The Reserve Bank of India (RBI) on 19 December 2016 announced to issue Rs 500 denomination banknotes in Mahatma Gandhi (new) series with inset letter 'R' in both the number panels.
These new notes will bear the signature of Urjit R Patel, Governor of Reserve Bank of India. The year of printing '2016' will be printed on the reverse side of the banknote.
The design of these notes will be much similar in all respects to the Rs 500 banknotes in Mahatma Gandhi (New) Series which are currently in legal tender.
However, all Rs 500 bank notes issued earlier after 8 November 2016 in the Mahatma Gandhi (New) series will continue to be a legal tender. These banknotes came with the inset letter 'E' in both the number panels. Swachh Bharat Logo was also printed on the reverse side of the note.
Earlier in the first week of December 2016, the Reserve Bank of India announced to issue new Rs 100, Rs 50 and Rs 20 denomination banknotes as well.
Issuance of these small value currencies acted as a big relief for the people who were finding it difficult to meet their daily requirements after the implementation of the demonetisation plan of the Union Government, that is the ban on old Rs 500 and Rs 1000 currency notes.
These small value notes along with the new Rs 500 currency notes will not only deal with the cash crunch but will also pour in liquidity in the country at the time when almost 86 percent of the cash has been wiped off from the market.