Economic Affairs Secretary, Shaktikanta Das, has confirmed that the government has no plans to re-introduce the 1,000 rupee note post demonetization. Instead, the focus will now be on increasing the supply of 500 rupee and other lower denomination notes to address the prevailing cash crunch.
Recently, reports surfaced that RBI and the Centre were planning to introduce a new series of 1,000 rupee notes. Furthermore, the reports also claimed that the new 1,000 rupee notes were ready for circulation in January this year, but the government decided to focus on pushing the new 500 rupee notes first.
Das put these rumors to bed by tweeting that they have no plans of re-introducing the 1,000 rupee notes.
Finance Minister, Arun Jaitley, has always denied the re-introduction of the 1,000 rupee currency. He has also stated that the remonetisation situation with respect to the discontinued 500 rupee and 1,000 rupee notes is now “almost normal” and the RBI (Reserve Bank of India) is monitoring the currency supply on a day-to-day basis.
Demonetization of the old 500 and 1,000 rupee notes was first announced by Prime Minister Narendra Modi on November 8, 2016. The intention behind this initiative was to check the circulation of black money and counterfeit notes as well as terror financing in the country.
Demonetization adversely impacted cash flow wherein 86% of Rs.15.44 lakh crore had to be abruptly taken out of circulation. The RBI has also placed withdrawal restrictions as a way of managing the circulation of the new currency notes of 500 and 2,000 rupees.
The RBI has slowly started relaxing these withdrawal restrictions. On February 20, the cash withdrawal limit from savings bank accounts increased to Rs.50,000 per week. March 13 onwards, there will be no cash withdrawal restrictions on savings bank accounts.