Last Updated on: 20th July 2023, 05:13 pm
Last Date For Exchanging Banknotes is Extended To December 31st
Following approval from the federal government, the State Bank of Pakistan (SBP) has extended the deadline for exchanging obsolete banknotes of four denominations that were canceled six years ago.
The central bank announced on its official website that the government has extended the deadline for exchanging old rupees. Banknotes of 10, 50, 100, and 1,000 until 31st December 2022.
SBP has arranged for the public to redeem these obsolete notes at local commercial banks and SBP banking services companies.
“These banknotes can be exchanged at SBP BSC offices in Karachi, Lahore, Peshawar, Quetta, Islamabad, Rawalpindi, Faisalabad, Multan, Gujranwala, Hyderabad, Sialkot, Sukkur, Bahawalpur, Muzaffarabad, and DI Khan,” the press release said.
Why Are The Banknotes Replaced?
“SBP collects dirty and unsuitable bills from the market and replaces them with new ones. Like other central banks, the SBP issues new series of banknotes from time to time and cancels the previous series with the approval of the federal government,” the statement said.
“Furthermore, the Federal Cabinet gives approval for the debasement of banknotes on the recommendation of the SBP Board of Directors pursuant to Section 25(2) of the SBP Act of 1956.”
According to the central bank, the state bank is the only issuer of foreign currencies in the country. One of their main strategic goals is to ensure a sufficient supply of high-quality banknotes across the country.
SBP said in a statement that introducing new series and demonetizing old notes would allow central banks to prevent counterfeiting and preserve the integrity of notes in circulation.
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The old model banknotes were gradually phased out when the new note series was introduced between 2005 and 2008. Therefore, the federal government decided to cancel the old sample banknotes of 10, 50, 100, and 1000 rupees.