Reserve Bank of India has announced on 22nd January 2014, that 'Indian Currency Notes' printed and issued prior to the year 2005 would be withdrawn after 31st March 2014, in a move to curb ‘black money’ in the country.
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On the Indian Currency Notes printed after the year 2005 will have the year of printing on the reverse side of the currency notes.
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According to RBI, the currency notes issued after 2005 have added security features that make counterfeiting difficult.(Not Impossible?!)
The public may exchange the currency notes printed prior to 2005, by approaching any commercial bank in India.
It is notable that all the currency notes printed prior to the year 2005 are still valid and may be freely circulated.
People may deposit such currency notes into their accounts with banks, freely.
However, from 1st July 2014, for exchanging more than 10 pieces of 500 and 1000 rupee notes in a bank where they do not have an account will have to provide proof of residence and identity.
The RBI expects that its move to withdraw the currency notes printed prior to 2005 will make:
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The public may exchange the currency notes printed prior to 2005, by approaching any commercial bank in India.
It is notable that all the currency notes printed prior to the year 2005 are still valid and may be freely circulated.
People may deposit such currency notes into their accounts with banks, freely.
However, from 1st July 2014, for exchanging more than 10 pieces of 500 and 1000 rupee notes in a bank where they do not have an account will have to provide proof of residence and identity.
The RBI expects that its move to withdraw the currency notes printed prior to 2005 will make:
- the black money holders to spend the cash or exchange the same
- it difficult for printing fake currency notes
- it easy for the Income Tax authorities to watch the bulk exchanges of currency notes printed prior to 2005 and catch hold of black money holders (Great Expectations?!)
In the opinions of the public, the move of RBI will create a panic in the minds of the public and some bank staff and some shop-keepers might stop receiving currency notes printed prior to the year 2005, as it had been in the case of ‘scribbled/written’ currency notes.
As there is sufficient time of more than 6 months and more the holders of black money will efficiently do the needful to exchange the currency notes printed prior to 2005 with even brand new fresh currency bundles and keep in their lockers in banks and their houses.