Following consent from the federal government, the State Bank of Pakistan (SBP) has extended the deadline for exchanging the obsolete banknotes of four denominations that were demonetised six years ago.
The central bank announced on its official website that the government has extended the deadline for exchanging the old-style, large-sized Rs. 10, 50, 100, and 1,000 banknotes until December 31, 2022.
The SBP ordered that these obsolete currency notes be exchanged by the general public at the local offices of commercial banks and SBP’s Banking Services Corporations.
“These banknotes are exchangeable at SBP BSC Offices located in Karachi, Lahore, Peshawar, Quetta, Islamabad, Rawalpindi, Faisalabad, Multan, Gujranwala, Hyderabad, Sialkot, Sukkur, Bahawalpur, Muzaffarabad and D I Khan,” the statement read.
Why are the notes replaced?
“SBP collects soiled and unfit banknotes from the market and replaces them with fresh banknotes. Like other central banks, SBP issues new series of banknotes from time to time and demonetises the earlier series with the approval of the federal government,” the statement said.
“Further, the approval for demonetisation of banknotes is granted by the federal cabinet on the recommendations of the SBP Board in terms of section 25(2) of SBP Act, 1956.”
The state bank is the only issuer of currency in the nation, according to the central bank. One of its primary strategic objectives is to guarantee an adequate supply of high-quality banknotes throughout the nation.
The SBP stated in a statement that the introduction of new series and the demonetization of old-style banknotes will enable central banks in thwarting counterfeiting and preserving the integrity of in circulation banknotes.
The old design banknotes were gradually taken out of circulation as the new series of banknotes was released from 2005 to 2008. Therefore, the federal government has decided to demonetize old design Rs. 10, 50, 100, and 1000 banknotes.