The large volume of older currency would be withdrawn from circulation as a part of this initiative. Still the exact volume of such currency notes is not known. This withdrawal is the standard process and is done all over the world. The withdrawal of Pre-2005 currency notes by Central Bank is already on. The older currency lacks certain security features as compared to the new notes and that is the reason behind this withdrawal.
The currency notes circulated before 2005 has not much volume left in circulation as per the expert research and hence it will not affect the general public to larger extent. These notes will be considered for exchange even after July,1 and the holder of such notes can get their currency exchanged at the bank where he or she has an account.
This sudden move by RBI which was followed after the Central Bank directive had nothing to do with the forthcoming elections. This is just the part of security drive. Earlier also RBI had discontinued certain denominations from the market. These denominations were not withdrawn from the market even after discontinuing them from the market but this time this move is to make the currency more secure and hence RBI has decided to call back the currency.
If you have any currency note that falls under this pre-2005 group then it is time to get it exchanged.
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