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  • Category: Miscellaneous

    Validity and expiry dates for currency notes.

    Members,
    How it would be!
    Presently the currency notes live for a long for many decades despite becoming old and mutilated. They are valid forever until demonetization. Many stock and pile up the currency notes in their lockers, steel vaults, under the earth and wherever convenient to hide.

    To avoid this, what if we have validity and expiry dates for the currency notes. We can print the year of printing in bold letters in our currency notes and say that the currency note will not be valid after five years. Supposing a currency note printed in 2020 will be valid only upto 2025, and will not be valid in 2026. By this, no one will dare to store the currency notes, but deposit with the banks before the expiry of its validity. There won't be any black money in cash.

    Your views and comments please. Will it be Okay. What would be the pros and cons?
  • #719327
    It seems to be a good idea to eliminate the black money but people may not accept the currency notes which are going to expire very soon. It can become a headache for business community and consumers. Even after clarifying by the RBI, people in our area are not accepting Rs. 10 coins and small Re. 1 coins after a rumour spread out that there are some fake coins. Then see the mess that will be created by the expiring currency notes.

  • #719330
    Bhuvan,
    Banks should be accepting such currency notes till the last date of expiry. There shouldn't be any problem. Most people will get into digital transactions, and reduce cash transactions. The currency requirement will come down drastically. It would be easy to print less in number currency notes. I think it would help a lot. People should be guided, advised about the necessity of validity and expiry of currency notes.

    No life without Sun

  • #719331
    It is a good idea. But only problem would be that at the time of the expiry of the currency people will avoid it but banks can change it. It means there will be a long line in the banks by the people for converting the old and expired currency notes with the new ones. RBI can do a study in this matter before taking such a decision.
    Thoughts exchanged is knowledge gained.

  • #719332
    Sun, I liked your idea very much. But we have to see the difficulties involved in it also. During demonetisation, we have seen many people dying in queues. So, such scenarios should not happen. Let us wait for the responses of other members, who may find other difficulties.

  • #719336
    The idea of the author does not go well as there would be panic among those people whose currency notes notes are about to be expired and those who get it after the expiry dates would be loosing. Moreover each currency note has the promise to pay the bearer the sum of rupees either signed by the govt or the RBI governor and hence there cannot be expiry date as suggested by author. The present notes which are created new and printed with longer life duration cannot have the expiry date unless and until the govt wants to recall all the notes and change the design again and so on.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #719339
    Idea of the author is quite unprecedented but practically, it is not easy to carry out. You will have to keep your currency in check which notes are going to be expired and you will have to spend your time standing in queue for changing the same notes. However, if you have to deposit you may deposit these close to expiry date notes but it will be an unnecessary headache for people. Another drawback is that RBI will have to bear extra burden of printing charges of all new notes after a certain period. These notes will be required to get reprinted in number of crores notes.

  • #719343
    It can be done in slightly different way. Currency is a legal tender and Govt owns it and values it at anytime. So it can be made in form of a promissory note that after so many years Govt will return new currency in lieu of that old currency and it will not be time bound and one can return it at any time and if a person does not return it then Govt will give some nominal interest on it for honouring it for some time and the interest will be applicable from the date of expiry. So the currency note will become a bond from its date of expiry. Govt can always ask the source of money if a person goes to exchange his bonds in a large number.
    Knowledge is power.

  • #719345
    I agree that we all suffered a bit due to the sudden announcement of demonetization. But the proposal to have validity and expiry would be known to all. They can ensure to deposit all the currencies nearing their expiry date well in time. There won't be a long queue in banks as you think. Everything would be normal. People would be habituated to using valid currency notes. People would be smart enough in handling currency notes. What is important is to have a check on each and every currency note we have in our possession. Anyone depositing abnormal amount would be caught with their PAN number. Currency won't be stored by any individual or group, all would be held in their bank accounts only.
    No life without Sun

  • #719355
    When the coins are not having the validity dates mentioned on it, how it can be done on the currency notes. It is the self made apprehension and does not have credence,
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #719372
    The author has given a very good suggestion, just as the expiry date for all other things should be the same for the currency as if the date is given on the cards also, it is not impossible to apply it to the currency, But on the other hand, it is also true that this will result in huge loss of black money for broker and such corrupt people will not allow it to happen easily. Nevertheless, if any such law is implemented in the future, it will be a great gift for the country.

  • #719408
    The present practice is to hand over the soiled notes and torn notes in the banks and get the new notes. The government will print new notes based on the number of soiled and torn notes in the banks. If shelf life is decided, all these notes will become waste and they have to destroy them. So the cost of printing these notes will become and high and the expenses will become high for India. So the financial load is to be calculated and then take a decision accordingly. Once the expired notes are more destroying them also requires some money. So that point is also to be taken into account while making a decision.
    The proposal appears to be good. I think it will be a way to control black money. When they have to submit the expired notes in the bank they should tell the source also.

    drrao
    always confident

  • #719428
    We can adopt a policy of varying validity for different currencies. The high denomination currency note should have less validity. For example:
    Rs. 2000/- - Five years
    Rs. 1000/- Seven years
    Rs. 500/ - 10 years
    Rs. 200, and 100 - 15 years
    Rs. 50 and below - 20 years.

    No life without Sun


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