Banknotes issued prior to 2005 to be withdrawn: RBI Advisory
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 The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side.
(Please see illustration below)
Illustration 
Figure 1: Banknote on which the year of printing is not indicated and will be
WITHDRAWN after March 31, 2014
Figure 2: Banknote on which the year of printing is indicated and will therefore not be withdrawn
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.
The Reserve Bank has appealed to the public not to panic. They are requested to actively co-operate in the withdrawal process.
Ajit Prasad
Assistant General Manager
who do not have the moral courage to control black money are making noise. This is like Aadhar card linkage to gas subsidy. (Every one knows how much confidence the Govt. could gain by this step. This is also such a step. Is this not right direction to demonstrate their capabilities by the bureaucrats to the voters.
This is absolutely illegal step taken by RBI. The currency note is a Promissory Note under Negotiable Instrument Act. RBI promises to provide the value of holder of Note to pay the bearer the sum of the value of Note. e.g. on Rs.20/- notes, it says “I PROMISE TO PAY THE BEARER THE SUM OF TWENTY RUPEES”. If any one is not willing to negotiate this note (i.e. Promissory Note) issued by RBI, they will be subject to legal action. Besides, RBI’s contention to bring KYC documents for exchanging notes is also illegal. RBI is bound to pay the bearer the value of note as promised on the face of such note.
In its over zeal to counter black money, RBI is following such procedure which will not only cause lot of inconvenience to general public but also will not stand to the scrutiny in the court of law also.
Let us pray that good sense will prevail on those people who are party to such decision and will take a relook at this decision.
All banks should immediately stop dispensing currency which is prior to 2005.
Other wise they will remain in circulation
I think the decision of the RBI only achieved the goal to stop the circulation of the duplicate notes. The unaccounted cash can’t controlled by this step, because, the person who has such type of notes in big numbers, also deposit his cash into bank in volume regularly. He has three months to replace the notes prior the 2005 with cut of period’s notes.
The common man will put in trouble to replace the note after 31st March. Now, situation will arise that common man may not accept big note and problem arise in day to day transaction with/to the small traders.