The government plans to re-introduce Rs 1,000 currency notes soon and also issue new series of lower denomination bills with enhanced security features. However', old notes of Rs 100 and Rs 50 will remain legal tender even when new series will be brought in.
The government on Tuesday had demonetised Rs 500 and Rs 1,000 notes as part of its efforts to clamp down against the black money, fake currency and terror financing. These are being replaced with new currency bills of Rs 500 and Rs 2,000. “In a few months, Rs 1,000 notes with new features will be brought into the market,” said economic affairs secretary Shaktikanta Das.
Defending introduction of Rs 2,000 currency notes, finance minister Arun Jaitley said on Thursday that RBI board had recommended that due to inflation Rs 10,000 and Rs 5,000 currency notes be introduced but government didn’t accept it.
“After rethinking, Rs 2,000 notes (are being introduced) and Rs 500 are being allowed so that it is easier for people to handle notes. And after replacement when money will come in the banking system, there is no incentive for people to again turn it into black money,” said Mr Jaitley.
The new Rs 500 banknotes have extra security features besides having peculiar colour, theme and size which differentiate the new bills from the earlier series.
The Rs 2,000 notes, which are being introduced for the first time, will be of magenta colour with Mangalayan imprinted on the reverse side.
The higher value currency notes will have other designs, geometric patterns aligning with the overall colour scheme both on the obverse and reverse.
The new denomination has motif of the Mangalayan on the reverse, depicting the country’s first venture in interplanetary space. The Rs 500 banknotes will be stone grey in colour with a predominant new theme of the Indian heritage site Red Fort.
