We can’t deny that Prime Minister Modi’s sudden move to demonetise the old Rs. 500 and Rs. 1,000 currency notes took many of us by surprise. On the evening of 8th November 2016, in a televised address to the nation, Narendra Modi announced that with effect from midnight, the old Rs. 500 and Rs. 1,000 notes would no longer be legal tender.
It was further announced that the Reserve Bank of India was going to release new currency notes of Rs. 500 denomination. The Reserve Bank also announced the introduction of a new denomination to the Indian currency system with the addition of a Rs. 2,000 note, effectively rendering the Rs, 1,000 currency note obsolete.
Additional Reading: Rs. 500 And Rs. 1,000 No Longer Legal Tender
New notes will have several new features
All banks across the country have begun issuing the new currency notes to the general public from 10th November 2016. The new notes have various new elements and security features.
New notes with enhanced security
The new Rs. 500 and Rs. 2,000 currency notes have a see-through register with the denomination of the note visible when you hold the note against the light. If you hold the notes at a 45-degree angle at eye level, there is also a latent image showing the denomination of the note, either Rs. 500 or Rs. 2,000.
The new notes have a new script, and the placement of the guarantee clause, the governor’s signature, the Promise clause and the RBI emblem are all now aligned to the right, with the portrait of Mahatma Gandhi on the left beside it.
Swacch Bharat logo
A new addition to the note is the Swacch Bharat logo on the reverse of the currency notes.
Colour changing ink
On the front of the note, the denomination is printed in colour changing ink. On tilting the note, the colour changes from green to blue.
New theme and text
On the front of the new notes, an image of the Ashoka Pillar will feature towards the bottom right corner and the theme will be heritage sites. The denomination is also printed in Devanagari script, which is certainly a first.
The Rs. 500 note comes in a stone-grey colour and will depict an image of the Red Fort on the reverse.
The Rs. 2,000 currency note
The brand new Rs. 2,000 note comes in a new magenta colour. Some are calling the note ‘a pink Gandhi’. The highest denomination to come into circulation since 1934, after the Rs. 10,000 currency note was demonetised, the Rs. 2,000 note celebrates the nation’s exploration of interplanetary space. An image of ISRO’s ‘Mangalyaan’ will be featured on the reverse of the note.
The security thread on the note will depict three words printed on it: ‘RBI’, ‘2,000’ and ‘Bharat’. The thread changes colour from green to blue when tilted.
No GPS chip in the Rs. 2,000 note
Recently, rumours have been floating about stating that the new Rs. 2,000 note will have a GPS tracking chip embedded in it. However, this information has been found to be untrue as confirmed by the country’s Finance Minister, Arun Jaitley.
New notes are blind-friendly
To enable the visually-challenged to identify the new currency, the notes will feature the image of Mahatma Gandhi in raised print on the front. There will be a black dot above the Ashoka Pillar emblem on the right, with five bleed lines on the left and right in raised print for the Rs. 500 note and seven bleed lines on the left and right in raised print for the Rs. 2,000 note.
New shapes to identify notes
The new Rs. 500 note has a circular shape above the Ashoka Pillar on the front, while the Rs. 2,000 note has a rectangular shape above the Ashoka Pillar on the front to help identify it.
Why were the new notes introduced?
The new currency notes were introduced with enhanced security features in a sweeping bid to curb the rampant circulation of counterfeit notes in the market and to clamp down on black money. The RBI governor confirmed that this move was not the result of a security breach.
Additional Reading: How GST Will Fight Black Money Generation
ATMs functional from 11th November 2016
After a two-day hiatus, ATMs across the country have been reopened to allow people to withdraw the new currency notes. Remember, to cater to the high demand for the notes, there have been specific withdrawal limits imposed by the RBI.
You can withdraw up to Rs. 2,000 per day per card between 10th November and 18th November. From 19th November onwards, you can withdraw up to Rs. 4,000 per day per card.
Additional Reading: ATM Usage And You
Banks to remain open on 12th and 13th November
If you need to visit the bank to exchange or deposit your old currency notes of Rs. 500 and Rs. 1,000 denominations, this will be welcome news to you. All banks in the country will remain open on 12th and 13th November 2016 to allow people to make deposits and exchange their old currency notes.
Additional Reading: Currency Demonetization To Impact The Real Estate Sector
Have you got the new currency notes yet? While the new currency notes sound interesting, cashless transactions are the way to go! Jump aboard the paperless bandwagon with a Credit Card.