No plans to bring in new Rs 1000 notes, Centre clarifies

Rajat Kain

File photo of scrapped  Rs 1000 currency note. It was stopped from circulation after government's move to demonetise currency on Nov 8, 2016. Photo - PTI

File photo of scrapped Rs 1000 currency note.
It was stopped from circulation after government’s move to demonetise currency on Nov 8, 2016.
Photo – PTI

Government has no plans to bring back Rs 1000 currency notes in new form, at least in the near future. Putting the speculation to rest, Department of Economic Affairs Secretary Shanktikanta Das, stressed that the establishment’s effort is to streamline the already existing currency and new currency notes introduced post the demonetisation.

“No plans to introduce Rs 1000 notes. Focus is on production and supply of Rs 500 and lower denomination notes,” he wrote on the micro blogging site Twitter this morning.

The government introduced Rs 2000 currency note, while rolled-out a new Rs 500 currency note after decision to demonetise the existing Rs 1000 and Rs 500 on November 8, 2016.

While there have been political reactions to the move, with Opposition criticising the government and in particular Prime Minister Narendra Modi, there were reports of major inconvenience due to long queues in the banks to exchange the scrapped currency and at the ATMs.

File photo of people wait in a long queue to exchange their old Rs 500 and Rs 1000 notes outside Reserve Bank of India in New Delhi on Sunday, 13 November 2016.

File photo of people wait in a long queue to exchange their old Rs 500 and Rs 1000 notes outside Reserve Bank of India in New Delhi on Sunday, 13 November 2016.

The complaints regarding some ATMs running dry are still trickling in, as indicated in the following tweet by Shaktikanta Das today, who also urged the general public not to overdraw money.

“Complaints of cash out in ATMs being addressed. Request everyone to draw the cash they actually require. Overdrawal by some deprives others,” he said in a tweet.

The issue of demonetisation has dominated the Winter session of Parliament last year with fierce protest by the Opposition against the government move. They also cited the reports that more than 100 lost their lives standing in queues of banks and the ATMs.

On its part, the Modi government has strongly defended the move as the one to fight graft, menace of counterfeit currency and terrorism along with Black Money. The government has also underlined that the decision to demonetise currency notes will benefit the economy in longer run, the claim which has since been refuted by the Opposition.

Another challenge arising out of the move was on the count of how quickly the scrapped currency notes could be replaced. Nearly 85% of over 17 lakh crore liquidity in the circulation was rendered illegal after the note ban.