The Reserve Bank of India will soon start circulating new Rs 100 notes, it said in a notification on Friday. The apex bank added that old Rs 100 notes will continue to remain legal tender.
The new currency notes will be similar to those from the 2005 Mahatma Gandhi series and will have 2017 as the year of printing. They will also bear the signature of the current RBI Governor Urjit Patel. They will also have ascending numerals in the number panels, bleed lines, and enlarged identification mark on the obverse, the bank said.
There was a massive shortage of Rs 100 notes after the sudden demonetisation of Rs 500 and Rs 1,000 notes on November 8, 2016. The high currency denominations had made up 86% of the country’s liquidity at the time it was rendered illegal tender. The Centre and RBI had only issued new Rs 2,000 notes immediately after demonetisation, which had led to an enormous cash crunch.
The decision to demonetise the notes was met by criticism from several fronts, including many economists. The central government said it was done to clear out black money and counterfeit currency in the country.
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