 "2005 currency cut-off: Why you need to be careful while accepting notes")
The Reserve Bank of India (RBI) has decided to withdraw all currency notes printed before 2005. According to the central bank, pre 2005 notes have lesser security features and hence need to be withdrawn from the system. In fact, it’s a brilliant way to get rid of fake notesfrom the system.
What it means for you:Common people have to be careful going forward. Especially because you are forced to deal with a lot of cash, given the proportion of black component in our economy. It is likely that you have a lot of such cash under your mattress, particularly if you have had a real estate transaction of late. Getting loads of notes exchanged may turn out to be a headache.
[caption id=“attachment_74213” align=“alignleft” width=“380”]
RBI has not given a cut off date for banks to stop accepting such notes. Until that time, the old notes will continue to be legal tenders.[/caption]
To know, if the note is pre-2005 simply check for the year of printing on the reverse of the note. As of now, until 31 March 2014, your pre-2005 notes will be accepted. From 1 April, though they would still continue to be a legal tender, you would have to exchange them at the bank. This means, after 1 April, you should not accept pre-2005 note, or you will have to go to the bank yourself to exchange the notes.
Whether you are an account holder or not, the bank have to give you an exchanged note. According to the RBI statement, “From July 01, 2014, however, to exchange more than 10 pieces of Rs 500 and Rs 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.”
In fact, you can exchange the notes in phases and across branches. Thankfully, the RBI has not given a cut off date for banks to stop accepting such notes. Until that time, the old notes will continue to be legal tenders.
TheRBI has clarified that after the 1 July you can exchange pre-2005 currency notes of all denominations at the bank where you have an accounts.
Things to keep in mind: If you have pre-2005 notes, go to the bank and exchange the notes as soon as possible. We suggest you carry your ID and address proof, and PAN card, irrespective of the number of notes you plan to exchange. Chances are you might not be asked for such proof, but better safe than sorry. In fact, we would say you might as well be careful whileacceptingacurrencynote from this moment. We suggest stop accepting pre-2005 notes as soon as possible.