Exclusive: New 1,000 note in the offing?
New Delhi: In less than three months of the demonetisation drive, the Narendra Modi government is preparing to put into circulation a new Rs 1,000 note.
Sources told BTVi the new Rs 1,000 note is likely to be back in circulation either from January 26 or after the Budget scheduled on February 1.
"The specifications and security features of the new Rs 1,000 note have been finalised," said an official privy to the development.
The new Rs 1,000 notes will slowly replace the Rs 2,000 notes, the official added.
Incidentally, the Modi government on November 8 scrapped the old Rs 500 and Rs 1,000 notes to fight black money, corruption and terror funding.
The relaunch of the Rs 1,000 note is based on public feedback on the difficulty to get change of the new Rs 2,000 notes.
Experts also warn that the Rs 2,000 note will facilitate graft and black money generation.
The proposal to demonestise Rs 500 and Rs 1,000 notes led to a mad scramble at ATMs and banks as close to 86 per cent of the Rs 17.6 lakh crore of currency were in the two high value denomination.
The note ban has hit the cash-dependent small businesses, traders and daily wage labourers the most while Indian households crimped consumption due to the cash crunch during November and December.
Terming the implementation of the historic step as a "monumental mismanagement", former Prime Minister Manmohan Singh said in Parliament the demonetisation drive will scalp economic growth by 1-2 percentage points.
In a scathing attack on India's central bank and the government for trying to demonetise 86 per cent of currency in circulation in 50 days, former finance minister P Chidambaram told BTVi that neither Prime Minister Narendra Modi nor Reserve Bank of India governor Urjit Patel have been able to justify the move.
The senior Congress leader said the decision to scrap notes of Rs 500 and Rs 1,000 denomination was an "ill-conceived move, not thought through, very badly planned and terribly implemented" leading to hardship across the Indian economy including in the farm sector as well as for casual labourers.
The Rajya Sabha member pointed out that the demonetisation agenda note taken up by the RBI board on November 8 did not mention any numbers.
The decision to print Rs 2,000 notes was out of touch with reality, he added.