November 22, 2022 (MLN): The Federal Government has decided to demonetize old design banknotes of Rs10, 50, 100, and 1000 which can be exchanged at the offices of the State Bank of Pakistan (SBP) Banking Services Corporations (BSC) till 31st Dec’22, a statement issued by SBP on Tuesday showed.
The issuance of new series and demonetization 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.
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.
Moreover, 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 demonetizes the earlier series with the approval of the Federal Government.
Further, the approval for the demonetization of banknotes is granted by Federal Cabinet on the recommendations of the SBP Board in terms of section 25(2) of the SBP Act, 1956.