When is the last date to exchange old banknotes?

• Old currency notes can be exchanged from the offices of the SBP's Banking Services Corporations.
• Last date has been extended till December 31, 2022, in order to facilitate public.
• Federal govt has approved exchange of Rs10, 50, 100 and 1,000 old notes.

 KARACHI: The State Bank of Pakistan (SBP) announced an extension in the last date for exchanging old banknotes of Rs10, 50, 100 and 1,000 after the approval of the federal government.

According to a statement issued by the State Bank of Pakistan (SBP), the government has extended the last date for exchanging old banknotes of Rs10, 50, 100 and 1000 till December 31, 2022, in order to facilitate the public.

The central bank mentioned that the old currency notes are exchangeable from the offices of the SBP Banking Services Corporations.

“These banknotes are exchangeable from SBP BSC Offices located at 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?

The central bank clarified that state bank is the sole issuer of banknotes in the country ensuring an adequate supply of good quality banknotes across the country is among its key strategic goals.

“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. Further, the approval for demonetisation of banknotes is granted by Federal Cabinet on the recommendations of the SBP Board in terms of section 25(2) of SBP Act, 1956,” it mentioned.

The issuance of new series and demonetisation of the old design banknotes helps central banks in checking to counterfeit and ensuring the integrity of banknotes in circulation.

The new series of banknotes was issued from 2005 to 2008 and the old design banknotes have been slowly phased out from circulation. The federal government has therefore decided to demonetise old design banknotes of Rs10, 50, 100 and 1000.