The Reserve Bank of India’s move to withdraw pre-2005 currency notes will rationalise bank notes in circulation. The post-2005 notes carry added security features such as a machine-readable band, improved intaglio printing, identifier numerals printed on the obverse and reverse of the translucent register, visible watermark and electrotype mark, optically variable ink, dual-coloured optical fibres visible under ultraviolet light and, of course, the year of printing. These features help banks across the world stay ahead of counterfeiters.
By the end of the three-month period given to the public to begin exchanging old currency notes, we will see a massive rush of black money–holders seeking to convert their holdings into white. It will systematically improve the flow of currency in the country. Everyone, particularly persons at the village level, must be made aware of this to dispel fears over counterfeit money. It is a bold and correct decision by the RBI.
P.B. Sundara Rajan,
Currency-hoarders are bound to make a feverish bid to get rid of pre-2005 currency notes in the next few months. This raises a few questions for the common man. Should we exercise caution while receiving bulk payments and ascertain the minting dates of each note? What will be the upshot for such persons who land up at their bank on March 31 seeking to exchange large amounts of such cash? The RBI may kindly clarify in this regard.