1000 Rupee Note: The discontinuance of Rs 1000 notes proceeded with the demonetization of November 2016, and conversely, the Rs 2000 notes were introduced in their place. The chatter about the impending return of the Rs 1000 note seems to have grown tremendously in recent times. The discussion is creating a lot of buzz among the general public and among the economic pundits. Let’s get the chronicles of the return of the Rs 1000 note and the possible consequences.
Why The Discussion Of The Return Of The Rs 1000 Note?
With the advent of demonetization in 2016, Rs 500 old notes and Rs 1000 new notes were rendered obsolete. Primarily it was devised to curb black money and counterfeit notes. Whether the Rs 2000 note is really a practical replacement for the Rs 1000 note has emerged as a subject for debate. People hardly find it easy to transact in Rs 2000 notes which are sort of unreasonably out of shape; Rs 2000 notes have failed to really play an effective role in halting black money counterfeiting.
Possible Benefits Of Rs 1000 Notes
- A good choice: The Rs 1000 note is a better option since it minimizes large transactions for Rs 2000; thus giving change will be easy.
- Controlling black money: The Rs 1000 note should be withdrawn because it is less than the Rs 2000 note in denomination; therefore, its imposition will restrict the flow of black money.
- Reduction in counterfeit currency: Superior security features can be used in the Rs 1000 note, thereby minimizing the problems of counterfeit notes.
Possible Drawbacks
Nevertheless, there are some hurdles regarding the retraction of Rs 1000 notes. First, new notes will have to be printed by the Reserve Bank of India (RBI), which will take time and resources. Secondly, there might be an increase in currency circulation, which might have adverse effects on the economy.
The offer to revive the Rs 1000 note has fueled yet another debate regarding the currency system. If revived, this note will be user-friendly for the common man and can help in washing out black money from the economy. Yet, this will involve careful planning from the government as well as from the RBI. For now, it remains a question whether the Rs 1000 note will come back in our wallets or never.
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