Nearly all denotified notes back in the system, says RBI data

Nearly all denotified notes back in the system, says RBI data

Nearly all denotified notes back in the system, says RBI data

The new currency note with enhanced security features could be out as early as December 2017, said a person close to the development.

In the process of remonetisation, the RBI issued new Rs 500 notes. A collateral damage as a result of rise in printing and other cost was dividend RBI pays to the government.

Coincident with the announcement of the withdrawal of legal tender status of specified bank notes (SBNs) on November 8, 2016, the RBI launched a nation-wide exercise to estimate the density of fake notes detected during the counting and verification of notes. The just-in sources stated that the Rs 1000 notes which were demonetized during November of 2016 will be renounced now, in another avatar. While Rs 200 notes are being introduced to bridge the link between the Rs 100 and Rs 500 value notes, Rs 1,000 is set to narrow the wide gulf between the Rs 500- and Rs 2,000-denominated notes.

The RBI also said that the value of banknotes in circulation declined by 20.2 percent during the year to Rs 13.1 lakh crore, reflecting the impact of demonetisation.

"As of now, there is no plan to reintroduce Rs 1,000 note", he had said.

Samajwadi Party leader Naresh Agarwal said his party would move a privilege motion against RBI governor Urjit Patel for "misleading a parliamentary panel by not revealing the number of notes returned". The share of the newly introduced Rs 2,000 notes in the total value of banknotes in circulation as at March-end was over 50%, noted the RBI annual report.

Former finance minister P Chidambaram said: "99 percent notes legally exchanged!"

The central bank also said it was in discussion with the government whether to accept the demonetised notes held by citizens and financial institutions in Nepal. "That is 1%. Shame on RBI which "recommended" demonetisation", he said.

Following the report, the Opposition quickly poun-ced on the data to attack the government, with former finance minister P. Chidambaram wondering if demonetisation was "a scheme created to convert black money into white".

The Reserve Bank is facilitating implementation of the system in collaboration with NCRB.

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