The State Bank of Pakistan (SBP) is considering discontinuing the Rs. 10 currency note. The change could come with Pakistan’s new banknote series.
SBP Deputy Governor Dr. Inayat Hussain shared the development with the Senate Standing Committee on Finance. He briefed lawmakers about plans for redesigned currency notes.
The central bank is reviewing the Rs. 10 denomination because of its rising production cost. Dr. Hussain said the SBP had considered ending the note twice before.
He said the Rs. 10 note would be discontinued when the new currency notes are introduced. Current reports indicate the denomination could instead continue through a Rs. 10 coin.
The proposed change is part of a wider currency redesign. The SBP is preparing new notes with enhanced security features.
The existing banknote series began with the introduction of the Rs. 20 note in 2005. Other denominations followed in subsequent years.
The federal cabinet has discussed the proposed new currency notes twice. A cabinet committee was also formed to examine their designs.
Changes were later made to the proposed designs. The latest versions remain under review before their eventual issuance.
The Senate committee also questioned the process used to select the company involved in designing the new notes. Members raised concerns about compliance with relevant rules and procedures.
SBP officials said the institution is autonomous. However, the committee stressed that applicable rules must still be followed.
The meeting also included concerns about counterfeit currency. The committee chairman claimed that fake notes had been dispensed through banks and ATMs.
He said some shopkeepers had become reluctant to accept Rs. 1,000 and Rs. 5,000 notes. The concern was linked to possible counterfeit currency.
Dr. Hussain said counterfeit currency was not widespread in Pakistan. He also offered to provide relevant data to the committee.
The committee chairman further said he had submitted three notes to the SBP for verification. Two were genuine, while one was counterfeit.
He said the notes had remained with the central bank for around two years. According to him, they had not yet been returned.
The SBP also said public acceptability was being considered during the currency design process. Senators questioned whether public preference should influence banknote designs.
Dr. Hussain said a federal cabinet subcommittee is currently reviewing the proposed notes. The cabinet has already made major changes to the designs.
The new notes will only be issued after the required changes are incorporated. The SBP had sent proposed designs to the Ministry of Finance about a year ago.
The ministry has yet to provide a response, according to the deputy governor. The timeline for introducing the redesigned notes therefore remains dependent on the ongoing review process.
The possible withdrawal of the Rs. 10 note would mark a change in Pakistan’s currency system. However, the decision is linked to the introduction of the new banknote series.
In other related news also read SBP Promotes Digital Payments in Cattle Markets Nationwide
The SBP is continuing work on the designs while authorities review their security features and other details.
