RBI to issue new one rupee notes as legal tender
Mumbai: After a gap of about two decades, the RBI will again put in circulation rupee one notes soon.
Printing of one rupee note was discontinued about 20 years ago.
“These currency notes are legal tender as provided in the Coinage Act 2011. The existing currency notes in this denomination in circulation will also continue to be a legal tender,” the Reserve Bank of India said in release.
At present, one rupee coins are minted.
The new Re 1 note will have the words “Government of India” in Hindi and English on top with the bilingual signature of finance secretary Ratan P Watal on it. Upfront, the note, in faded shades of pink and green, will have a floral design upon which ‘Ek rupaiya’ will be printed. On the back side will be an imprint of Sagar Samrat, the country’s oil exploration platform. Beside the imprint, fifteen Indian languages will render the note’s value.
An RBI official said the note will be a legal tender as provided by the Coinage Act, 2011 and the existing currency notes in this denomination will continue to be legal tender.
Shopkeepers in Chennai welcomed the move. “Customers get upset when we give them chocolates and not change. The new note, if available, will solve that problem,” said Arun Kumar a tea shop vendor in Nungambakkam.
Traders say coins supplied by the RBI are not adequate and there is always a scarcity of Rs 2 and Rs 5 coins. P Srinath, a grocer from Valluvar Kottam, said, “In my business I need coins amounting to at least Rs 15,000 per month, but the bank provides me with Rs 3,000. We have to depend on agents who sell coins at 10% commission.” He said agents can be seen buying coins from beggars near Chetpet railway station every morning.
Those frequenting shops and restaurants are often left with chocolates and chewing gums in their pockets instead of small change which are always scare in the market. To contain this shortfall, the Reserve Bank of India (RBI) is set to introduce a new Re 1 note.