RBI issues new Rs 500 notes with inset letter A, old notes to remain valid

This was in continuation of Rs 500 banknotes in Mahatma Gandhi (new) series notified on Nov 8, 2016

The Reserve Bank of India (RBI) announced on Tuesday that it has issued Rs 500 denomination notes with inset letter A. However, the old notes, which were introduced after Prime Narendra Modi’s demonetisation drive in November 2016 will continue to remain the legal tender.

The central bank, in a statement, said that this was in continuation of the issue of Rs 500 denomination banknotes in Mahatma Gandhi (new) series, which were notified on November 8, 2016. From time to time, the bank introduces new series of legal tender. 

"In continuation of issuing of Rs 500 denomination banknotes in Mahatma Gandhi (new) series from time to time which are currently legal tender, a new batch of banknotes with inset letter "A" in both the number panels, bearing the signature of Urjit R Patel, Governor, Reserve Bank of India; with the year of printing '2017' on the reverse, are being issued," an official statement said.

This comes after RBI Deputy Governor N S Vishwanathan said in March that the central bank did not have any plan to introduce new denomination currencies as it wanted to encourage cashless transactions in the country, according to IANS.

Arun Ram Meghwal, minister of state for finance, said that the government was not planning to print Rs 5,000 and Rs 10,000 currency notes, Financial Express reported.

The RBI had announced on December 16, 2016 that it would issue Rs 500 notes with the inset letter ‘E’ in both the number panels, the report added. 

Additionally, the central bank said that the notes will bear Swachh Bharat logo on the backside of the banknote and that some of the notes would carry an additional character in the space between the prefix and the number of the banknote.