GST Certification Course

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

RBI/2013-14/509 DCM(Plg) No.G- 19/3880/10.27.00/2013-14 March 03, 2014 The Chairman / Managing Director/ Chief Executive Officer All Scheduled Commercial Banks Primary(Urban) Co-operative Banks/RRBs


 Notice Date : 03 March 2014

RBI/2013-14/509
DCM(Plg) No.G- 19/3880/10.27.00/2013-14

March 03, 2014

The Chairman / Managing Director/ Chief Executive Officer
All Scheduled Commercial Banks
Primary(Urban) Co-operative Banks/RRBs

Dear Sir /Madam

Withdrawal of all old series of Banknotes issued prior to 2005

Please refer to our circular DCM (Plg) No. G-17/3231/10.27.00/2013-14 dated January 23, 2014 on the captioned subject which was followed by a Press Release on January 24, 2014 (copy enclosed).(Please check below)

2. On a review of the matter, it has been decided to extend the date for exchanging the pre-2005 banknotes to January 01, 2015. These instructions have been included in a Press Release dated March 03, 2014 (copy enclosed). (Please check below)

3. You are advised to facilitate the exchange of such notes for full value without causing any inconvenience to the public, whatsoever. These notes will retain their legal tender status and the public can continue to use these for any transaction/ payment.

4. As advised, please issue suitable instructions to all your branches to provide exchange facilities to members of public and to stop re-issue of the pre- 2005 series banknotes. Please also ensure that such notes are not dispensed through the ATMs/ over your counters. The methodology to be followed for dealing with the Pre-2005 series banknotes contained in Para 3 of the circular dated January 23, 2014 referred to above remains unchanged.

5. A list of dos and don’ts, is being enclosed for your guidance. (Please check below)

6. Please acknowledge receipt.

Yours faithfully

(B.P Vijayendra)
Principal Chief General Manager

Encl: 3 sheets

DOs

  1. Banks should sensitize the members of public that the pre-2005 notes would continue to be legal tender. Banks should endeavour to organize note exchange melas in semi-urban/rural areas.
  2. All denominations of banknotes issued prior to 2005 series have to be exchanged.
  3. These notes must be freely accepted and exchanged by all bank branches from all members of public, whether customers or non-customers.
  4. The process of exchange at bank branches should be started forthwith and undertaken as per the convenience of members of public.
  5. The exchange of notes should be done free of cost.
  6. The value of such notes may be credited in customers’ account, if desired.
  7. The value of such notes payable shall be in terms of the RBI, Note Refund Rules, 2009.

DON’T

  1. Banks should not place any restriction on the number of banknotes to be exchanged by a member of the public.
  2. Banks should not issue pre-2005 series notes over the counter or through ATMs.
  3. Currency chest branches should not refuse pre -2005 banknotes from their linked branches.

__________________________

Withdrawal of all old series of Banknotes issued prior to 2005

RBI/2013-2014/467
DCM(Plg) No.G-17/3231/10.27.00/2013-14

January 23, 2014

The Chairman / Managing Director/ Chief Executive Officer
All Scheduled Commercial Banks
Primary(Urban) Co-operative Banks/RRBs

Dear Sir /Madam

Withdrawal of all old series of Banknotes issued prior to 2005

As you are aware, RBI has been following a policy of phasing out of certain series of banknotes from time to time. It has now been decided that all old series of banknotes issued prior to 2005 will be completely withdrawn from circulation.

2. Accordingly, the following plan of action has been formulated:

(i) All older series of banknotes issued prior to 2005 would be acceptable for all kinds of monetary transactions only till March 31, 2014.

(ii) Thereafter, the public will be required to approach bank branches which would provide them exchange facilities on an ongoing basis.

(iii) These notes will continue to be legal tender.

(iv) From July 01, 2014, to exchange more than 10 pieces of ` 500 and ` 1000 notes, bank branches should obtain from non-customers, proof of their identity and residence.

(v) A public notification informing public of the exercise and soliciting their co-operation and enabling them to identify the older series is issued separately. A copy of the same is enclosed for ready reference.

3. Please issue suitable instructions to all your branches, to provide exchange facilities to members of public and to stop re-issue of the older series banknotes issued prior to 2005. Notes of such series tendered over the counters may be sorted immediately and deposited in the currency chests under the Linkage Scheme or forwarded to the nearest Issue Office of Reserve Bank of India for disposal.

4. Please also advise your branches to extend all cooperation to the members of public so that the withdrawal is carried out in a smooth and non-disruptive manner, without any inconvenience to the public.

Please acknowledge receipt.

Yours faithfully

(Dr. Sanjeev Sharma)
General Manager in-Charge

____________________-

Banknotes issued prior to 2005 to be withdrawn – RBI Clarification

Further to our Press Release dated January 22, 2014 on the subject and in response to the queries raised, the Reserve Bank of India (RBI) clarifies that the rationale behind its move to withdraw banknotes printed prior to 2005 is to remove these banknotes from the market because they have fewer security features compared to banknotes printed after 2005. It is standard international practice to withdraw old series notes.

The RBI has already been withdrawing these bank notes from the market in a routine manner through banks. In Reserve Bank’s view, the volume of the banknotes printed prior to 2005 today, still in circulation, is not significant enough to impact the general public in a large way.

However, it advises that the members of public may initiate the process of exchanging notes at bank branches at their convenience. Further, even July 1, 2014 onwards, members of public can exchange any number of these old series notes from the bank branches where they have their accounts.

The RBI assures that it will continue to monitor and review the process of withdrawal of old series notes so that the public is not inconvenienced in any manner.

Regardless of the above, the RBI reiterates that the notes printed prior to 2005 will continue to be legal tender.

Alpana Killawala
Principal Chief General manager

__________________________________

RBI extends the date for exchanging Pre-2005 banknotes to January 01, 2015

Following its Press Release of January 24, 2014, the Reserve Bank of India has extended the date for exchanging the pre-2005 banknotes to January 01, 2015. It has also advised banks to facilitate the exchange of these notes for full value and without causing any inconvenience whatsoever to the public. The Reserve Bank solicits the cooperation of the public in withdrawing these notes from circulation by exchanging them at a bank branch convenient to them.

This withdrawal exercise is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time. A majority of such notes have already been withdrawn through the banks and only a limited number of notes remain with the public.

The Reserve Bank clarifies that the public can continue to freely use these notes for any transaction and can unhesitatingly receive these notes in payment, as all such notes continue to remain legal tender.

The Reserve Bank will continue to monitor and review the process so that the public is not inconvenienced in any manner.

Alpana Killawala
Principal Chief General Manager

Press Release : 2013-2014/1735

 

Guest
on 04 March 2014
Notification No : RBI/2013-14/509
Published in Others
Source : ,







Submit Notifications
caclubindia books caclubindia books Book