RBI orders withdrawal of old notes, Holders can exchange notes in Banks
RBI in an order have withdrawn the 500 notes issued prior to 2005. These notes will not be accepted by RBI after 30/06/2014.
RBI have asked public to exchange the notes with Banks from july 2014. These notes will be accepted by banks and bank will exchange the notes.
Account holders in Banks can exchange the notes, however non-account holders have to produce the id proof to exchange the notes.
RBI has clarified on the matter that notes are withdrwan because these notes have low security controls and withdrawal is due to international move.
Notes issued after 2005 are nore secure to identify the fake notes.
The withdrawl of old notes is a good move. People will exchange their notes otherwise after a time the notes will be invalid.
People holding black money will be in trouble. They will change their notes now. Its a good move to bring black money in economy of country.