RBI extends 6 months time for exchanging pre-2005 currency note
The Reserve Bank on Tuesday granted an additional 6 months for the public to exchange currency notes printed before 2005, including Rs 500 and Rs 1,000 denominations, and set a deadline of June 30, 2015. Soliciting cooperation from the public in withdrawing these notes from circulation, the Reserve Bank has urged them to deposit the old design notes in their bank accounts or exchange them at a bank branch convenient to them.
Earlier, in March 2014, the RBI had set the last date for public to exchange these notes was January 01, 2015. The Reserve Bank has stated that the notes can be exchanged for their full value. It has also clarified that all such notes continue to remain legal tender.
Explaining the move, the Reserve Bank said that now the notes in Mahatma Gandhi series have been in circulation for a decade. A majority of the old notes have also been withdrawn through bank branches. It has, therefore, decided to withdraw the remaining old design notes from circulation.
Not having currency notes in multiple series in circulation at the same time is a standard international practice, the Reserve Bank has pointed out. The Reserve Bank will continue to monitor and review the process so that the public is not inconvenienced in any manner.