Current · Source: Reserve Bank of India · RBI/2013-2014/467 · issued 23 Jan 2014 · ~2 min read
Quick answerRBI withdraws all banknotes issued before 2005 from circulation. They remain legal tender but must be exchanged at bank branches after March 31, 2014. Banks must stop re-issuing these notes and provide exchange facilities.
The rule, in the simplest words
All banknotes (paper money) made before 2005 must be exchanged at a bank branch after March 31, 2014.
Banks must stop giving out these old notes to customers and instead collect them to send to the RBI (Reserve Bank of India).
From July 1, 2014, if someone who is not a customer wants to exchange more than 10 notes of Rs 500 or Rs 1000, they must show proof of who they are and where they live.
How it plays out — a real example
A currency-chest / cash officer in Indore, Priya, receives a customer who wants to exchange 15 old Rs 500 notes from before 2005. Since the customer is not a bank customer, Priya asks for their Aadhaar card and a utility bill to record their identity and address before processing the exchange, following the RBI rule that started on July 1, 2014.
What changed
RBI decided to completely withdraw all old series banknotes issued prior to 2005 from circulation. These notes will be acceptable for transactions only until March 31, 2014, after which they must be exchanged at bank branches. From July 1, 2014, exchanging more than 10 pieces of Rs 500 and Rs 1000 notes from non-customers requires proof of identity and residence.
What it means for you
Banks must prepare for a surge in exchange requests from the public, especially after March 31, 2014. They need to sort and deposit these notes into currency chests or forward them to RBI Issue Offices. This withdrawal aims to phase out older series systematically without disrupting cash flow.
What you must do
Issue instructions to all branches to stop re-issuing pre-2005 banknotes and provide exchange facilities to the public.
Ensure branches sort and deposit pre-2005 notes into currency chests under the Linkage Scheme or forward to nearest RBI Issue Office.
From July 1, 2014, require non-customers exchanging over 10 pieces of Rs 500 or Rs 1000 notes to provide proof of identity and residence.
Advise branches to cooperate with the public for a smooth and non-disruptive withdrawal process.
Who it affects
All Scheduled Commercial Banks, Primary (Urban) Co-operative Banks, Regional Rural Banks (RRBs), Bank customers and general public
❓ Common questions
Are pre-2005 banknotes still legal tender after March 31, 2014?
Yes, they remain legal tender even after March 31, 2014, but must be exchanged at bank branches instead of being used directly for transactions.
What documentation is needed for exchanging pre-2005 notes from July 1, 2014?
For non-customers exchanging more than 10 pieces of Rs 500 or Rs 1000 notes, banks must obtain proof of identity and residence.
What should banks do with pre-2005 notes received over the counter?
Banks should sort these notes immediately and deposit them in currency chests under the Linkage Scheme or forward them to the nearest RBI Issue Office for disposal.
📜 Read the original circular — full text as issued by RBI
RBI/2013-2014/467
DCM(Plg) No.G-17/3231/10.27.00/2013-14
January 23, 2014
The Chairman / Managing Director/ Chief Executive Officer
All Scheduled Commercial Banks
Primary(Urban) Co-operative Banks/RRBs
Dear Sir /Madam
Withdrawal of all old series of Banknotes issued prior to 2005
As you are aware, RBI has been following a policy of phasing out of certain series of banknotes from time to time. It has now been decided that all old series of banknotes issued prior to 2005 will be completely withdrawn from circulation.
2. Accordingly, the following plan of action has been formulated:
(i) All older series of banknotes issued prior to 2005 would be acceptable for all kinds of monetary transactions only till March 31, 2014.
(ii) Thereafter, the public will be required to approach bank branches which would provide them exchange facilities on an ongoing basis.
(iii) These notes will continue to be legal tender.
(iv) From July 01, 2014, to exchange more than 10 pieces of ` 500 and ` 1000 notes, bank branches should obtain from non-customers, proof of their identity and residence.
(v) A public notification informing public of the exercise and soliciting their co-operation and enabling them to identify the older series is issued separately. A copy of the same is enclosed for ready reference.
3. Please issue suitable instructions to all your branches, to provide exchange facilities to members of public and to stop re-issue of the older series banknotes issued prior to 2005. Notes of such series tendered over the counters may be sorted immediately and deposited in the currency chests under the Linkage Scheme or forwarded to the nearest Issue Office of Reserve Bank of India for disposal.
4. Please also advise your branches to extend all cooperation to the members of public so that the withdrawal is carried out in a smooth and non-disruptive manner, without any inconvenience to the public.
Please acknowledge receipt.
Yours faithfully
(Dr. Sanjeev Sharma)
General Manager in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-2014/467 · issued 23 Jan 2014. The plain-English explanation above is BankPulse’s own independent summary.
Issue instructions to all branches to stop re-issuing pre-2005 banknotes and provide exchange facilities to the public.
Ensure branches sort and deposit pre-2005 notes into currency chests under the Linkage Scheme or forward to nearest RBI Issue Office.
Advise branches to cooperate with the public for a smooth and non-disruptive withdrawal process.
📜 Compliance
From July 1, 2014, require non-customers exchanging over 10 pieces of Rs 500 or Rs 1000 notes to provide proof of identity and residence.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (All Scheduled Commercial Banks, Primary (Urban) Co-operative Banks, Regional Rural Banks (RRBs), Bank customers and general public), your first concrete step on “Withdrawal of Pre-2005 Banknotes: RBI Circular” is: “Issue instructions to all branches to stop re-issuing pre-2005 banknotes and provide exchange facilities to the public.” (RBI issued this 23 Jan 2014).
Circular: RBI/2013-2014/467 -- Withdrawal of Pre-2005 Banknotes: RBI Circular
Issued: 23 Jan 2014
Action required: Issue instructions to all branches to stop re-issuing pre-2005 banknotes and provide exchange facilities to the public.
Action required: Ensure branches sort and deposit pre-2005 notes into currency chests under the Linkage Scheme or forward to nearest RBI Issue Office.
Action required: From July 1, 2014, require non-customers exchanging over 10 pieces of Rs 500 or Rs 1000 notes to provide proof of identity and residence.
Action required: Advise branches to cooperate with the public for a smooth and non-disruptive withdrawal process.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8715&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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