KARACHI, July 9: Soiled and defective currency notes will not be cancelled after December 31, 2003 and these will continue to be legal tenders, a press release of State Bank of Pakistan announced on Wednesday.

Responding to reports published in a section of the press that Banking Services Corporation intends to cancel all the soiled and defective notes after December 31 this year, the SBP termed it as “incorrect and highly misleading”.

It said that soiled and defective currency notes are being withdrawn from circulation through commercial banks under a prescribed procedure. The banks have been asked to accept notes of all denomination whether soiled, cut, mutilated or defective from the general public in payment for their exchange value but should refrain from issuing such notes over the counters to redress hardships faced by the public.

The SBP press release reminded the general public of Legal Tender (Inscribed notes) Ordinance 1977 under which bank notes of any denomination which contain any inscription in any form, including slogans of political, religious or commercial nature and disfigured portrait of Quaid-e-Azam have ceased to be legal tender from June 2, 1977.