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All old banknotes to be demonetized from December 1

KARACHI: State Bank of Pakistan (SBP) Monday decided to phase out all old design banknotes of Rs 10, 100 and 1000.

The decision was taken citing the federal government’s Gazette Notification dated 4th June, 2015, according to which old design banknotes will cease to be legal tender with effect from 1st December 2016.

According to a press release issued by SBP spokesman, the Rs 5 banknote and the old design Rs 500 banknote have already been demonetized.

It is worth mentioning that the State Bank of Pakistan issued a new design banknote series which started with the issuance of Rs 20 denomination banknote in 2005 to improve the “security, durability and aesthetic quality of banknotes”.

The process of issuance of complete series of new design banknotes comprising eight denominations (Rs 5, 10, 20, 50, 100, 500, 1000 and 5000) was completed in 2008.

The commercial/microfinance banks will accept the old design banknotes of Rs 10, 50, 100 and 1000 and exchange the same with the new design banknotes and coins of all denominations up to 30th November 2016.

However, SBP BSC field offices will continue to accept the old design banknotes of Rs 10, 50, 100 & 1000 from general public up to December 31, 2021.

The last day to exchange all old design banknotes from banks is November 30, 2016. All old design banknotes shall cease to be legal tender on December 01, 2016 while last day to exchange all such banknotes from SBP BSC field offices is December 31, 2021.