RBI to release new Rs 20 bank note under Mahatma Gandhi (New) series

The Reserve Bank of India (RBI) will soon introduce a new Rs 20 currency note with additional features, according to a document of the central bank.

The central bank has already issued new look currency notes in the denominations of Rs 10, Rs 50, Rs 100, and Rs 500, besides introducing Rs 200 and Rs 2,000 bank notes.

The new look notes are being introduced since November 2016 under Mahatma Gandhi (New) series. These are different in size and design compared to the notes issued previously.

The currency notes, except for banned Rs 500 and Rs 1,000, issued under old series continue to remain legal tender.

According to the RBI data bank, there were 4.92 billion pieces of Rs 20 note in circulation as on March 31, 2016. The number more than doubled to about 10 billion pieces by March 2018.

The Rs 20 notes accounted for 9.8 per cent of the total number of currency notes in circulation at the end of March 2018.

Meanwhile, RBI Governor Shaktikanta Das is likely to meet representatives of private sector banks and cooperative banks next week to discuss issues and concerns.

Das took over as 25th Governor of RBI last week following the abrupt exit of Urjit Patel ahead of schedule due to differences with the government.

"Meetings with public sector banks completed. Shall meet representatives of private sector banks and cooperative banks next week," he had tweeted last week.

As part of the consultative process, Das finished meeting with the public sector lender on Wednesday.

It is believed that heads of state-owned bankers discuss the issues related to relaxing the prompt corrective action (PCA) framework, liquidity and credit flows to MSMEs.

Of the 21 state-owned banks, as many as 11 are under the PCA framework, which imposes lending and other restrictions on weak lenders.

These are Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, Uco Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra.

In the first meeting last Wednesday, the bankers had sought some easing in the one-day default norms announced by the RBI through the February 12 circular, which nullified all other debt resolution mechanisms.