SBP denies rumours about discontinuation of Rs5000 banknotes

LAHORE: The State Bank of Pakistan (SBP) has dismissed rumours circulating on social media regarding the discontinuation of Rs5,000 banknote, it said on Monday.

In a press release issued on Monday, the central bank said “It is further clarified that SBP Act, 1956 clearly defines the roles and responsibilities of different institutions including SBP for issuance, circulation and demonetization or cancellation of banknotes.

Specifically, section 25 of the Act requires a recommendation of SBP Board of Directors before the Federal Government makes any decision about the demonetization or cancellation of banknotes.”

It added, the SBP Board has not submitted any recommendation for demonetization or discontinuation of Rs5,000 or any other banknote to federal government or the cabinet.

The central bank said in case of demonetization of any bank note, it announces it in advance and gives ample time to the public to change the currency under demonetization process.

Furthermore, SBP stated that it places all such announcements on its official website and shares it on social media as well.

The public is therefore advised not to pay heed to any such rumors which are aimed at creating unnecessary hype and anxiety, said SBP.