With effect from December 1st, 2016, all old design bank notes will cease to be legal tender as per the Federal Government’s Gazette notification, dated June 4th, 2015. Under the light of this notice, all old design bank notes of Rs 10, 50, 100 and 1,000 will be phased out. In fact, the Rs.5 banknote and the old Rs.500 notes have already been demonetized.
It is important to note that it was in 2005, when the State Bank began releasing new designs of Rs.20 notes, a process which was completed in 2008 when all other denominations received new designs. The aim behind this move was to improve the durability, security and aesthetic quality of the Pakistani currency notes.
Commercial and micro-finance banks have been directed to accept old design banknotes of Rs.10, 50, 100 and 1000 until November 30th 2016, exchanging the old, soiled or damaged currencies with new notes with the general public.
Do ensure that you return all old design notes no later than November 30th, 2016 as starting from December 1st, 2016, old bank notes will cease to be legal as per the State Bank of Pakistan’s directives.
However, in case you miss this deadline, the State Bank of Pakistan’s BSC field offices have been directed to accept the bank notes of denomination Rs. 10, 50, 100 and 1000 until December 2021 so that the general public does not end up being inconvenienced by the demonetization move. As the state regulator, State Bank is doing its part to phase out the old currency notes in use by Pakistanis at the earliest.