Demonetisation | The story so far

Notes were printed only after Sept. 4

The new Rs. 2,000 and Rs. 500 notes were sent for printing only after the Reserve Bank of India (RBI) Governor Urjit Patel took charge on September 4. Though the decision was taken six months ago, the government waited for the new Governor to take over, and the plates were signed soon after by him.

A senior government official said this explained the signature of Urjit Patel on the new currency notes as it takes at least two months to switch over to new design plates. The initial plan was to phase out the existing banknotes in circulation.

“The process of changing the currency notes had been long overdue. It had been pending since 2011. When the NDA government came to power, the discussions began. But the entire process started moving in a decisive direction since May this year, when Prime Minister Narendra Modi gave the go-ahead. There is rationing of cash as printing started only two months ago as the machines had to be attuned to the new plates and security features,” said a senior official.

As reported by The Hindu earlier, the magenta Rs. 2,000 notes contain the same “covert” security features as the old Rs. 500 and Rs. 1000 notes.

Changing the security features is a huge exercise and takes anywhere between five and six years. The last time such an exercise was done was in 2005 when currency notes of all denominations with new security features were introduced.

There are three types of security features in a note: overt, which can de detected by the naked eye; semi-covert, detected by a hand-held machine; and covert, visible only in big machines installed at banks.

The government has said that the introduction of new notes would check counterfeiting. According to investigations done by the National Investigation Agency (NIA), much of the fake currency in circulation in India was printed in the government press of Pakistan.

“Pakistan was able to copy the overt security features of old notes, which is mostly the design part and was pushing in counterfeit notes in India. Though the covert security features in the new notes have not been upgraded, our investigations show that Pakistan was never able to crack the old ones either,” said a Home Ministry official.

Another official said it would take years to counterfeit the new notes. In normal circumstances any country changes its notes every 7-8 years with additional security features to check counterfeiting, he added.

There was no major change in the Rs. 1,000 notes introduced in 2000, while changes in the Rs. 500 notes, launched in 1987, were done more than a decade ago.

Our code of editorial values

Related Topics
This article is closed for comments.
Please Email the Editor

Printable version | Jan 25, 2022 11:41:33 PM |

In This Package
Why no category for those who could not exchange banned notes by Dec. 30 was created, SC asks Centre
Will not buckle under pressure to extend banned notes deposit period: Centre
Why you went back on promise to extend cut-off date to deposit old notes, SC asks govt.
HC dismisses plea to declare ₹2,000 note invalid
Awaiting judgment on demonetisation
SC dismisses plea seeking to lift '100 p.c. tax exemption' granted to political parties
What happens to old notes tied up in court cases, asks advocate
Cash crunch till January, says govt.
Centre disputes RBI’s deposit count
Demonetisation a visionary step: Shah
Nationwide black money chase continues
Curbing black money is my agenda, says PM
Demonetisation a ‘calamity’, says Chidambaram
Govt. to hold lucky draws to boost digital transactions
ED files laundering plaints with CBI
The panel headed by the IT Secretary will recommend measures to address risks.
Panel to study security risks amid Centre’s digital push
Jan Dhan account holders can withdraw only up to Rs. 10,000 a month
Submit your Nov. 8-Dec. 31 bank transactions, Modi tells Ministers, BJP lawmakers
Mixed response to nationwide protest call against demonetisation
Modi urges country to become a cashless society
Modi thanks people for their ‘historic participation’ in demonetisation survey
Mamata hits Delhi streets, lashes out at Modi
Economic Affairs Secretary Shaktikanta Das.
Govt. shifts focus on steps to boost digital transactions
Cartoonscape - November 25, 2016
Cartoonscape - November 23, 2016
Cartoonscape - November 22, 2016
Cartoonscape - November 21, 2016
Cartoonscape - November 18, 2016
Cartoonscape - November 14, 2016
Cartoonscape - November 12, 2016
Cartoonscape - November 11, 2016
Cartoonscape — November 10, 2016
It's the beginning of a 'long, deep and constant' battle against black money: Modi
The warp and woof of demonetisation
High Court to hear plea against demonetisation
Demonetisation may cost them dear
Sri Lanka’s demonetisation pinched only the rich
SC fears riots, says people are frantic due to demonetisation
Few fuel stations dispense currency
Small-time builders take a big hit
Cash furore brings House to a halt again
Property registrations plummet 35%
Demonetisation issue brings Parliament to a halt
Cash cut mints new political ties
Demonetisation disrupts rural and agrarian economy in Gujarat
You are reading
Notes were printed only after Sept. 4
Now, Gates has ‘no opinion’ on demonetisation
Govt seeks SC stay of demonetisation cases in High Courts
EC writes to Central govt. on indelible ink issue
Something more coming: Venkaiah
KCR to meet Modi on demonetisation
Parliament Proceedings, November 17, 2016
Next Story