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.
PTI
First Published: Tuesday, December 08, 2009, 23:11