New Rs 500 notes with printing defect valid: RBI
After admitting to ‘printing errors’ in the new Rs 500 note, the Reserve Bank of India (RBI) has clarified that the notes with defects are still valid and legal tender.
Earlier today, RBI admitted that in a rush to go to print, an unspecified number of notes of Rs 500 denomination have visible errors. However, there is no saying how many such notes exist in circulation.
The RBI admittance came just two weeks into the note being brought into circulation, after a handful citizens shared images of two slightly different notes on social media. The images have gone viral since then.
The most visible difference is the way the guarantee declaration has shifted to superimpose on the security thread in some notes, while in others there is a visible shadow of Mahatma Gandhi’s face.
The position of the Ashoka Pillar lion is also in wrong place while some of the numbers on the note extend out.
One of the biggest goals behind the demonetization of Rs 500 and Rs 1000 notes was to make the existing fake currency defunct and make counterfeiting more difficult.
Although the government might have succeeded in making the fake currency redundant, the different variants of the new Rs 500 note can aid counterfeiting as people might choose to accept newly-printed fake notes thinking they are legal tender.
However, the RBI has said these are valid and can be used. If people find it difficult to transact in these notes, they have been advised to exchange them.
Clarifying that the notes with errors were still valid, RBI spokesperson had earlier said, “It is a valid legal tender and can be freely used in transactions. But if someone does not want to use it and return it to RBI, that too can be done and we will give them full value.”