Author Topic: India: Banknotes Issued Before 2005 to be Withdrawn  (Read 4328 times)

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Offline Bimat

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India: Banknotes Issued Before 2005 to be Withdrawn
« on: January 22, 2014, 03:34:02 PM »
Currency notes issued before 2005 to be withdrawn

Updated: January 22, 2014 19:30 IST

The notes issued before 2005 do not have the year of printing on the reverse side.

The Reserve Bank of India, on Wednesday, warned that it would withdraw from circulation all banknotes that had been issued before 2005.

According to a central bank advisory, anybody who had such currency notes would have to approach a bank in order to exchange them before April 1, 2014. The RBI would start withdrawing the notes after March 31, 2014.

“The public can easily identify the notes in question as the notes issued before 2005 do not have the year of printing on the reverse side. The notes issued before 2005 will continue to be legal tender… banks will be required to exchange the notes,” the RBI said.

PTI adds:

Asking people not to panic and cooperate in the withdrawal process, the Reserve Bank of India (RBI) said old notes will continue to be legal and can be exchanged in any bank after April 1.

“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 RBI said.

From July 1, 2014, persons seeking exchange of more than 10 pieces of Rs 500 and Rs 1,000 notes will have to furnish proof of identity and residence to the bank.

Although the RBI did not give any reason for withdrawal of pre-2005 currency notes, the move is expected to unearth black money held in cash.

As the new currency notes have added security features, they would help in curbing the menace of fake currency.

At present, currency notes in denominations of Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 and Rs 1,000 are issued.

Source: The Hindu
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Offline aarkay

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #1 on: January 23, 2014, 09:22:06 AM »
Hi....

The Reserve Bank has decided to withdraw all currency notes issued prior to 2005, including Rs 500 and Rs 1,000 denominations, to curb black money and fake currencies.

Notes issued before 2005 does not carry year of printing while the valid notes will have the year printed on the reverse side.

"After March 31, 2014, it (RBI) will completely withdraw from circulation all bank notes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes," the RBI said in a statement.

The public can easily distinguish the currency notes issued before 2005 as they do not have the year of printing on reverse side.

The year of printing in a small font is visible at the middle of the bottom row in notes issued after 2005 (see the image above).

Asking people not to panic and cooperate in the withdrawal process, the Reserve Bank of India (RBI) said old notes will continue to be legal and can be exchanged in any bank after April 1.

"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 RBI said.

From July 1, 2014, persons seeking exchange of more than 10 pieces of Rs 500 and Rs 1,000 notes will have to furnish proof of identity and residence to the bank.

Although the RBI did not give any reason for withdrawal of pre-2005 currency notes, the move is expected to unearth black money held in cash.

As the new currency notes have added security features, they would help in curbing the menace of fake currency.

At present, currency notes in denominations of Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 and Rs 1,000 are issued.



Related News: Reserve Bank of India

Aarkay
Why worry about dead yesterdays and unborn tomorrows….live in the present…a present for you today…

Offline dheer

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #2 on: January 23, 2014, 04:42:35 PM »
Now begins the dealer stories of all these notes becoming extremely rare  ;D
Looks like a godsend news to dealers who were facing slowdown ...
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Offline nomadbird

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #3 on: January 23, 2014, 09:24:16 PM »
The Reserve Bank has decided to withdraw all currency notes issued prior to 2005, including Rs 500 and Rs 1,000 denominations, to curb black money and fake currencies.

Curb Black money ?    I thought they already converted them into Dollar and Euro and safely sitting in some Swiss bank!
Thx
Nomadbird

Offline Coinsforever

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #4 on: January 24, 2014, 12:49:43 AM »
The decision came just prior to loksabha elections.
Govt is well aware of timing and have given ample time to all those who have considerable black money to get rid of it.

For hobby point of view small dealers will sell gradually due to panic big one will buy from them.

IMO Real buyers and collectors will hardly get any bargain or benefits out of it.

Cheers ;D
Every experience, good or bad, is a priceless collector's item.



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Offline Vivek

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #5 on: January 24, 2014, 11:36:57 AM »
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)

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

Press Release : 2013-2014/1472
 
 
http://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30458
Vivek

Offline Bimat

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India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #6 on: January 24, 2014, 04:39:09 PM »
Baba Ramdev is back. ;D

Not just pre-2005 ones, Ramdev wants blanket withdrawal of all banknotes

20:40 HRS IST

New Delhi, Jan 24 (PTI) Yoga guru Ramdev today urged the government to withdraw all higher denomination currency notes issued till date and not just the ones printed before 2005, saying that such a move would help curb black money and corruption.

