In a significant briefing to a parliamentary committee, State Bank of Pakistan (SBP) Governor Jameel Ahmad has put rumors to rest, clearly stating that there is no proposal under consideration to discontinue the Rs 5000 currency note. This announcement addresses widespread public speculation and concerns about the potential removal of the high-denomination note from circulation.
Governor Ahmad informed the committee that the central bank is, however, moving forward with plans to introduce newly designed currency notes for all denominations. The SBP board has finalized these designs, which incorporate advanced security features, and has sent them to the federal cabinet for final approval. The issuance of the new notes now awaits the government’s green light.
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The modernization drive includes exploring the experimental introduction of plastic currency notes to enhance durability and security. This indicates a broader move towards integrating modern technology into Pakistan’s monetary system.
During the meeting, Chairman FBR Rashid Mahmood Langrial cautioned that even discussing the phasing out of the Rs 5000 note could create volatility in the economy. Committee Chairman Senator Salim Mandviwalla concluded the discussion by stating that since the Governor had made the position clear, the matter should be considered closed.
The session also tackled the issue of SMS charges levied on customers for ATM transaction alerts. Governor Ahmad clarified that mandatory alerts are free, while charges apply only to additional, value-added service messages. He revealed that telecom companies’ SMS costs have surged from 4 paisas to over Rs 4 in two years, prompting the committee to consider summoning telecom representatives for further investigation.
Other discussions included simplifying the process of opening bank accounts and trade in currencies other than the US dollar with countries like China and Russia.
FAQs: Your Questions Answered
1. Is the Rs 5000 note being banned?
No. The State Bank Governor has clearly stated that there is no proposal to discontinue or demonetize the Rs 5000 currency note.
2. Why are new currency notes being introduced?
The SBP is introducing new notes for all denominations with modern security features to combat counterfeiting and integrate advanced technological standards.
3. Will there be plastic notes in Pakistan?
The State Bank is considering the experimental introduction of plastic notes, but no final decision or timeline has been announced yet.
4. Why am I charged for bank transaction SMS alerts?
According to the SBP, you are only charged for non-essential, value-added SMS alerts. Mandatory transaction notifications are free. The high charges are set by telecom companies, not the banks or SBP.
