1. What are the pre-2005 series banknotes?
The RBI issued Mahatma Gandhi series (MG
series) 2005 banknotes in the denomination of Rs. 10, Rs.20, Rs. 50, Rs. 100, Rs. 500
and Rs. 1,000. These notes contain some additional / new security features as
compared to the 1996 MG series. All banknotes issued before the 2005 MG series are called
as pre-2005 series banknotes.
2. How can one distinguish the pre-2005
Apart from the additional security
features, the 2005 MG series banknotes have the year of printing on the reverse of the
notes in the lower middle portion. Banknotes printed before 2005 do not have the year of
printing on the reverse side and hence can be easily distinguished.
3. Why has RBI decided to withdraw pre-2005 series banknotes?
The Reserve Bank of India decided to
withdraw from circulation all banknotes issued prior to 2005 as they have fewer security
features as compared to banknotes printed after 2005. The withdrawal exercise is in
conformity with the standard international practice of not having multiple series of notes
in circulation at the same time. The RBI has already been withdrawing these banknotes in a
routine manner through banks. It is estimated that the volume of such banknotes (pre-2005)
in circulation is not significant enough to impact the general public in a large way and
the members of public may exchange the pre-2005 series banknotes at bank branches at their
4. Do the pre-2005 series banknotes cease to be legal tender?
The notes issued before 2005 shall
continue to be legal tender. The notes are only being withdrawn from circulation and this
withdrawal exercise is in conformity with the standard international practice of not
having multiple series of notes in circulation at the same time.
5. Can the pre-2005 series banknotes be
used for normal transactions?
Members of the public can continue to
freely use these notes for their transactions and can unhesitatingly receive these notes
in payment, as all such notes continue to remain legal tender.
6. Is there any time limit for exchanging
These notes can be freely exchanged at any
bank branch till January 1, 2015. The procedure to be followed after January 1, 2015,
shall be communicated by RBI in due course.
7. How is RBI ensuring that these notes are
withdrawn from circulation?
Banks have been advised to stop re-issue of
the pre-2005 series notes over the counters/through ATMs and they have been instructed to
forward them to the Reserve Bank of India.
8. Is there any restriction on the number
of pieces that can be exchanged?
No. There is no such restriction. Banks
have been advised to freely exchange these notes till January 1, 2015.
9. Is it necessary to be a customer of
the bank to exchange the pre-2005 series notes from its branches?
No. Banks have been advised to freely
provide this exchange facility to all members of public, whether customer or non-customer.
10. Is it necessary to get cash in exchange
or the amount can be credited in one’s account?
It is not necessary to get cash in
exchange for the pre-2005 notes. If a person desires, he can get the amount credited in
his bank account.
11. Is there any fee to be paid for the
No. The exchange facility is to be provided
free of cost by all bank branches.