Reserve Bank of India to Issue New Batch of Rs 20 Notes Soon


Mumbai, July 20: The Reserve Bank of India is all set to release a new batch of currency notes of denomination of Rs 20 under the Mahatma Gandhi series-2005. The new notes of Rs 20 will be released with the inset letter ‘S’ in both the number panels, news agency ANI reported.

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According to a report, another major change that will be seen in the new currency notes will also carry a signature of RBI Governor Urjit Patel, which the older Rs 20 notes did not have. However, the design of the new Rs 20 notes will not change in any way and will remain the same as the ones released in September 2016 with the inset letter ‘R’. The RBI also said that the old Rs 20 notes in circulation will continue as a legal tender.

Earlier this month an image of a note of Rs 200 denomination was being widely shared on social media, even though there was no official confirmation about its authenticity came from the responsible authorities. Some report suggests that the printing process had begun and the central banks would soon issue the new notes of Rs 20.

There were reports that the RBI is looking to issue the Rs 200 notes to make daily transactions easier for people. Last month, the RBI introduced a new series of the recently introduced Rs 500 notes.

“In continuation of issuing of Rs 500 denomination notes in Mahatma Gandhi (new) series from time to time which are currently legal tender, a new batch of banknotes with inset letter “A” in both the number panels, bearing the signature of RBI Governor Dr Urjit R Patel Governor; with the year of printing “2017” on the reverse, are being issued,” RBI said in a statement.

Source

Budget 2017: Cash No Longer Valid For Payments Above Rs 3 Lakh


Digital payments in India are set to get a big boost with Finance Minister Arun Jaitley, in his Budget 2017 speech, announcing that cash will be no longer allowed for transactions of more than Rs 3 lakh.

Budget 2017 year on cube with pencil and clockThe government also proposed a new payments regulator to be set up within the Reserve Bank of India. Jaitley said the government is also working to quickly roll out the recommendations put forward by a committee of chief ministers on digital transactions.
Arun Jaitley, Finance Minister In His Budget Speech To begin with, it is proposed to create a payment regulatory board in the Reserve Bank of India by replacing the existing board of regulations and supervision of payment systems. As we move faster to the path of digital and cheque payments, it is necessary to ensure that payees of dishonoured cheques are able to realise their payments. Therefore, the government is considering the option of amending the Negotiable Instruments Act suitably.

While the government brings about structural changes in payment regulation, it is also promoting digital transactions by proposing and potentially mandating petrol pumps, fertiliser depots, hospitals and colleges to have the option of accepting digital payments, including from the BHIM app.

Jaitley also announced two new schemes targeted at increasing the number of digital transactions through its flagship BHIM app — a referral bonus scheme for individuals and a cash-back scheme for merchants.

Budget 2017 set a target of 2,500 crore digital transactions in the upcoming financial year through various modes such as UPI, Aadhaar Pay and plastic cards.

While the government is yet to roll out Aadhaa- based payment systems — which come with their set of safety concerns — Jaitley said that 20 lakh Aadhaar enabled point-of-sale machines will be rolled out by September 2017.

According to Reserve Bank of India data, the value of debit card transactions at point of sale (PoS) terminals has grown by over 63 percent between 2012 and 2015. Credit card transactions at PoS terminals has grown 54 percent.

However, estimates suggest that 90% of transactions by value are still being carried out in cash in the country. This is set to change with the government’s latest push for digital payments post demonetisation.

In its attempt to boost use of cards, wallets and unified payments interface, the government has announced that banks will deploy 10 lakh additional PoS machines by March 2017 which will be complemented by the launch of Aadhaar Pay, which obviates the need of having a phone, debit card or passwords.

Bloomberg Quint

Demonetisation: 10 big revelations from RBI’s note to Parliament panel


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The Reserve Bank of India (RBI) in its reply to the Parliament panel on demonetization has said the decision to ban Rs 500 and Rs 1000 notes was a joint decision between the central bank and the government.
In details available exclusively with India Today TV, the RBI also said it considered printing Rs 5000 and Rs 10,000 notes.

HERE ARE THE 10 BIG REVELATIONS

  1. RBI says demonetization of high-value notes was a ‘joint decision’ between the government and the central bank.
  2. Demonetization’s primary objective was to crack down on counterfeit notes.
  3. RBI mooted introducing 5000 & 10,000 rupee notes as early as October, 2014 – a few months after Modi came to power.
  4. RBI said the Rs 2000 note was chosen in view of the inflation and to manage currency logistics.
  5. On why Rs 2000 note was not introduced in a phased manner, the RBI said the new design will ‘catch the fancy of the public’.
  6. Asked when the printing of new currency notes started, the bank said: June 2016.
  7. On what led to the final decision on demonetization, the RBI said new currency had reached critical minimum stock.
  8. The RBI said it had weighed in the cash crisis and understood that it might not be possible to replace notes fully.
  9. The RBI considered digital payment option to take a part of the cash crunch load.
  10. The RBI claims demonetization had no impact on its balance sheet.

Source: Yahoo