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Offline Bimat

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Pakistan: Banknotes to be Demonetised
« on: July 09, 2011, 08:07:24 AM »
Demonetisation of Rs 500 old design and Rs 5 bank notes
Staff Reporter


Karachi—The Rs 500 bigger size and old design banknote and Rs five banknote will stand demonetised with effect from October 1, 2011 and January 1, 2012. An announcement to this effect was made by the State Bank of Pakistan (SBP) here on Friday.

The SBP has, therefore, advised the general public to exchange Rs 500 bigger size old design banknote latest by September 30, 2011 and Rs 5 banknote by December 31, 2011 from the field offices of SBP Banking Services Corporation (BSC) and branches of commercial banks operating throughout the country.

The State Bank, for the benefit of public, has supplied posters in both English and Urdu languages regarding demonetisation and exchange of banknotes of Rs 500 (old design) and Rs 5 to SBP Banking Services Corporation and commercial banks for placement at prominent visible places of their field offices and branches as well as at public places. These posters and State Bank’s advice is available at the following links of SBP website: http://www.shp.org.pk/acc/2010/C1.htm; http://www.sbp.org.pk/BankNotes/index.asp

It may be recalled that the Federal Government has already notified that old design banknote of Rs 500 denomination (introduced on April 1, 1986) will cease to be the legal tender with effect from October 1, 2011 while banknote of Rs 5 denomination (introduced on July 8, 2008) will cease to be the legal tender from January 1, 2012.

Source: Pakistan Observer
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Pakistan: Banknotes to be Demonetised
« Reply #1 on: September 12, 2011, 08:05:57 AM »
People asked to exchange old-design Rs.500 banknote by September 30

'Pakistan Times' Business & Commerce Desk

ISLAMABAD: The State Bank of Pakistan has once again advised the general public to exchange the old-design and bigger-size banknote of Rs 500/- from the field offices of SBP Banking Services Corporation and the branches of all commercial banks throughout the country up to September 30, 2011.

It may be recalled that the Federal Government has earlier notified  that the old-design banknote of Rs 500/- (introduced in April 1986) will cease to be the legal tender and not exchangeable with effect from October 1, 2011, says a Bank statement issued here at the weekend.

Source: Pakistan Times
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Pakistan: Banknotes to be Demonetised
« Reply #2 on: September 29, 2011, 05:20:11 PM »
Sept 30 last date for exchanging Rs 500 banknote:SBP

KARACHI - September 30, 2011 is the last date for exchanging Rs 500 old design (bigger size) banknote. The State Bank of Pakistan (SBP) has once again reminded the general public to exchange this banknote from the field offices of SBP Banking Services Corporation and branches of all banks including microfinance banks (MFBs)operating in the country.

It may be pointed out that the State Bank of Pakistan/SBP Banking Services Corporation will neither exchange nor be liable to pay any value of such banknote to any person or a bank after the above mentioned deadline as from October 01, 2011 the old design (bigger size) Rs 500 banknote will cease to be a legal tender.

The SBP has already asked all banks including MFBs to facilitate the general public in exchanging Rs 500 old design (bigger size) banknote within the stipulated deadline of September 30, 2011.

Source: Pakistan Today
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Pakistan: Banknotes to be Demonetised
« Reply #3 on: September 30, 2011, 03:03:58 AM »
Citizens confused over cancellation of old Rs 500 note

NAUMAN TASLEEM

LAHORE - The old Rs 500 banknote would be cancelled from October 1 and September 30 (today) is the last date for exchanging these notes from the banks. The cancellation of old currency banknotes has created a lot of confusion in the general public and they are reluctant in even accepting other denominations of old currency banknotes. The old currency notes of Rs500 were introduced in mid 1980s and at that time due to appreciation of Pak rupee, it was considered a big denomination.

However, in the start of 2002, the SBP introduced small currency notes to replace the old ones. An official of SBP said in the future, old denominations of Rs 10, 50, 100 and 1,000 would also be cancelled. The SBP has announced to cancel old currency banknotes of Rs 500 and has instructed people to return these notes to banks and get new notes. The general public has already stopped getting these notes from one another. It is also pertinent to mention that many shopkeepers have stopped accepting old notes of Rs 500 from the month of August despite the fact these notes were to be cancelled in October.

The confusion also prevails in majority of people and they have also stopped accepting old notes of Rs 100 and 1,000. The shopkeepers and business community said that it has created a lot of problems for them, as they have to convince their customers that there is nothing wrong with the old banknotes of Rs 100 and Rs 1,000. “Often, I have to tell the customers that only Rs 500 old currency notes are cancelled and there is nothing wrong with other denominations,” said a gold jeweler Muhammad Irfan adding, however, many customers do not understand and insist on being given fresh notes.

