No proposal to reintroduce ₹1,000 notes

NEW DELHI: Within days of introducing new 200 rupee notes, the finance ministry on Tuesday ruled out re- introduction of ₹1,000 currency bills, which were scrapped as part of the demonetisation move last November.

“There is no proposal to reintroduce 1,000 rupee note” economic affairs secretary Subhash Chandra Garg in a tweet.

The statement comes amid reports that the government may re-introduce ₹1,000 notes.

The government had announced the withdrawal of old ₹500 and ₹1,000 currency notes on November 8, 2016, with an aim to check black money, counterfeit notes and terror financing.

The Reserve Bank of India had, on August 25, had launched ₹200 notes to ease pressure on lower-denomination currency bills and also fill the “missing link” between R100 and R500 currency.

Post demonetisation on November 9 last year, RBI had introduced ₹2,000 notes and also issued new ₹500 bills with additional security features.

Besides 200 rupee notes, ₹50 currency bills with new look was also introduced earlier this month.

RBI has already announced that it would be ramping the supply of ₹200 notes.

The optimal system of denominations of currency (coins and notes), RBI had said, was one that would minimise the number of denominations and concurrently increase the probability of proffering exact change.