(CTN News) – State Bank of Pakistan (SBP) announced an extension in the last date to exchange old banknotes of Rs10, 50, 100, and 1,000 after approval from the federal government.
According to a statement issued by the State Bank of Pakistan (SBP), the government has extended the deadline for exchanging old banknotes of Rs10, 50, 100 and 1000 till December 31, 2022, to facilitate the public.
SBP Banking Services Corporation offices exchange old currency notes.
“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 D I Khan,” the statement read.
Why are the notes replaced?
Among its key strategic goals is to ensure an adequate supply of good quality banknotes across the country via the state bank as the only issuer of banknotes in the country.
“The SBP collects and replaces dirty, unfit banknotes from the market. SBP issues new series of banknotes from time to time and demonetizes the older series with the approval of the federal government. The approval for demonetization is granted by the Federal Cabinet on the recommendations of the SBP Board in accordance with section 25(2) of SBP Act, 1956,” stated the statement..
The issuance of new series and demonetization of old design banknotes allows central banks to check for counterfeits and ensure the integrity of the banknotes in circulation.
The new series of banknotes were issued from 2005 to 2008, and the old design notes have been gradually phased out. Due to this, the government has decided to demonetise old design banknotes of Rs10, 50, 100, and 1000.