The RBI and the government have firmed up plans to launch a new series of Rs 1,000 notes shortly to replace the earlier note of similar denomination that was withdrawn from circulation following the November 8 demonetisation announcement, a senior government official has told The Indian Express. The RBI, the official said, has already started production of the new Rs 1,000 note. According to the official, the initial plan was to introduce the new Rs 1,000 note in January but “it has been delayed due to the pressing need to supply Rs 500 notes”.
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It is not clear when the new note of Rs 1,000 will be officially introduced into the market. To replace old notes of Rs 500 and Rs 1,000 during demonetisation, the RBI had issued new notes of Rs 500 and Rs 2,000 which carried new designs, better security features and the picture of Mangalyaan on the back of the notes. The new notes are being issued to replace Rs 15.44 lakh crore worth of demonetised currency notes.
As on January 27, notes in circulation, comprising all denominations including Rs 2,000 and Rs 500, were Rs 9.92 lakh crore, RBI Deputy Governor R Gandhi said on February 8. The central bank has not shared information of the total value of Rs 500 and Rs 2,000 notes that have been issued.
February 20 onward, the limit on cash withdrawals from savings bank accounts are being raised to Rs 50,000 per week from the earlier limit of
Rs 24,000 per week. Effective March 13, all limits on cash withdrawal from savings bank accounts will be removed.
Transactions in Rs 2,000 notes are expected to become easier with the introduction of Rs 1,000 denomination notes. While a bulk of the currency that was demonetised has been deposited into banks, the RBI is yet to provide the exact data. The RBI has given Indians who were abroad between November 9 and December 30, a three-month grace period until March 31 to deposit the old notes. For NRIs, this deposit window is open until June 30.
On February 11, when he was asked when would the RBI release data on the old notes of Rs 500 and Rs 1,000 deposited in banks, RBI Governor Urjit Patel said that the central bank will provide a number which is verifiable and not merely an estimate.
“Given that the window is open until March 31 and then at a lower level until June 30, we need to be careful and try as hard as possible that this is a number that is not a mere estimate but a verifiable number, both physically and in accounting stance,” Patel said.
An email sent to the RBI and finance ministry for comments on the re-introduction of Rs 1,000 notes did not elicit any response.