusion amongst the general public as to whether the notes they have would need replacement or not. Read on to find out if the currency notes in your pocket or ones stashed in your locker need to be changed.
Additional Reading: What To Do When You Get Fake Notes From An ATM
Identifying Pre-2005 Currency Notes
Currently the Reserve Bank of India prints currency notes in the denomination of Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500 and Rs. 1,000. All the notes printed before the year 2005 do not have the year of printing marked on them.
All currency notes printed post 2005 have the year of printing clearly printed in the middle of the bottom row on the backside of the note. If your banknote has no year of printing on the back, it means the note was printed before 2005 and needs to be exchanged with the bank as per the RBI deadline. All notes with the year of printing indicated on the currency note would stay in operation since all of them were printed after 2005.
Possible Reasons for Withdrawal
The reason for the withdrawal of old currency has more to do with streamlining the number of currency variants than with anything else. Of course, the government is worried about the inflow of fake currency and hopes to tackle it by using all notes printed post 2015, which are more technically superior and difficult to replicate by fake currency mongers.
Additional Reading: How The Budget 2017 Can Help Ease The Aftermath of Demonetisation
How to Exchange Old Currency Notes
So, now that you have identified your currency notes and shortlisted the ones that need to be changed, a simple exchange procedure has been revealed in the press release of the Reserve Bank of India. First things first, there should be no reason to panic whatsoever as the RBI has clearly stated that all old notes would continue to be completely legal and can be exchanged at any bank after April 1, 2014.
First things first! There should be no reason to panic whatsoever since the RBI has clearly stated that all old notes would continue to be completely legal and can be exchanged at any bank after April 1, 2014.
All public sector, as well as private banks, have been asked to create a dedicated exchange counter where both account owners, as well as non-account owners of that bank or branch, can exchange their old currency notes for new ones. These exchange counters will become operation from 1st April 2014.If you have a lot of old currency notes with you, you may want to exchange them, before 30th June 2014. So why is this date important? All exchanges done before 30th June would be unconditional. For any exchange of more than ten pieces of old Rs. 500 or Rs. 1,000 notes after that date would require identity proof and address to be shared with the bank if you are a non-customer of that bank.
These exchange counters will become operational from April 1, 2014. If you have a lot of old currency notes with you, you may want to exchange them before June 30, 2014. So why is this date important? All exchanges done before 30th June would be unconditional. For any exchange of more than ten pieces of old Rs. 500 or Rs. 1,000 notes after that date would require identity proof and address to be shared with the bank if you are a non-customer of that bank.
So, why is this date important? All exchanges done before June 30th would be unconditional. Any exchange of more than ten pieces of old Rs. 500 or Rs. 1,000 notes after that date would require an identity proof and address to be shared with the bank if you are a non-customer of that bank.
Additional Reading: Demonetisation For Dummies: A Safety Guide To Cashless & Online Transactions
So far, in India, there has been no official declaration regarding the lifespan of a currency note. But, if you’re tired of using all that hard cash, then maybe it’s time to switch to a card. We have plenty of Credit Cards lined up for you.
Thanks for the post. Really informative for the general public like me.
This is bullshit news. what if I had a 1000 rs note in my drawer somewhere and one day I want to by beer and and find that note. and go to the bottle-shop to find that note is obsolete. then i decide to burn that note. Will that be ok or not ok? If it’s ok what stops me from burning a note now that perfectly ok. See government issued that note. they cant say one day oh well this note is obsolete.
Hi Anindya,
The Government has made provisions to exchange old notes for new ones within a certain timeline. We suggest that you make a thorough search of your belongings so that you don’t miss out on getting the new notes and losing money. Click here for more information on this.
Cheers,
Team BankBazaar
Hello Experts,
My mom have around 1.2 lakh notes older than 2005 , bank isn’t accepting these notes.
What can be done in order to either exchange or deposite in the account?
Please advise.
Hi Chetan,
The last date for exchanging pre-2005 currency notes was December 31, 2015. Pre-2005 notes will be accepted at select RBI branches.
Cheers,
Team BankBazaar
Dear sir,
I went to day ie, 24th Nov 2016 to State Bank of India, Plaza Chowk, At Ranchi. To deposit in my account but the personal at desk told be this is pre 2005 note cannot be deported .
Please advice……..
Regards,
Ishwar rao.
Hi Ishwar, Banks have stopped accepting pre-2005 notes. You will need to go to a Reserve Bank of India (RBI) branch to exchange those notes.
Hi Sir ,
Please go through this Page and please read point number 3 (Updated as on November 28, 2016)
What’s your View Now ? Will the bank accept Pre 2005 Notes Now ??
https://www.rbi.org.in/Scripts/FAQView.aspx?Id=119
Hi Gourav, You may be able to deposit the amount but as we mentioned, to exchange the notes, you will need to go to an RBI branch.
Which all branches are there where we can exchange this currency. Please help.
Hi Ashutosh, Banks have stopped accepting pre-2005 currency. You might need to visit a Reserve Bank of India branch to exchange them.
Sir, me Hindi me likhraha hu. Meri maa ke pass 1000 aur 500 ke 19000 rupye he. Jo white patti bale he. Jis par koi San nahi he. 2005 ke note he. Please kahan change hoge . meri madad kare . Dhanybad
Hi Shyam, You can exchange the pre-2005 notes at select Reserve Bank of India branches.
Dear expert,
Where is RBI in ALLAHABAD and how these notes can be exchanged easily.
Hi Pradeep, If you check on the RBI website, you will be able to find out where the RBI branches are located.
I HAVE OLD 1000 NOTE . CAN I EXCHANGE NOW WITH THE RBI AND WHAT ARE THE PROCEDURE.
Hi Anoop, You can exchange your old notes at a RBI branch near you. The bank staff there will help you.
i have a ten rupees note, how to know the published of that note
Hi MD Adnan, If the Rs. 10 note was printed before 2005 there will be no mention of the year of printing on the note. However, if it was printed post-2005, you’ll find the year of printing mentioned in the middle of the bottom row on the backside of the note. Cheers, Team BankBazaar