For Quick Alerts
For Daily Alerts

Pre-2005 currency notes: What you should do with them?

Pre-2005 currency notes: What you should do with them?
With RBI's statement of withdrawal of pre-2005 currency notes in all denominations from beginning of the next fiscal year, general public has been seen in commotion. However, it is to be noted that such currency notes shall continue to be legal tender, with such a direction banks will be accountable for exchanging pre-2005 currency notes both for customers as well as non-customers.

Exchange pre-2005 currency notes at your convenience

For determining whether the currency note is issued prior to 2005 and individual possessing need to exchange them or note at bank branches, you need to ascertain the year of issuance. For determining, you need to check the reverse side of the note and if it does not bears the year of issuance, it means you need to segregate that and take it for the exchange.

Swapping of such currency can be more hassle free if done now as according to the RBI instructions for exchanging such currency after July1, 2014 (10 units of currency in denomination of Rs. 1000 or Rs.500), non-customers of banks will have to furnish a proof of Identification and proof of address.

If depositing pre-2005 currency notes with either the banks or post office in an amount over Rs. 50,000, you shall need to provide PAN as in the other cases. However if you do not have PAN, you can submit declaration in form 60.

Rationale for withdrawal of pre-2005 currency notes

As according to RBI, an important reason for the complete withdrawal of circulation of such pre-2005 currency notes is that they lack several security attributes that are otherwise found in currency notes issued after 2005.

Such an instruction is expected to reduce illicit activities in the system by curbing black money transactions to an extent. Also, as suggested by experts, timing of such an instruction that is well ahead of general elections, shall check any illicit sourcing of funds for the purpose.

Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more