The Reserve Bank of India has notified that it will withdraw all the currency notes printed before 2005.
The RBI issued Mahatma Gandhi series (MG series) 2005 banknotes in the denomination of Rs 10, Rs 20, Rs 50,Rs 00,Rs 500 and Rs 1000.
All banknotes issued before the 2005 MG series are called as pre-2005 series banknotes.
Now, the deadline is extended to December 31, 2015 from June 31, 2015.
How to Identify Pre-2005 Notes?
The currency notes printed after 2005 have the year of printing on the reverse of the notes in the lower center portion.
While, notes printed before 2005 do not have the year of printing on the reverse side and hence can be easily identified.
Means that if your currency not does not have the year of printing on the reverse side, it means that currency should be exchanged at banks.
However, the notes issued before 2005 shall continue to be legal tender and they are only being withdrawn from circulation.
How to Exchange Old Currency?
As of now, banks have stopped to re-issue of the pre-2005 series notes over the counters or through ATMs and they are advised to forward them to the Reserve Bank of India.
All public and private sector banks will exchange the notes for free for customers or non customers. For the higher amount do carry your PAN card along with you if you are a non-customer.
Individuals can get the amount credited in his bank account or can carry cash instead of cash in exchange.
Why has RBI decided to withdraw pre-2005 series banknotes?
Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005.
The withdrawal exercise is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time.