Crispy Rs 5,000 and Rs 10,000 notes may make a comeback into Indians wallets soon.
As per reports, with rising prices eroding the value of money and to curb the cost of printing currency in the country, the Reserve Bank of India is likely to bring back the Rs 5,000 amd Rs 10,000 rupee notes into the economy.
Rs 10,000 notes were in circulation before independence but were demonetised in January 1946. 10,000 notes were put in circulation yet again in 1954 along with Rs 5,000, but were demonitised again in 1978.
The Government, on the advice of the Reserve Bank, decides on the various denominations. The Reserve Bank also co-ordinates with the Government in the designing of bank notes, including the security features.
The Reserve Bank estimates the quantity of notes that are likely to be needed denomination-wise and places the indent with the various presses through the Government of India.
The Reserve Bank derives its role in currency management on the basis of the Reserve Bank of India Act, 1934.