RBI to issue new Rs 20 and 50 notes; old currency notes still valid

The year '2016' printed on the reverse of the banknotes.

The Reserve Bank of India will shortly issue new Rs 20 and Rs 50 notes in the Mahatma Gandhi Series-2005. These notes will bear the signature of RBI Governor Urjit R Patel.Old banknotes of the two denominations will continue to be legal tender.

The year '2016' will be printed on the reverse of the banknotes.

"The Reserve Bank of India will shortly issue ₹ 50 denomination banknotes in the Mahatma Gandhi Series-2005, without inset letter in both the number panels, bearing signature of Dr. Urjit R Patel, Governor, Reserve Bank of India, and the year of printing '2016' printed on the reverse of the banknote,"said RBI in a statement.

On the Rs 20 note, it said " Reserve Bank of India will shortly issue ₹ 20 denomination banknotes in the Mahatma Gandhi Series-2005, with inset letter ‘L’ in both the number panels."

The RBI move comes after Prime Minister Narendra Modi's  decision last month to scrap 500 rupee and 1,000 rupee banknotes as part of a crackdown on tax dodgers and counterfeiters has caused a currency crunch in a country where most people are paid in cash and buy what they need with cash.

With a small stock of smaller notes available and new bills of 500 and 2,000 rupee in short supply, Indians are being forced to stand in queues outside banks and cash machines to change their old notes.