What changed
The deadline for exchanging pre-2005 series banknotes has been extended from an earlier date to January 1, 2015. This follows a review of the earlier circular dated January 23, 2014 and a press release on January 24, 2014.
What it means for you
Banks must continue to accept and exchange all pre-2005 notes for full value without any restrictions on quantity or customer status. These notes remain legal tender, so banks cannot refuse them or charge fees for exchange. Banks must also stop re-issuing these notes through counters or ATMs.
What you must do
- Extend exchange facilities for pre-2005 banknotes until January 1, 2015, without any restrictions on number of notes per person.
- Accept these notes from all members of public, including non-customers, and exchange them free of cost.
- Stop re-issuing pre-2005 notes over counters or through ATMs; ensure currency chest branches accept them from linked branches.
- Organize note exchange melas in semi-urban and rural areas to facilitate the public.
- Sensitize the public that pre-2005 notes remain legal tender and can be used for transactions.
Who it affects
All scheduled commercial banks, Primary (Urban) Co-operative Banks, Regional Rural Banks, Currency chest branches, Bank customers and non-customers
Are pre-2005 banknotes still legal tender?
Yes, they remain legal tender and can be used for transactions or payments until the new deadline of January 1, 2015.
Can banks charge a fee for exchanging pre-2005 notes?
No, the exchange must be done free of cost. Banks cannot impose any charges for exchanging these notes.
Is there a limit on how many pre-2005 notes a person can exchange?
No, banks should not place any restriction on the number of banknotes to be exchanged by any member of the public.