Discontinuation of GBP 5 !

GBP 5 Note

It is rightfully said that money speaks. But with the positive uses comes its piracy too. We all are very aware of the counterfeiters of money. In order to avoid this, we need our currency notes to be of the latest security and stay ahead of counterfeits. With the world and technology advancing at a rapid rate, we need to keep up with the latest technologies. A tried and tested method of reducing or avoiding fraud of money is the Currency Change.

This method now has been adopted by some countries to avoid piracy of the nation’s currency and even corruption, one of which is Great Britain.

Some of the examples of nations adopting demonetization are: 

  • Australia – In 1996, the nation decided to substitute its paper-based notes with polymer notes. This move changed all the currency in the country to a new kind of note that was made of a stronger material.
  • Pakistan – Pakistan has also decided to move all the currency notes with old designs out of the structure. Earlier also, the nation had demonetized PKR 5 and PKR 500 denomination notes.
  • Philippines – In 2015, the nation demonetized its bank notes which had been in circulation for 30 years with new ones which had only been in the movement since 2010 to prevent counterfeiting.
  • India – On 8th of November 2016, the Government of India declared the demonetization of all Rs.500 and Rs.1000 banknotes.  It stated that this was an action against black money and counterfeit.

Recently, the Great Britain also declared to adopt demonetization on the £5 Note and plans for higher currencies too in upcoming time. The Bank of England has decided that their next £5, £10 and £20 notes will be printed on polymer. It is because polymer notes are long lasting, cleaner and most importantly, harder to counterfeit as compared to old paper notes. The Bank of England note, which is also known as a fiver, is a banknote of the pound sterling also commonly known as £5 Pound. Among all the note denominators issued by Bank of England, £5 is the least of all .In September 2016, a new polymer note was introduced in England and Wales, which features the image of Queen Elizabeth II on the Front and a portrait of Winston Churchill on the reverse. The old paper note was first issued in 2002, bearing the image of prison reformer Elizabeth Fry on the reverse side, will terminate to be legal tender from on 5thMay 2017.This doesn’t mean the old notes lose their existence after this date. All withdrawn Bank of England notes remains valued at face value for all time. They can be replaced for new banknotes at the Bank of England, either in person in London or by post also. For damaged and mutilated notes, there is a different procedure. The new polymer fiver is the first among the new polymer series of England’s currency notes.

Following were some of the key dates in the process of discontinuation of GBP 5: 

Launch Event – 2nd June 2016

The new £5 note was revealed at Blenheim Palace.

New £5 Note Goes Into Circulation – 13th September 2016

Old £5 Note Goes Out Of circulation – 5th May 2017

The new polymer note, which is much stronger than the old one will initially be available from a handful of banks and cash points only. The ATMs in Manchester, London,Leeds, Hull ,Birmingham, and Cardiff will be among the first to stock them. However, only about 7% of cash machines dispense £5 notes. Most bank branches are likely to have the new notes within a week or so, telling those who want to obtain one may have to go into a bank and ask for one.

As per trusted sources, 440 million new £5 notes have been printed in total.

Effect on the common man:

You will withdraw the paper £5 notes gradually as they are banked by shops and businesses. If, after May 2017, you find you still have some paper £5 notes you can interchange them at the Bank of England. But until then carry on spending paper £5 notes as usual. It is

Features of the new fiver: 

  • Cleaner – It is recyclable and also long lasting so less notes need to be printed. It is better for the environment.
  • Safer – It has a number of new safety features which make it even harder to fake as compared to previous one. It has ‘see-through window’ and also has  the Elizabeth Tower foil. Only a small proportion of notes that is 0.0075% were counterfeit in 2015 but so as to stay ahead of these counterfeits these new security features are added.
  • Stronger – It is strong enough to last 2.5 times more than the old one. It is because polymer is stronger than paper and so they can withstand folds better. It can even survive a spin inside a washing machine.
  • A main feature of the new fiver is that it will be simpler for blind or partially-sighted people to use. In order to help vision impaired and blind people differentiate between the denominators, the notes hold tiered sizing and include bold numerals and similar color palettes to the current notes.

It certainly is a tactical and major step to increase the financial efficiency of the nation.

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