Rs5 note may be discontinued

The issuance of five-rupee notes and coins has temporarily been stalled by the SBP as it awaits a cabinet decision.

ISLAMABAD: The issuance of five-rupee notes and coins has temporarily been stalled by the State Bank of Pakistan (SBP) as it awaits a cabinet decision on whether the five-rupee note or coin will be discontinued.

This has resulted in a shortage of notes and coins of the five-rupee denomination in the market.

At the same time, the federal government has also decided to invalidate the old five hundred rupee note.

Finance ministry sources disclosed that proposals to invalidate the old five hundred rupee note and choose between the five rupee coin and note of the corresponding denomination have been sent to the federal cabinet for final approval.

They also indicated that the likelihood of the five-rupee note being discontinued was quite high.

However, the central bank has decided that until a final decision is reached on the matter, it will stop issuing both instruments.

Furthermore, SBP has also clarified that after the new five hundred rupee notes were issued, the old notes of the same value were not pulled out of circulation.

Thus, the value of old five hundred rupee notes still in circulation currently amounts to billions.

Published in The Express Tribune, August 26^th, 2010.