RBI may extend deadline for exchanging currency notes printed before 2005

MUMBAI: The Reserve Bank of India (RBI) may extend the deadline for exchanging currency notes printed before 2005. The existing deadline is January 1, 2015. The central bank may come out with a formal directive on this within the next few days, according to RBI sources. RBI had in January this year announced it would withdraw from circulation notes printed prior to 2005. It has so far shredded 144.66 crore such notes valued at Rs 52,855 crore since the launch of the drive.

The central bank has incorporated additional security features in notes printed since 2005 to curb the menace of fake currency. One way to recognise pre-2005 notes is they do not have the year of printing on the reverse side. In new notes, the year of printing is visible at the bottom on the reverse.

The finance ministry recently said the withdrawal exercise was in conformity with the standard international practice of not having multiple series of notes in circulation at the same time. RBI has asked banks not to issue pre-2005 series notes over the counter or through ATMs.

In terms of denomination, RBI has shredded 73.2 crore notes of Rs 100 (Rs 7,320 crore), 51.85 crore pieces of Rs 500 (Rs 25,925 crore) and 19.61 crore notes ofRs 1,000 (Rs 19,610 crore) till October end. 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, according to RBI.