The decision to withdraw by March 31 all currency notes issued prior to 2005 was taken in "haste" and would only partially help check the flow of "fake currency", Ramdev said.

Source: PTI
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Offline Mits

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #7 on: February 03, 2014, 10:21:50 AM »
Panic effect of this news... some old bundles coming out.

Bought these over the weekend.
~High on Life~

Offline Vivek

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #8 on: February 03, 2014, 12:13:03 PM »
 :D :D Nice Bundles !
Vivek

Offline Mits

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #9 on: February 03, 2014, 01:48:57 PM »
A quick question to members. this 2008 Subbarao note is the first 50 Rs I have got in hand as a bundle. In circulation I have always received 2008 Subbarao 10 Rs note.

I had also posted in the sticky post that 2008 50 Rs - Subbarao is missing.

Is this scarce can someone help what is the mintage?

Are there 2008 Subbarao 20, 100 and 500 notes also?

Regards
Mitesh Shah
~High on Life~

Offline dheer

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #10 on: February 03, 2014, 03:38:23 PM »
A quick question to members. this 2008 Subbarao note is the first 50 Rs I have got in hand as a bundle. In circulation I have always received 2008 Subbarao 10 Rs note.

I had also posted in the sticky post that 2008 50 Rs - Subbarao is missing.

Is this scarce can someone help what is the mintage?

Are there 2008 Subbarao 20, 100 and 500 notes also?

Regards
Mitesh Shah

The Rs 50 2008, is relatively scarce.
The other 2008 issues are;
Rs 1000, Rs 100, Rs 10.
Of course it doesn't mean that Rs 500, Rs 20 are not there ...
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Offline Bimat

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India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #11 on: February 07, 2014, 03:30:44 PM »
Pre-2005 currency notes on sale at 10 per cent commission, right outside RBI office

Virendrasingh Ghunawat   |   Headlines Today  |   Mumbai, February 7, 2014 | UPDATED 17:03 IST

A sting operation by the India Today Online exposes how a gang of black marketeers is openly selling the currency notes right outside RBI building. The gang also offers to purchase pre-2005 currency at some exchange rate.

A gang of 10-15 members, especially led by women are operating right in the lane which goes towards Syndicate Bank - opposite RBI's old head office. The gang members makes a entry at 10.30 am (the time when RBI also opens its cash exchange counter) and exit by 4 pm - booking a good turnover of Rs.10-20 lakhs per day.

Shockingly, the CCTV cameras placed outside the RBI building do not capture a single movement of this lane. Even the security guards of RBI - who do not waste a single moment to forcefully stop the photographer and media cameraman to do any video shoot within the range of 100 metres of RBI building (no idea, for what reason), hardly bother what is happening in that lane - which is just 50 metres away.

The current rate list in this open illegal currency exchange market (on street) goes like this:

--Commission of 5 - 10 per cent to exchange pre-2005 banknotes with new ones (printed after 2005)

-- Commission of 3-5 per cent to exchange old banknotes with new fresh bundles (RIM) of Rs.10, Rs.20 or Rs.50

-- Commission of 15 per cent to exchange old banknotes with the sealed pack of coins (Rs.5 or Rs.10)

-- Commission of minimum 7-8 per cent to exchange pre-2005 banknotes with fresh bundles of Rs.10, Rs.20 and Rs.50.

So, if you want to exchange pre-2005 banknotes worth Rs.1 lakh in this lane, skipping your own bank for any reason, than get ready to pay a commission of Rs.5,000-10,000 on it.

Fact remains, getting coins are quite costly than currency notes - whopping, a commission of 15 per cent. No wonder, coins are required at every nooks and corners of this maximum city, starting from BEST Bus, paanwala shop, autowalas, ticket counters, retail shops, restaurants, and so on.

These blackmarketeers are dealing with all size of black money - stashed at client's office or residence (those holding pre-2005 notes). Special service is being provided to such customers within an hour.

First, they would meet the client, get the list of old money stashed (like, how much bundles of Rs.10, Rs.50, Rs.100, Rs.500 or Rs.1000), check the quality of banknotes, and within an hour they would deliver the new banknotes (printed post-2005) by giving a good discount on the commission rates.

