Just 2 Years After Issue, Rs 500 and Rs 2000 Notes ‘Unusable’ Because of Low-quality Paper
One official reason given for this is “because users in India keep the currency folded or tie it with saree or dhoti”. Seriously.
The currency notes for Rs 500 and Rs 2000 denomination have reportedly become “unusable” barely two years since they were first issued post-demonetisation, in 2016. Additionally, the newly-issued Rs 10 currency notes are also facing issues. It has been reported that a growing number of banks have started categorising these notes as “non-issuable”.
The Financial Times reported that the paper used to print these notes is of inferior as compared to the previously-used paper in the older notes, especially those of Rs 10. The report added that higher denomination notes classified as “unusable” cannot be used in Automated Teller Machines (ATMs) as the ATMs, then, make errors in the counting of these notes.
Speaking to Amar Ujala, a senior RBI official denied allegations of inferior quality of the paper used to print the currency. Underscoring that the new notes had additional security features in order to prevent counterfeiting, the official added, “The new notes are becoming unusable because users in India keep the currency folded or tie it with saree or dhoti.”