KARACHI: The State Bank of Pakistan announced on Wednesday that old design bank notes of Rs50 and Rs1,000 would be phased out from the financial system.

“It has been decided to phase out the old design banknote of Rs50 and Rs1,000. The commercial and microfinance banks will stop issuance of old design banknote of Rs50 and Rs1,000 with effect from November 1, 2013 (Friday),” said a press release issued by the SBP.

However these banknotes in circulation will remain legal tender (will remain in use) till further order, it added.

The commercial and microfinance banks have been advised to accept these banknotes from the public by exchanging the same with banknotes and coins of all other denominations.

Banks will start surrendering the above old design banknotes in suitable lots to the offices of SBP Banking Services Corporation in due course, said the SBP.

Earlier, the State Bank phased old bank note of Rs500 which was larger in size. The old Rs50 and Rs1,000 bank notes are also large in sizes.

When the new currency notes were issued with an idea to print with more features from security point of view, the old banknotes were left in the market for more than five years.

Two types of banknotes with same denominations are still available which creates doubt particularly among non-resident Pakistanis who visit the country after long gaps.