1,000 rupee notes will not be re-introduced, says FinMinLast updated on Aug 30, 2017, 11:06 am
Since there had been disequilibrium in the market after the introduction of Rs. 2,000 notes straight after Rs. 500, the center has recently introduced the new Rs. 200 notes.
However, rumors were afloat that the government will also re-introduce Rs. 1,000 currency bills.
This, unfortunately, is not the case and the government has no intentions to do so in the near future.
Why it is not needed?
On November 8, 2016, the government had made the then prevalent Rs. 500 and Rs. 1,000 currency notes void.
This created a pressure on lower-denomination currency bills. Therefore, bright-yellow Rs. 200 notes were launched by RBI on August 25 to remedy it.
Hence, the government feels there is no need to re-introduce Rs. 1000 notes.
How did the rumor spread?
Meanwhile, several news reports were coming in that suggested that Rs. 1,000 currency bills, which were discontinued, will be re-introduced by the government.
Quashing these rumors, Economic Affairs Secretary Subhash Chandra Garg tweeted that "There is no proposal to reintroduce 1,000 rupee note."
Therefore, new Rs. 200 rupee notes and the revamped Rs. 50 currency bills will have to suffice, for now.
What would be the future course of action?
Earlier, rumors of the center banning Rs. 2,000 notes had also surfaced.
Alleviating the fears, Finance Minister Arun Jaitley said last week that the government had no intention of doing so.
However, what the government will do is ramp up the supply of Rs. 200 notes so that, the "missing link," between Rs. 100 and Rs. 500 notes, can be filled, informed RBI.