After rolling out new Rs 200 and Rs 50 notes, the Reserve Bank will soon be re-introducing the Rs 1,000 note that was demonetized in 2016.
According to a report by DNA, the Rs 1,000 note will be brought back to fill in the vast gap between the existing Rs 500 and Rs 2,000 notes.
However, this is in contradiction to what the central bank had said before. Economic Affairs Secretary Shaktikanta Das had in February said that RBI has no plans of introducing Rs 1,000 notes.
In his effort to curb black money and counterfeit notes, Prime Minister Narendra Modi had scrapped Rs 1,000 and Rs 500 notes on November 8, 2016. RBI had then issued new Rs 500 and Rs 2,000 notes into the currency system.
The central bank on August 25 also issued new Rs 200 and Rs 50 notes, in an effort to address the lack of low denomination currencies and bridge the gap between Rs 100 and Rs 500 notes.
According to the DNA report, preparations for releasing the new Rs 1,000 note are on. The new note will reportedly have updated security features and can be expected by December 2017. “The printing presses at Mysore and Salboni are getting ready to print the brand-new Rs 1,000 notes which will have enhanced security features,” the person said.
The new Rs 1,000 note will be beneficial for everyday use, since low-value currencies are in higher demand.