State Bank of Pakistan is considering to discontinue the currency notes with denomination value of Rs. 5,000, said State Bank of Pakistan (SBP) Deputy Governor Saeed Ahmad while briefing a recent meeting of Public Accounts Committee.
He said that certain quarters have approached State Bank requesting to discontinue Rs. 5,000 currency notes, after which the central bank is evaluating the situation and may discontinue the said currency notes.
Deputy Governor was of the view that coins are preferred globally due to longevity and lesser chances of forgery, coupled with requests from various quarters, it has compelled the bank to consider the future of Rs. 5,000 currency note.
Sheikh Rasheed Ahmed, a PAC member, opined that there has been an increasing trend of fake Rs. 5,000 currency notes, causing notable loss to masses. Moreover, these high denomination value notes are used in illegal activities as criminals can carry large amount without any fear of detection.
Deputy Governor SBP explained that while there might be difficulties in carrying large amounts for business transactions, forgery cases are alarming and demanded a discussion whether to continue or discontinue the Rs. 5,000 denomination notes.
It would be interesting to note here that the cost of minting a coin — of almost any value — is Rs. 3 and it it lasts up to 40 years. While on other hands, the cost of printing a Rs. 100 denomination note is Rs. 3.6, but it lasts only from six months to two years.