The five-rupee banknote would cease to exist as a legal tender from January 1, 2012 onwards in conjunction with the federal government’s notification issued on December 22 last year. The State Bank has notified, through its Circular No. CMD/453/7(Dem-5)2011, that commercial banks would discontinue the issuance of the 5-rupee banknotes either issuable or re-issuable from the next fiscal year, starting from July 1 FY2011-12. However, according to the State Bank, the said banknotes in circulation would remain as a legal tender up till December 31, 2011. Directing the banks, the SBP regulator said, “Commercial banks are required to accept the five-rupee banknotes and exchange them with either banknotes or coins.”
The SBP added that: “These banknotes are required to be surrendered to the nearest/linked Field Offices of the State Bank of Pakistan, Banking Services Corporation /Chest branches of National Bank of Pakistan in suitable lots up till December 31, 2011.” Further, the central bank advised commercial banks to place this announcement on their counters in accordance with their ‘advertisement’ policy.
