The Hindu : Business : New Rs. 500, Rs. 1,000 notes to be issued

Online edition of India's National Newspaper
Saturday, Dec 18, 2004

Business

Business

New Rs. 500, Rs. 1,000 notes to be issued

By Our Special Correspondent

KOLKATA, DEC. 17. The Reserve Bank of India has decided to issue new design notes of Rs. 500 and Rs. 1,000 denominations in 2005, the RBI Executive Director (Currency Management), P. K. Biswas, said. These notes would have additional security features.

Addressing a press conference here, he said these notes would incorporate new security features. Admitting that one could not stop faking through these measures, he said: "The aim is to stay ahead of counterfeiters.'' Around April 2005 the central bank also proposed to introduce new design coins as well as new security features for notes of existing denominations.

To a question on fake notes from ATMs, he said the person receiving such notes should contact their banks and then the RBI in case the banks refused to satisfy them. He said banks should upgrade their equipment to detect fake currency.

Pointing out that the currency management was all about supply chain management, Mr. Biswas said the RBI was planning to get its currency management certified by ISO, for meeting the public's expectation on issues such as exchange of coins and soiled and damaged notes.''

The entire system needs strategic planning like demand forecasting,'' he said.

On the issue of soiled notes, he said over the last two years the RBI had collected and destroyed 24 billion pieces of soiled notes.

This was in pursuance of its clean note policy. The destruction was being done through shredding, which was more environment friendly a practice compared to burning.

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