Backing the government's decision to demonetize Rs. 500 and 1,000 currency notes, Economic Affairs Secretary Shaktikanta Das on Thursday said that there was a need to revive the currency as the value of rupee has depreciated after 2001, adding notes of Rs. 1,000 will be introduced in due course.
Throwing light on the other logical reasons behind the government deciding to infuse the new currency, Das said: "Firstly, the logistical reason behind the very decision was to make it convenient for the citizens to exchange or deposit the old notes and get the value out of the new notes."
"Secondly, it was in the year 2000-2001 when the Rs. 1000 notes were introduced. Now, after 15 years there was a need to revive the currency as the value of rupee has depreciated," he added.
Das further said the RBI is going to closely monitor and regulate the release of Rs. 2000 note, adding the central bank will in due course infuse notes of Rs. 1000 in the market with a new design, dimension and color combination, which will look different from the old ones.
The Economic Affairs Secretary further said all denomination of notes will be reintroduced with new design and new features in the coming months.
"The legal tender status of the existing Rs. 100, 50 notes and other denomination notes will continue to be a legal tender. The new currency will be infused in from time to time as and when the new series notes are introduced," he added.
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