SBP rejects rumours about discontinuation of Rs.5000 banknotes

KARACHI: State Bank of Pakistan (SBP) has dismissed rumours circulating on social media regarding discontinuation of the Rs.5000 banknote and requested the general public to pay no heed to such disinformation.

It is further clarified that SBP Act 1956 clearly defines the roles and responsibilities of different institutions including SBP for issuance, circulation and demonetisation or cancellation of banknotes.

More specifically, section 25 of the Act requires a recommendation of SBP Board of Directors before the federal government makes any decision about the demonetisation or cancellation of banknotes.

The central bank stated that the SBP Board has not submitted any recommendation for demonetization or discontinuation of Rs.5000 or any other banknote to federal government or cabinet.

Furthermore, in case of demonetization of any bank note, SBP announces in advance and provides ample time to public to change the currency under demonetization process.

It further stated that all such announcements are placed on its website and circulates the same through its social media platforms as well.

It further advised the public not to pay heed to any such rumours which are aimed at creating unnecessary hype and anxiety.  The public is also requested to verify the announcement from the central bank’s website or social media sites before forwarding to their contacts.

Last month, Finance Minister Asad Umar had also denied the reports regarding discontinuation of Rs. 5,000 currency notes. He termed the rumours circulating on social media as baseless and said that no such proposal was under consideration.

Unverified reports were going rounds on social media claiming that the government was about to discontinue the notes within days prompting panic among the public prompting the government to issue a clarification.