The RBI has also asked the lenders to make separate arrangements for the senior citizens.
“New series of Rs 500 denomination notes (were) introduced today in New Delhi at SBI Parliament Street Branch,” the Ministry of Finance said in a tweet on Monday.
Soon after the announcement , some branches like SBI Main branch in Delhi began distributing Rs 500 notes.
The new 500-note is expected to ease pressure on banks’ cash reserve and improve liquidity in the market.
However, 500 and 2,000 rupee notes dispensed through ATMs will be possible after recalibration of such machines as these are of different sizes.
According to the central bank statement, the new Rs 500 banknotes bear signature of Reserve Bank of India Governor Urjit Patel.
The stone grey-coloured note bears year of printing ‘2016’ and 'Swachh Bharat' logo printed on the reverse side.
The new Rs 500 note is also different from the previous ones in colour, size, theme, location of security features and design elements.
Besides, it has Red Fort as an image of Indian heritage site with Indian flag on the reverse of it.
The banknote also has features (intaglio printing of Mahatma Gandhi portrait, Ashoka Pillar emblem, bleed lines, circle with 500 in the right, and the identification mark) which enable the visually impaired person to identify the denomination.
With PTI inputs