These blackmarketeers are likely to increase the commission rate to 10 per cent on the exchange of pre-2005 notes by April 2014 - which is also the deadline of RBI. In its advisory, RBI had said, "From April 1, 2014, the public will be required to approach banks for exchanging these notes."

Few important issues here: one, there is no doubt that these black marketeers are getting complete support from RBI employees working within the head office, in running this illegal business on the street.

Pappu, one of the senior members of this gang, who got exclusively captured on spy camera, admits that, they get all these new currency notes from the bank and not from any merchants (who also do similar commission based business). "We have a complete setting inside...nothing could stop us. In fact, I am a license holder. I could carry currency notes to any place in the city and state," said Pappu (may be not his real name).

Local individuals like, security guards, paanwallas, car parking walla, drivers and bank employees (at lower level) who comes out for regular tea n snacks before, in middle or after the duty hours in that lane - are the supporting pillars of this gang. Beside RBI, atleast a dozen different public and private banks have its offices/branches/ATMs around.

Interestingly, these gang members hide their bundles of new banknotes (also said RIM) in two-wheelers parked in that lane. We captured a couple - who were hiding at least 10-15 bundles of banknotes in their bike seat.

Second, important issue here - which RBI needs to investigate is, that the new currency notes (RIM) are coming straight from RBI counters. While conducting this sting operation, our team got in hand a fresh new bundle of Rs.10, which was printed in BRBNMPL, Mysore. BRBNMPL was established by RBI as its wholly owned subsidiary with a view to augmenting the production of bank notes in India to enable the RBI to bridge the gap between the supply and demand for bank notes in the country.

RBI needs to check - whether those individuals who enters RBI (at 10.30 am) to collect Rs.10, Rs.20 or coins of Rs.5 (which has a limit of Rs.3,500 per person till next 15 days) from RBI ticket counters - are the part of this network. In fact, a senior citizen (in 80s) was captured on camera handing over the fresh RIMs to the gang members, in that lane.

Local traders in south Mumbai are the most affected. Ashok Patel, president, The Fort Merchant Welfare Association said, "number of times, we had complained to RBI about the black marketing of currency happening on the street. It's a business in crores. Traders are suffering - on bank counters we do not get much coins and bank notes (like Rs.10 or Rs.20), but to serve our retail customers, we have to get these currencies from these blackmarketeers paying huge commission - which is unwanted." Patel has complained about it to the Central Bureau of Investigation (CBI) to investigate it.

A detailed set of queries had been sent to RBI - seeking RBI's perspective. The spokesperson of RBI replied, "Thanks, we need some time to respond."
 

But off the record, RBI officials speaking to India Today Online have made it clear that there is no act or rule in Indian banking sector to regulate or control selling of currency notes in outside world. "Our security guards and CCTV cameras at the RBI building is to secure our own property and not to keep a vigil on public lane or any shady activities taking place on any street."

"In fact, we would appeal the Mumbaikars and people in other cities not to approach such blackmarketeers or merchants to exchange their old banknotes on commission basis. RBI has created a system in banking sector to exchange old notes and get the new ones (including coins) from RBI or any other chest banks," said the RBI official.

So, whether this open money market right outside RBI building is legal or illegal - is itself a question mark, in short - could not be stopped legally, as of now. But yes, it has opened another door for all those Indians who want to exchange their stashed pre-2005 banknotes (may be black money) at their residences and offices.

Source: India Today

(Click on the link to see the pictures)
« Last Edit: February 07, 2014, 06:16:38 PM by Bimat »
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Offline Bimat

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India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #12 on: February 23, 2014, 01:17:36 PM »
HC sends RBI notice on plea against recall of banknotes

Press Trust of India | Chennai | February 23, 2014 1:40 am

S Srinivasa Narayanan, an advocate, in his petition contended that the RBI had not disclosed the reasons for issuing the January 28 notice.

The Madras High Court Saturday ordered issue of notice to RBI on a PIL seeking to declare as null and void its recent notification withdrawing all old series of currency notes issued prior to 2005. A Division Bench issued notice to the RBI Governor and General Manager returnable by two weeks.

S Srinivasa Narayanan, an advocate, in his petition contended that the RBI had not disclosed the reasons for issuing the January 28 notice.

Source: Indian Express
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Offline Vivek

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Re: India: Banknotes Issued Before 2005 to be Withdrawn
« Reply #13 on: March 04, 2014, 03:58:55 AM »
RBI extends the date for exchanging Pre-2005 banknotes to January 01, 2015

http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30721
Vivek