New Delhi: The government’s surprise announcement on Tuesday that it would scrap Rs500 and Rs1,000 currency notes was followed by the news that it would introduce newly designed high-value notes with additional security features. While new Rs500 and Rs2,000 notes are being issued, redesigned Rs1,000 notes may be also be on their way.
Economic affairs secretary Shaktikanta Das said on Thursday that the government has no plans to withdraw Rs100 and lower denomination notes.
However, there seems to be a strong case for redesigning Rs100 currency notes as well, if one examines Reserve Bank of India (RBI) data on counterfeit currency.
RBI data shows that there has been a surge in counterfeit currency notes of Rs100 denomination in the last four years. Counterfeit currency notes of Rs100 denomination increased from around 20% in 2012-13 to around 35% in 2015-16, according to central bank figures.
However, though counterfeit currency notes of Rs500 and Rs1,000 denominations have increased at a lower rate compared with Rs100 in the last four years, their combined value is far greater.