SBP Considers Discontinuing Rs. 10 Note with New Currency Series
The State Bank of Pakistan (SBP) is considering discontinuing the Rs. 10 banknote when a new series of currency notes is introduced, a senior central bank official told the Senate Standing Committee on Finance on Tuesday.
SBP Deputy Governor Dr. Inayat Hussain briefed the committee on plans for a new banknote series featuring updated security features.
Rs. 10 Note May Be Withdrawn
Dr. Hussain said the SBP had previously considered withdrawing the Rs. 10 denomination on two occasions. The central bank is now reviewing the option again as the cost of producing the note has increased.
He told the committee that the Rs. 10 note would be discontinued once the new currency series is introduced.
The current banknote series has been in circulation since 2005, and the SBP is now working on designs for replacement notes with enhanced security features.
New Banknote Designs Under Review
SBP officials told the committee that the federal cabinet has discussed the proposed currency notes twice. A cabinet committee was also formed to review the designs, following which several changes were made.
The proposed notes will only be issued after the required revisions are completed and approved.
The committee also raised questions about the selection of a company involved in the design process. An SBP Executive Director told members that the company associated with the consultant would also carry out the design-related work.
Senators emphasized that the central bank should follow all applicable rules and procedures while maintaining its institutional autonomy.
Committee Raises Counterfeit Currency Concerns
During the meeting, the committee chairman also raised concerns about counterfeit currency and said some shopkeepers had become cautious about accepting Rs. 1,000 and Rs. 5,000 notes.
Dr. Hussain said counterfeit currency was not widespread in Pakistan and offered to provide relevant data to the committee.
The chairman also mentioned three banknotes that he had submitted to the SBP around two years ago for verification. According to him, one was found to be counterfeit while two were genuine, but the notes had not yet been returned.
Final Decision Pending
Dr. Hussain said public acceptability is also being considered as part of the banknote design process.
The proposed currency series is currently under review by a federal cabinet subcommittee. The cabinet has already suggested significant changes to the designs.
The SBP had sent the proposed designs to the Ministry of Finance around a year ago and is still awaiting a response.
The Rs. 10 note has not been discontinued yet. Any change will take place only after the new currency series is finalized and officially introduced.
