Government to phase out Re 1, Rs 2 notes
Re 1 and Rs 2 notes could soon become a thing of the past with the government replacing these paper currencies with coins given the short life span and high costs in printing of the small denomination paper notes.
By PTI |
NEW DELHI: Re 1 and Rs 2 notes could soon become a thing of the past with the government replacing these paper currencies with coins given the short life span and high costs in printing of the small denomination paper notes, Parliament was informed on Tuesday.
In a written reply to Rajya Sabha, Minister of State for Finance Namo Narain Meena said, "The notes of these denominations have been coinised."
The government had earlier decided to do the same with Rs five notes, but given the inadequate production capacity of government mints, it was decided to re-introduce this paper currency to supplement the coins, he said.
"The Reserve Bank has informed that in view of the short life span of the lower denominations notes of Re 1, Rs 2, and Rs 5 and the high cost involved in printing and processing of soiled notes of these denominations, the government has decided to discontinue the printing of lower denominations notes," Meena said.
The Minister also said there was no shortage of Rs 10, Rs 20 and Rs 50 bank notes in the country.
In a written reply to Rajya Sabha, Minister of State for Finance Namo Narain Meena said, "The notes of these denominations have been coinised."
The government had earlier decided to do the same with Rs five notes, but given the inadequate production capacity of government mints, it was decided to re-introduce this paper currency to supplement the coins, he said.
"The Reserve Bank has informed that in view of the short life span of the lower denominations notes of Re 1, Rs 2, and Rs 5 and the high cost involved in printing and processing of soiled notes of these denominations, the government has decided to discontinue the printing of lower denominations notes," Meena said.
The Minister also said there was no shortage of Rs 10, Rs 20 and Rs 50 bank notes in the country.
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