New Rs. 1,000 notes to come with enhanced security features
What's the story
The Rs. 1,000 note, which went out of circulation last November, is making a comeback in a new avatar. Sources say a need for it was felt due to lack of denominations between Rs. 500 and Rs. 2,000, making certain transactions tedious. The new note will reportedly have improved security features and is expected to be out by December.
Lacking
In the present currency system, India wasn't meeting global norms
India currently has currency in denominations of Re. 1, Rs. 2, 5, 10, 20, 50, 100, 500 and 2,000. Rs. 200 notes were released recently. According to the Renard system followed globally, the ratio between adjacent denominations should be 1:2 or 1:2.5. This facilitates most transactions in maximum three denominations. "Rs. 2,000 note will continue to exist but focus will be on lower-denomination notes," a source said.
Delay
But just printing of notes isn't enough
The printing of the new Rs. 1,000 note will start soon at presses in Mysore and Salboni. Printing of Rs. 2,000 notes stopped six months ago, now Rs. 200 notes are being printed. However, the Rs. 200 note is of the size 66 mm X 146 mm. ATMs haven't yet been calibrated to fit the new dimensions, causing a delay in circulation.