Rising prices are eating away the value of money, literally. The government is phasing out or printing fewer low-denomination currency notes, and printing more notes of higher denomination such as the . 1,000 note.
For the first time, India will print as many new . 1,000 denominated notes as . 500 ones in 2011-12. In value terms, this will be the first time . 1,000 notes will account for more money printed than . 500 notes, which were the mainstay of high-value cash transactions for some time.
Thanks to inflation, the . 500 note is losing its position of pre-eminence among the currency notes printed by the Reserve Bank of India.
Eleven years after the . 1,000 note was introduced in October 2000, the RBI has ordered 2,000 million new amber-red . 1,000 notes. This is double the number ordered last year. The order for olive-and-yellow . 500 notes, which came into circulation in 1987, has been halved to 2,000 million from last year.
In value terms, the new . 1,000 notes will add up to . 2 lakh crore, and . 1 lakh crore of . 500 notes. “ATMs can now dispense up to . 40,000 in one go. The . 1,000 notes are more convenient to dispense, fueling greater demand,” said a finance ministry official.
For the first time, India will print as many new . 1,000 denominated notes as . 500 ones in 2011-12. In value terms, this will be the first time . 1,000 notes will account for more money printed than . 500 notes, which were the mainstay of high-value cash transactions for some time.
Thanks to inflation, the . 500 note is losing its position of pre-eminence among the currency notes printed by the Reserve Bank of India.
Eleven years after the . 1,000 note was introduced in October 2000, the RBI has ordered 2,000 million new amber-red . 1,000 notes. This is double the number ordered last year. The order for olive-and-yellow . 500 notes, which came into circulation in 1987, has been halved to 2,000 million from last year.
In value terms, the new . 1,000 notes will add up to . 2 lakh crore, and . 1 lakh crore of . 500 notes. “ATMs can now dispense up to . 40,000 in one go. The . 1,000 notes are more convenient to dispense, fueling greater demand,” said a finance ministry official.
No comments:
Post a Comment