RBI to introduce new Rs 20, Rs 50 notes. What happens to the old ones?

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 the signature of Governor Urjit R Patel. According to an RBI press release, the year of printing ‘2016’ will be printed on the reverse of the banknote. The same holds true for Rs 20 notes also. The press release also informs design and security features of these banknotes will be similar to the existing banknotes of ₹ 50 and Rs 20 denomination.  All the banknotes in the denomination of ₹ 50 and Rs 20 issued by the Bank in the past will continue to be legal tender.

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The move comes as we inch closer to completing a month after the demonetisation policy announced by Prime Minister Narendra Modi in which Rs 500 and Rs 1000 notes were discontinued. The move has led to a crunch of lower denomination notes in the market and resulted in hardship among people. The new Rs 2000 note hasn’t proved to be too much of a relief because getting change for the high denomination note has become an every-day battle. The Prime Minister had sought 50 days to resolve the hardships emanating out of the demonetisation move.

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