In Depth RBI to withdraw all bank notes issued prior to year 2005

 How to identify note which is issued before year 2005
In Depth RBI to withdraw all bank notes issued prior to year 2005

The Reserve Bank of India has today advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005.

From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication.

The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side.

The Reserve Bank has also clarified that the notes issued before 2005 will continue to be legal tender.

This would mean that banks are required to exchange the notes for their customers as well as for non-customers. From July 01, 2014, however, to exchange more than 10 pieces of `500 and `1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes.

Every currency note has a signature of incumbent governor during the time it was issued.
If one identifies governor’s signatures on the notes s/he bears, it may be helpful as well to identify whether the note needs to be exchanged or not.

 Thus, notes bearing signatures of governors incumbent after 2005 need not be exchanged.

Raghuram G Rajan: Incumbent since September 2013 -  No need to change  notes bearing signatures of Raghuram G Rajan

D Subbarao: Incumbent from September 2008 to September 2013 - No need to change  notes bearing signatures of D Subbarao

Y V Reddy: Incumbent from September 2003 to September 2008

Notes bearing year on the reverse of those bearing Governor Reddy’s signatures will be valid, while those without any year are clearly printed before 2005 and must be exchanged.

Its excellent move by RBI

From 1 April 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes

What will happen because of this move?

1-
All black money which is kept in bank lockers or hidden somewhere will come into market

2-
All religious places will start to get donations in cash more and more

3-
Black money will be sold in market in cheaply

Give the 100 note and get the note of 500 Rs issued before year 2005

Below is the illustration of bank note issued before year 2005

Reality views by sm –

Friday, January 24, 2014

Tags – RBI Ban Notes Year 2005