RBI to issue new Rs 100 banknotes, old notes to continue as legal tender

New Delhi: The Reserve Bank of India (RBI) is all set to issue new Rs 100 banknotes in the Mahatma Gandhi Series-2005 without inset letter in both the numbering panels, bearing the signature of Dr. Urjit R. Patel, Governor, Reserve Bank of India.

The old Rs 100 notes will, however, continue as legal tender, the Reserve Bank said.

"The Reserve Bank of India will shortly issue ₹ 100 denomination banknotes in the Mahatma Gandhi Series-2005, without inset letter in both the numbering panels, bearing the signature of Dr. Urjit R. Patel, Governor, Reserve Bank of India, and the year of printing '2016' printed on the reverse of the banknote," the central bank said in a statement.

The RBI further informed in the statement that the design of these banknotes to be issued now is similar in all respects to the ₹ 100 banknotes in Mahatma Gandhi Series- 2005 issued earlier having ascending size of numerals in the number panels, bleed lines, and enlarged identification mark, on the obverse.

Following the demonetisation move by the government of India, banks are reportedly running short of cash due to shortage of the new Rs 500 and Rs 2000 notes.

Moreover, reports state that consumers and traders are hoarding currency notes available with them and not backing the same to circulation.

According to a recent report in The Times of India, of the total currency received by the banks in Rs 20, Rs 50, Rs 100 and Rs 2,000 denominations, only an estimated 16 percent of the total are Rs 100 notes.

The Rs 100 notes have been distributed largely via ATMs but they get over very soon.

And while the new Rs 500 and Rs 2000 notes have been made available for the public, it is reportedly very hard to get changes for them in Rs 100 notes.

Therefore, the Reserve Bank has decided to issue new Rs 100 banknotes which could be a major relief for the public.

Regarding the old Rs 100 notes, the Reserve Bank of India that it "had also issued ₹ 100 denomination banknotes with the ascending size of numerals in the number panels but without bleed lines and enlarged identification mark. These banknotes will remain in circulation concomitantly with the banknotes being issued now."

All the banknotes in the denomination of Rs 100 issued by the Bank in the past will continue to be legal tender, the central bank clarified.

Earlier on Sunday, the RBI also announced that it will shortly issue new Rs 20 and Rs 50 banknotes in the Mahatma Gandhi Series-2005, without an inset letter in both the number panels.

The Reserve Bank also clarified that the old Rs 20 and Rs 50 notes would continue to be legal tenders.