Indian Prime Minister Narendra Modi has declared demonetisation of Rs 2.5 lakh currency notes as a major success, and the economy is growing at an unprecedented pace.
The government also announced that it will also introduce an online currency exchange service and a national bank that will offer online and offline cash payment, among other things.
The central bank has also issued a special currency note for sale, and it will soon be printed.
The Reserve Bank of India (RBI) has said that the RBI will also start printing new Rs 2 lakh notes from October 1, 2018, and that the new notes will be legal tender for transactions worth Rs 500 and above.
This will help curb the black market, which is estimated to be around Rs 20 trillion (Rs 16,000 trillion).
The new notes were printed in denominations of Rs 500, Rs 1,000 and Rs 2,-.
The RBI will not issue new notes in denominations below Rs 500 as they are not considered legal tender in India.
However, the new note will not be legal for sale or use on bank accounts.
As per a statement issued by the government, the RBI’s decision to issue the new currency notes will also enable banks to process digital transactions through digital wallets, which will allow them to store digital money.
RBI Governor Raghuram Rajan had earlier said that digital currencies such as bitcoin were not accepted by the RBI because they are subject to black market transactions.