₹1 Banknotes to Make Comeback in India

[dheer]

Oh dear, don't tell me that! I know few people who paid ₹2000 for a single note! They must be having nightmare now.

Aditya

Well those who paid 2000 got a rare note  others who are getting it now for Rs 20 are ordinary notes 

[Bimat]

Vivek,

Are you sure that these ₹1 notes are (were) available for ₹20 each? Today, these were being sold for ₹400 each at Churchgate (At Coinex 2015)!

And yes, star series ₹1 notes are also available now!

Aditya

[Vivek]

Yes Aditya
regular notes Rs20 and start notes were at 400. I purchased 5 last weekend to carry to native place for Friends.
Bundle was for 1300
Any news on RBI of which government banks are distributing?
Vivek

[dheer]

Vivek,

Are you sure that these ₹1 notes are (were) available for ₹20 each? Today, these were being sold for ₹400 each at Churchgate (At Coinex 2015)!

And yes, star series ₹1 notes are also available now!

Aditya

Looks like the loot continues, I guess the dealers know that there are quite a few first time visitors to such exhibitions and hence they charge exorbitant rates. While for regular customers its regular price. 

[kishoretkm]

In Chennai RBI, they issued one rupee bundle as limited, and they stopped bcos of over crowded on last week and will resume the sales on next week monday (26th Oct) onwards (Face value),
Outside of RBI, the 1 rupee bundle sold at 400-600 Rs.

one of Dealer in chennai told me that before November it will be available at all local banks at face value. SO we are waiting for that moment.

[dheer]

If you get spare let me know ...
There are quite a few here

[kishoretkm]

Sure! I will let you know if I get.

Will plan to get RIM of one rupee note bundle if We get face value and happy to give others also, (bcos Im not GOING TO lost anything if i GIVE OTHERS to face value ).

Also i am in dilema suppose should I buy atleast one bundle from the guy who is offered the below price range (400-600), for safety purpose incase of not getting any bundle on November month!!!.

Waiting till 26th Oct else will plan to go Chennai RBI directly to get atleast one bundle.

PS: Main reason for buying RIM is, to distribute my friends circle, colleagues and relatives.

If you get spare let me know ...
There are quite a few here

[Bimat]

In last week's annual coin fair of Mumbai Coin Society, a single bundle was available for ₹800. A rim was available for ₹10,000 or so and only one dealer had it (who basically supplies banknotes to all other dealers). RBI, which had their own stall, did not distribute the ₹1 bundles.

Aditya

[dheer]

If RBI was distributing Rs 1 notes, there would have been stampede 

[Bimat]

160-million currency notes of ₹1 issued in last two years

PRESS TRUST OF INDIA

MUMBAI, JANUARY 3:

The Finance Ministry has issued as many as 160 million currency notes of one rupee denomination in the last two years, nearly two decades after they were taken off print, according to queries made under the RTI Act.

Delhi-based RTI activist Subhash Chandra Agrawal and Mumbai-based RTI activist Manoranjay Roy had, in separate RTI queries, sought the number of one rupee currency notes issued by the government in the last 20 years.

"In 1994-95, a total 40 million currency notes of one rupee denomination were issued. Thereafter, there was no issuance of one rupee notes from fiscal year 1995-96 till fiscal year 2013-14," the reply furnished by Deputy Manager (HR) and Public Information Officer of Currency Note Press, G Krishna Mohan, said.

However, in 2014-15, a total five million notes and in the current fiscal year, a total of 155 million notes of one rupee denomination, were again introduced in the market, the reply said. It further said that in 1994-95, the production cost of 40 million currency notes of one rupee denomination was ₹59,40,059, implying that the production cost stood at ₹1.48 a note.

Agrawal claimed, "I possess the file notings and the correspondence which indicate that the process of reissuing new one rupee notes at a high printing cost was a bureaucratic exercise carried out by the Manmohan Singh-led UPA government, and it was done despite stiff resistance from the Reserve Bank of India."

"Besides, one rupee note is being sold openly through Web sites at a premium price of ₹50, which the apex bank needs to put a check on," he said.

Questioning the move to reissue the notes, Roy said, "Considering the high printing cost of a one rupee note, and its very short life, this decision was absolutely avoidable."

Abhay Pethe, a professor in the Economics department of Mumbai University, said there was no need for the RBI to print more one rupee notes unless it was mandated by the government.

"It doesn't have anything to do with the numismatic value also. The issuance of one rupee notes is not going to increase their circulation either," he said.

Explaining the nuances, RBI spokesperson Alpana Killawala said, "The one rupee note is actually a coin. And unlike the notes, which are a liability of the RBI, coins are a liability of the Government of India. Hence, the decision to reissue one rupee notes was taken by the Finance Ministry."

She added, "Selling of one rupee notes at high premium is a mutual bartering act between two or more individuals and it does not amount to criminality."

"The present stock of one rupee notes should be sold only as souvenir in attractive plastic packing at a premium price, just as the silver-alloy commemorative coins are sold in plastic packing, rather than putting them (one rupee notes) into circulation in the market," Agrawal said.

The limited number of one rupee notes would not stay in circulation anyway, as anyone getting them is likely to keep it as a collector's item, he said.

(This article was published on January 3, 2016)

Source: The Hindu Business Line

[Bimat]

Why is Mr. Agrawal so much interested in coins / banknotes related matters? So many RTI queries for small things like this is actually a misuse of it!

Aditya

[Bimat]

Explaining the nuances, RBI spokesperson Alpana Killawala said, "The one rupee note is actually a coin.

India becomes first country to issue paper coins.

Aditya

[dheer]

India becomes first country to issue paper coins.

Aditya

So now it will become more rare 
Dealers will sell one rupee coin with composition as paper   >

[Figleaf]

She added, "Selling of one rupee notes at high premium is a mutual bartering act between two or more individuals and it does not amount to criminality."

"The present stock of one rupee notes should be sold only as souvenir in attractive plastic packing at a premium price, just as the silver-alloy commemorative coins are sold in plastic packing, rather than putting them (one rupee notes) into circulation in the market," Agrawal said.

The limited number of one rupee notes would not stay in circulation anyway, as anyone getting them is likely to keep it as a collector's item, he said.

It looks to me like this quote is the key: the notes are meant to provide an income for the government, not to alleviate a shortage of small change. They are not meant for circulation, they are souvenirs. This also answers the concerns of the "RTI activists", who see this as a loss-making operation.

Prof. Pethe is right, though. It has nothing to do with numismatic value. With 160 million notes printed already, there will not be any numismatic value. There is enough supply for a popular craze. If that ever happens...

Peter

[Pabitra]

Why is Mr. Agrawal so much interested in coins / banknotes related matters? So many RTI queries for small things like this is actually a misuse of it!

Subhash and his wife are so called "RTI activists".
Running a shop in Chandni Chowk, downtown Delhi, they have ample free time to raise more than 2000 queries per annum.
Very much you buying coins, they collect RTI answers.