January 22, 2021: According to the apex body of financial institutions, the Reserve Bank of India (RBI) has plans to withdraw the circulation of Rs 100 notes, along with Rs 10 and Rs 5 currency notes by March or April.
Withdrawal of circulation of Rs 100 notes: What has RBI to say?
Adding that banks should make people aware of the rumours that are being spread about the coin’s validity, the AGM said that the bank should find ways to push the Rs 10 coin among the public.
In a statement released on its website then, the RBI said: “To achieve the optimal system of currency that would minimise the number of denominations while increasing the probability of proffering exact change, especially at the lower end of denominations, there is a logical need to introduce the missing denomination of Rs 200, which will make the present currency system more efficient.
“Provision of the new denomination, therefore, would facilitate exchange, particularly for the common man who deals with denominations at the lower end,” it added.
In November 2016, India had banned the old Rs 500 and Rs 1,000 currency notes in an attempt to flush out undeclared wealth.
The two denominations together accounted for 86 per cent of the currency in circulation at that time and their overnight demonetisation created chaos across the country especially because the supply of new notes took time.
In 2019, RBI had issued new Rs 100 notes in lavender colour having motif of ‘Rani ki vav’ – a stepwell located on the banks of Saraswati river in Gujarat’s Patan.
“All Rs 100 banknotes issued earlier will also continue to be legal tender,” the apex bank said while announcing the issue of the new Rs 100 notes.
Besides, RBI also introduced a Rs 200 note in addition to currency note in denomination of Rs 2,000 after the demonetisation on November 8, 2016.
In 2019, responding to an RTI query, Reserve Bank of India (RBI) conveyed that the Central Bank has halted the printing of high-value banknotes. This provides an explanation for the fewer Rs 2,000 notes being sourced by ATMs.
Withdrawal of circulation of Rs 100 notes from the market
The old currency notes of Rs 100, Rs 10 and Rs 5 will eventually go out of circulation as RBI plans to withdraw them by March-April.
Even after 15 years after the introduction of Rs 10 coin, traders and businessmen have not accepted the coins which has become a problem for banks and RBI.
It is shocking that Rs 10 coins have been piled up in the chest of banks.