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Security, main reason for currency withdrawal: RBI

The Reserve Bank of India (RBI) has yet again reiterated that the currency notes printed prior to 2005
will continue to be legal tender.
Responding to fresh queries over its decision to withdraw from circulation all notes printed prior to 2005, the RBI clarified that the objective of the move “is to remove these bank notes from the market because they have fewer security features compared to banknotes printed after 2005.’’
Global practice
It went on to say that “it is standard international practice to withdraw old series notes.’’ “The RBI has already been withdrawing these bank notes from the market in a routine manner through banks,’’ it said. The volume of the bank notes printed prior to 2005 still in circulation ‘is not significant enough’ to impact the general public in a large way, it said.
While advising the public to initiate the process of exchanging such notes at bank branches at their convenience, the RBI said even after July 1, the public could exchange any number of these old series notes from the bank branches where they had their accounts. The apex bank asserted that it would continue to monitor and review the process of withdrawal of old series notes so as to ensure that the public was not inconvenienced in any manner.

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