The deadline for exchanging pre-2005 currency notes of various denominations including Rs 500 and Rs 1,000 has been extended by another six months till June 30, 2015.
"The Reserve Bank of India has stated that the public can do so till June 30, 2015. Earlier in March 2014, it had set the last date for public to exchange these notes was January 1, 2015," the RBI said in a statement.
The apex bank clarified that all such notes will continue to remain a legal tender. These notes can be exchanged for their full value, it added.
As per the latest data, 73.2 crore pieces of Rs 100 note (Rs 7,320 crore); 51.85 crore pieces of Rs 500 (Rs 25,925 crore), and 19.61 crore pieces of Rs 1,000 (Rs 19,610 crore) have been shredded in the the RBI's regional offices from January to October this year.
You can easily distinguish the currency notes issued before 2005 as these currencies do not have the year of printing on reverse side. The year of printing is visible at the middle of the bottom row in notes issued after 2005.
Will pre-2005 notes have no monetary value after 31 March?
The Reserve Bank has clarified that the notes issued before 2005 will continue to be legal tender. This means currency would hold monetary value but would be only acceptable at banks where the public can exchange the notes. In other words, the pre-2005 notes would be acceptable only at banks.
How to exchange pre-2005 notes:
Old notes will continue to be legal and can be exchanged in any bank. However, 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. If you are an account holder of the bank, these proofs are not needed.
Why the RBI is withdrawing notes issued before 2005:
The RBI has said that notes printed prior to 2005 have fewer security features compared to banknotes printed after 2005. The RBI has already been withdrawing these bank notes from the market in a routine manner through banks.
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