CBS demonetises the 10, 25 and 50 banknotes |08 February 2018

The Central Bank of Seychelles (CBS) has announced that the old 10, 25 and 50 rupee notes are to be taken out of circulation, effective from February 15, 2018.

Mike Tirant, the head of banking services at the CBS, made this announcement yesterday stating that these banknotes will no longer be valid for transaction from February 15 of this year.

The old 10, 25 and 50 rupee banknotes are from the previous 1998 series which was recently replaced by a new currency series in late 2016.

This is the second demonetisation phase -- the process whereby a currency ceases to be of legal tender by the issuing authority — and has been approved by the President of the Republic, Danny Faure. The R100 notes also issued in 1998 and the R500 notes brought into circulation in 2005 were the first to be demonetised last year.

It is to be noted that there are 3 versions of the R50 notes that are expected to be demonetised: a version with a metallic tactile swordfish which was introduced in 2005, a version with a holographic swordfish introduced in 2011 as well as the original 1998 version without the swordfish.

As from now members of the public have until February 14 to deposit these notes that are still in their possession at their respective commercial bank or at the Seychelles Credit Union. Those without an account at neither may exchange their banknotes at the Central Bank during that period.

Residents of Praslin and La Digue who also do not have bank accounts have been advised to exchange theirs at any commercial banks or branch of Credit Union on these islands until February 14 only.

Once these notes become invalid on February 15, the public will only be able to change them at the Central Bank. As per the norm, members of the public will be required to complete a form and submit a valid proof of identification to perform the exchange.

“The previous demonetisation that was done in 2017 for the R100 and R500 notes  were of high value and high quantity in circulation and back then we felt that giving a few months notice was the right way to ensure that the public became accustomed to this process,” Mr Tirant stated.

Mr Tirant further explained that this time around CBS has given only a week’s notice because not only have the public been accustomed to the process but so have the commercial banks and the personnel at CBS.

He estimated that there are about 14 million rupees worth of these R50 notes in circulation at the moment, 10 million for the R25 notes and 17 million rupees for the R10 notes.

“The removal of these notes in circulation will also eliminate the doubts and confusion among the public, whereby even if the R10, R25 and R50 were still valid certain traders refused to accept them,” he highlighted.

The previous R5, R1, 0.50 cents, 0.25 cents, 0.10 cents, 0.05 cents and 0.01 coins from the 1982 series will remain in circulation indefinitely.

The 10, 25 and 50 rupee notes in the photographs will cease to be legal tender as from February 15, 2018