NEW DELHI, 10 Nov 2016:
The government will re-introduce 1,000 rupee banknotes in a few months and also issue new series of lower denomination bills with enhanced security features, the Press Trust of India (PTI) reports.
The government on Tuesday had demonetised the 500 and 1,000 rupee 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 500 and 2,000 rupee bills.
“In a few months, 1,000 rupee notes with new features will be brought into the market,” said Economic Affairs Secretary Shaktikanta Das while addressing the Economic Editor’s Conference here today.
The currency notes of lower denomination of 100 and 50 rupees will continue to be the legal tender, he said, adding the Reserve Bank will come out with new series of such notes with new design and added security features.
The Reserve Bank, time and again, has been introducing new series of currency notes with new design and enhanced security features.
Following the demonetisation of the 500 and 1,000 rupee currency notes, banks today started distributing the new 500 and 2,000 rupee notes.
The new 500 rupee banknotes have extra security features besides having peculiar colour, theme and size which differentiate the new bills from the earlier series.
The 2,000 rupee notes, 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 500 rupee banknotes will be stone grey in color with a predominant new theme of the Indian heritage site Red Fort.
The RBI is introducing new design banknotes in the denomination of 2,000 rupees as part of Mahatma Gandhi (New) Series.
All licensed money changers in Malaysia will no longer buy or sell the 500 and 1,000 rupee notes, said Malaysian Association of Money Services Business.
In a statement today, the association said: “The withdrawal of these notes affects all currency changers globally.
“Any members of the public who are in possession of these notes or who are travelling to India may refer to the notification and the frequently-asked questions (FAQs) issued by the Reserve Bank of India and the Ministry of Finance, Government of India.”
Reuters reported the following rules will apply for the currency note swaps:
- The old bank notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India, any bank branches or any head post office or sub-post office until Dec 30.
- People can get up to 4,000 rupees per person in cash when they exchange their old notes. Anything beyond that amount can be credited to their bank accounts.
- The notes can be exchanged at any bank branch, but only after showing a valid proof of identity such as a passport or driving licence.
- Some ATMs started functioning today, after being shut for a day for recalculation. A maximum of 2,000 rupees on one card can be withdrawn from ATMs in a single day. That limit will be raised to 4,000 rupees from Nov 19 onwards.
- From bank branches, one can withdraw a maximum 10,000 rupees a day. The weekly cap is 20,000 rupees, including withdrawals from ATMs.
- The tax office will take note of deposits made above a threshold of 250,000 rupees in a bank account and will match it with the income declared by the account holders.
- In case of a mismatch, the tax office will ask the account holders to pay extra taxes plus a penalty of 200% of the tax payable.
- Some banks have extended their hours to facilitate the exchange programme. All banks will remain open this Saturday and Sunday to help meet heavy demand.