After new Rs 500 and Rs 2000 notes, Reserve Bank of India will soon print new notes of Rs 50 and Rs 20 notes, however, the old notes of small denominations will also remain a legal tender.
New notes of Rs 50 and Rs 20 to be printed in Mahatma Gandhi 2005 series
“The Reserve Bank of India will shortly issue Rs 20 denomination banknotes in the Mahatma Gandhi series-2005, with inset letter ‘L’ in both the number panels, bearing signature of Dr Urjit R Patel Governor, Reserve Bank of India, and the year of printing ‘2016’ printed on the reverse of the banknote”, said RBI in a statement.
“The design and security features of these notes will be similar to the Rs 50 notes, with the ascending front of numerals in both the number panels without the intaglio print as in the earlier Mahatma Gandhi series 2005“, it further said.
The font will be in ascending order for the number panels and the new notes would not have the intaglio print.
The small denomination notes are used for daily payments for which the high denomination notes are rarely used. As per the RBI reports, Rs 20 notes constitute 5.4 percent and Rs 50 notes constitute 4.3 percent of the total currency in circulation till March 2016.
Owing to the demonetisation of Rs 500 and Rs 1000 old notes, there has been a cash crunch in the economy and the people have been making more use of the small denomination currency to make payments. So, the move to print more of small denomination notes is deemed to greatly ease the cash crunch in the economy.