RBI to introduce new Rs 1,000 notes, printing already underway: report

Mumbai: The Reserve Bank of India (RBI) may introduce a new series of Rs 1,000 notes, to replace the earlier notes of similar denomination that were demonetised on November 8.

According to a report in the Indian Express, RBI has already started production of new Rs 1,000 notes.

Quoting an official, the report says that the note was supposed to be introduced in January, but “it has been delayed due to the pressing need to supply Rs 500 notes”.

However, it is not clear when the new Rs 1,000 note will be introduced, added the report.

The logic behind introducing the new Rs 1,000 note is that it will make transactions in Rs 2,000 notes easier, said the report.

As on January 27, notes in circulation, comprising all denominations including Rs 2,000 and Rs 500, were Rs 9.92 lakh crore, RBI Deputy Governor R Gandhi said on February 8. But the RBI has not released data on the total value of Rs 500 and Rs 2000 notes in circulation.

RBI Governor Urjit Patel however has said that specific data on the value of new notes released into the economy will be disclosed soon.

A number of steps have been taken to ease the cash crunch following demonetisation. February 20 onward, the limit on cash withdrawals from savings bank accounts are being raised to Rs 50,000 per week from the earlier limit of Rs 24,000 per week. From March 13, all limits on cash withdrawal from savings bank accounts will be removed.

The Indian Express report adds that an email sent to the RBI and finance ministry for comments on the re-introduction of Rs 1,000 notes ‘did not elicit any response’.