Business India

No plans to reissue Rs 1,000 note: Official

The government does not plan to reintroduce Rs 1,000 notes that were taken out of circulation by the demonetisation of high-value currency last November, a senior official said on Tuesday

“There is no proposal to reintroduce Rs 1000 note,” Economic Affairs Secretary Subhash Chandra Garg said in a tweet.

On Friday, the Reserve Bank of India (RBI) launched the Rs 200 denomination banknotes in the Mahatma Gandhi (New) series bearing the signature of RBI Governor Urjit Patel. These were issued by select RBI offices and some banks.

The note has the motif of the Sanchi Stupa on the reverse while its base colour is bright yellow.

The move is aimed at increasing the circulation of smaller denomination notes.

The RBI said the introduction of new denomination and design is done keeping in mind factors like ease of transactions, replacement of soiled banknotes, inflation and the need to check counterfeiting.

Noting that the optimal system of denominations of currency is one that minimises their number “and concurrently increase the probability of proffering exact change”, the central bank said that “in the lower end of the denomination series, Rs 200 is the missing one”.

“There is a logical need to introduce the missing denomination of Rs 200, which will make the present currency system more efficient.”

The RBI also said the supply of Rs 200 notes will soon be ramped up across the country through banking channels.

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IANS, also known as Indo-Asian News Service is a private news agency. IANS covers topics related to politics, entertainment, sports, general and world news etc.