Prior to the Election, notes of 500 and 2000 rupees are again ready to change. Let’s find out what’s the matter. Now, you can see purple color new notes of Rs.100 in the market. At some places, ATM is also dispensing these vibrant purple color notes. At the same time, there is an information that RBI is going to bring a new note of Rs.100 again. Now, the news is that the remaining notes in your pocket can be changed before the Lok Sabha Elections next year. Yes, notes of 200, 500 and 2000 rupees will also be changed.
But the question is why? What is the need of introducing new notes again, when already we have newest currencies in the circulation?
Prior to the Election, notes of 500 and 2000 rupees are again ready to change, Why?
Changing the note does not mean that the existing notes will be closed when they arrive. Rather, both types of notes will be present in the market. However, if the trial of the new feature becomes successful, the existing new notes will be gradually reduced in the system.
Actually, the Reserve Bank of India is planning to introduce the newest notes again and roll out those to the market. This time the new notes will have a coating of varnish. This will increase the age of the notes. In RBI’s annual report 2017-18, it was proposed that there is a need to change the existing banknotes; and, introduce the new ones with special features. However, it will just be a trial to begin with. If the trial goes successful, then all the existing notes will be replaced with the newest notes with a coat of varnish. However, there is no official confirmation from the RBI so far.
This kind of trial has already been adopted in many other countries.
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How the new notes will be different from the existing notes?
The new notes containing varnish will have the ability to exist twice than the existing notes. However, the design of the new notes will be exactly same as the existing notes. Also, these notes will follow the Gandhi series. Just to enhance their shelf life, notes will have a coat of varnish.
Already was in RBI’s Agenda:
Proposal of bringing varnish coated currency notes was already there in RBI’s agenda. It has been mentioned in the Reserve Bank of India’s 2016-17 report’s Currency Management Chapter. In addition to the Procurement of Currency Verification and Processing System (CVPS) / Shredding and Briquetting Systems (SBS), issuing of new series of banknotes was also there. Also, the launch of Varnish coated currency notes is also a part of the agenda.
When will Varnish Coated Notes will be launched?
Just before the Elections, notes of 500 and 2000 rupees are again ready to change. According to sources, these notes can be changed right before the next year’s Lok Sabha Elections. However, for the official confirmation, will have to wait for the announcement from RBI. But, sources say that the RBI has done all the preparation.
Why prior to Election, notes of 500 and 2000 Rupees are again Ready to Change?
It’s a well known fact that during elections, a cash shortage situation arises. During this period, the ATMs and the Banks have a cash shortage. Cash also disappears from the market during the elections. According to a recent RBI report, cash shortage was detected during the last elections as well. Hence, RBI is planning to take advantage of this situation and without creating much chaos the varnish coated ew notes will be launched in the market for the trail.