(Image source from: RBI grants additional time to exchange pre-2005 currency notes})

Now you can use pre-2005 currency notes until December 31, 2014. On Monday, the Reserve Bank of India extended the time for exchanging pre-2005 currency notes by nine months. Earlier the deadline was April 1, 2014.

The extension of deadline for exchanging pre-2005 currency notes includes Rs 1,000 and Rs 500 denominations.

In the release India's central bank directed banks to facilitate the exchange of currency notes to their full value and with least inconvenience to the people. For now the people possessing the currency notes printed before 2005 can use them freely during transactions as the notes remain legal tender.

On January 22, RBI had advised the general public to exchange all pre-2005 currency notes at banks, as the government has decided to withdraw them from circulation from April 1. The Apex bank had stated that its decision to withdraw pre-2005 currency notes was in conformity with the standard international practice, where notes of multiple series was avoided at the same time in circulation.

The RBI stated that only a small number of notes are still the people now as most of the currency notes printed before 2005 have already been withdrawn through exchange in banks.

Currency notes printed after 2005 have a security features added to it, which is expected to curb fake currency.

(AW: Pratima Tigga)