RBI to withdraw banknotes issued before 2005 to curb black money

The Reserve Bank of India will withdraw from circulation banknotes issued before 2005 in a move seen to curb black money. In a statement on Wednesday, it said that such notes will be withdrawn after March 31, 2014 and post that public will be required to approach banks for exchanging these notes.

The central bank said such notes are easy to identify as they do not have the year of printing marked on the reverse side.

It clarified that such notes will continue to be legal tender which means banks are required to exchange the notes for their customers as well as for non-customers. From July 1, 2014, however, to exchange more than 10 pieces of Rs 500 and Rs 1,000 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.

(Edited by Joby Puthuparampil Johnson)

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