“Even educated people ask us for not giving old currency banknotes of Rs 100 or Rs 1, 000,” he added. Another businessman Aslam Khan said that mostly women don’t accept old notes. “We are in a trouble because of change in currency notes,” he added. The private businessmen, petrol pumps and shopkeepers have already stopped accepting these banknotes. The SBP spokesman said the SBP would not be liable to pay any value for the old note after the deadline.

Source: Pakistan Today
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

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Pakistan: Banknotes to be Demonetised
« Reply #4 on: October 13, 2011, 04:03:44 PM »
Rs500 note: demonetisation an illegal step

THIS refers to the news item ‘Rs500 banknote deadline not extended’ (Business pages, Sept 30). By demonetising Rs500 note that was issued in April 1986 both the government and the State Bank of Pakistan have taken an illegal step. The note has ceased to be legal tender from Oct 1.

The State Bank has not ensured that every person having this note in the country, as well as outside, was aware of the withdrawal of Rs500 note. Issuing a news release of a few lines for the media is not enough at all. A single column brief news story in newspapers or a sentence or two in radio and television news bulletins by no means reaches the entire population.

There has not been a single advertisement in this regard. The message does not reach everybody even in cities, not to speak of remote villages.

A woman in Hyderabad is reported to have lost all her money she had saved in demonetised notes for her daughter’s dowry.

She was just one of tens of thousands of other victims of this illogical step.

The State Bank may withdraw from circulation any currency note but it cannot fix any final date for it. All that it can do is to ask banks not to reissue any note that it wants to withdraw. In the meantime, banks must continue to accept the withdrawn notes for exchange with new ones whenever presented to them.

Look closely at any currency note of Rs5 or more. It bears a solemn commitment of the State Bank governor that he will pay to the bearer ‘on demand’ the face value of the note in rupees. It also says that the note was issued with the guarantee of the government. The printed commitment does not say that it is valid up to a certain date or that the governor may back out under certain conditions and refuse to pay the face value. It is a commitment for all times and without any conditions whatsoever.

The consequence of the demonetisation will be that the State Bank will be depriving the citizens of billions of rupees. No law gives this right to the State Bank. It may well be called a daylight robbery. Why should citizens lose their money simply because the State Bank has issued a notification for withdrawal of a note?

After Oct 1, any person still holding an old Rs500 note will have a perfect legal right to sue the State Bank. Some lawyers may also file a class action suit, compelling the State Bank not only to pay the face value of the outstanding Rs500 currency notes but also damages for causing unnecessary harassment and worry.

Before it comes to that, the State Bank must ask all branches of all banks to continue to exchange the withdrawn notes with current notes and then forward these notes to it for cancellation.

In England, anybody can take any old currency note to the Bank of England even after decades and it is exchanged with a new note, no questions asked. After all, a guarantee of the government is for all times, without any time limit.

MUHAMMAD ABD AL-HAMEED
Lahore

Source: DAWN
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

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Pakistan: Banknotes to be Demonetised
« Reply #5 on: October 22, 2011, 09:07:13 AM »
Dumping of Rs 500 note challenged in LHC

LAHORE - A petition has been filed in the Lahore High Court (LHC) against the central bank’s cancellation of old-design Rs 500 currency notes, seeking to call the decision unlawful. The petitioner, Shamil Paracha, submitted that the State Bank of Pakistan (SBP) had cancelled the old notes without the permission of the federal government. Paracha said that the government was bearing a hefty annual cost on the printing of currency notes, and that the cost would further increase by printing new Rs 500 bills to replace the cancelled ones.

The petitioner further said the cancellation was causing problems to the people who could not deposit their notes to the bank in time and were now angry over the bank’s decision. He contended that the SBP was bound to get permission from the government according to the State Bank Act, 1956. He requested the court to declare the SBP’s notification of cancelling Rs 500 note illegal, or to extend the time limit to exchange old notes with new ones in order to save people from the loss of money.

Source: Pakistan Today
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

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Pakistan: Banknotes to be Demonetised
« Reply #6 on: October 29, 2011, 07:28:14 PM »
Pakistan plans to cancel Rs.5 note

Published by: Abhi Kapoor
Published on: Sat, 29 Oct 2011 at 21:49 IST

Islamabad: State Bank of Pakistan (SBP) has said that the Rs.5 currency note denomination shall cease to be legal tender will be effect from 1st Jan, 2012.

The currency note of the lowest denomination will not be accepted in the country, as per the statement.

The bank has urged holders of such notes to have them changed no later than Dec 31 to save themselves from any inconvenience.

Source
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

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Pakistan: Banknotes to be Demonetised
« Reply #7 on: October 31, 2011, 05:13:50 PM »
PM extends old design note of Rs.500 for next year

Prime Minister (PM) Syed Yousaf Raza Gilani has approved the date of exchange of old design note of Rs.500 for further one year.

On the request of the public and parliamentarians, Prime Minister Syed Yusuf Raza Gilani on the recommendations of Ministry of Finance has approved extension in the date of exchange of Rs.500 (old design) bank note by commercial banks for further period of one year up to 30th September 2012.

Source: Nation
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.