The Reserve Bank of India has, on a review, decided to extend the date for the public to exchange their pre-2005 banknotes till June 30, 2016. However, from January 01, 2016, such facility will only be available at identified bank branches and Issue Offices of the Reserve Bank.
The Reserve Bank had, in June 2015, set the last date for public to exchange pre-2005 banknotes notes as December 31, 2015.
The Reserve Bank has also clarified that all such notes continue to remain legal tender. Explaining the move, the RBI said that the banknotes in Mahatma Gandhi series have now been in circulation for a decade.
A majority of the old banknotes have been withdrawn through bank branches. It has, therefore, been decided to withdraw the remaining old design notes from circulation.
The Reserve Bank pointed out that it is standard international practice not to have currency notes from multiple series in simultaneous circulation. The Reserve Bank will continue to monitor and review the process so that the public is not inconvenienced in any manner.