Rs 1,000 Currency Notes Will Not Be Re-introduced, Finance Ministry Says

The RBI has already announced that it would be ramping up the supply of Rs 200 notes.

The optimal system of denominations of currency (coins and notes), the RBI had said, is one that would minimise the number of denominations and concurrently increase the probability of proffering exact change.

“So, what should be the optimal mix of currency denominations? Many countries have opted to use a near variation of the Renard Series, i.e., 1:2 or 1:2.5 ratio between adjacent denominations of currency, which means that the denomination should be twice or two and half times of its preceding denomination,” the central bank had said.

Such a ratio allows exchange of value ordinarily in a maximum of three denominations, it added.

Last week, Finance Minister Arun Jaitley had said that the government was not considering banning Rs 2,000 notes.

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