The currency noted issues before 2005 will be withdrawn from circulation by RBI.
Reserve Bank of India announces in press release dated 22 Jan 2014 advised People could approach any banks for exchange of such noted from April 1.
No question or ID proofs would be asked by the banks till 30th of June 2014 when approached for such exchange. However starting from 1st July 2014 one has to give proof of identity and address if they have to exchange more than ten notes of pre 2005 of Rs 500 or Rs 1000 at bank.
RBI has not given any more information and been silent on many issues. Though the central bank has said that it’s a regular process to withdraw soiled and old notes from circulation and this is a routine exercise.
But the move is significant because of its timing, Ahead of the Lok Sabha elections around the same period. The conditions set have led to think it might be an effort to curb the black money and elimination of the counterfeit currency.
The old notes do not have many security features and with the newer one with more security features it would more easy to identify the fake currency.
Non customers who want to exchange more than 10 notes of Rs 500 or Rs 1000 at a bank after the due date; they have to furnish the proof of identity and address.
This move as well put a curb on people doing the business of exchange of soil and old notes at a discount and making profit, RBI’s insistence on producing proofs may also be aimed to discourage such practices.
RBI has said that the note issues before 2005 will be legal tender. But not mentioned how long?
Public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing.