We demand withdrawal of ₹500 notes, retain only ₹100 and ₹200 denominations: CBN

Andhra Pradesh Chief Minister N. Chandrababu Naidu has once again called for the complete withdrawal of ₹500 currency notes, advocating that only ₹100 and ₹200 denominations should remain in circulation.

Reiterating a position he had expressed earlier, Chandrababu said the demand for withdrawing ₹500 notes was still relevant and that the currency system should rely on lower denominations. “We said it then, and we are demanding it even now. The ₹500 notes should also be completely withdrawn, and only ₹100 and ₹200 notes should be retained,” he said.

His statement signals a renewed push for a currency-denomination structure in which ₹100 and ₹200 notes would be the principal denominations available to the public, with ₹500 notes phased out completely.

The proposal, if pursued, would have implications for cash transactions across the economy, including everyday retail purchases, payments to small businesses and cash withdrawals. The ₹500 note currently serves as a widely used denomination for higher-value cash transactions, while ₹100 and ₹200 notes are commonly used for smaller payments.

A withdrawal of ₹500 notes would therefore require careful consideration of the availability of lower denominations, the capacity of banks and ATMs to distribute them, and the convenience of individuals and businesses that rely on cash.

Any decision to withdraw a currency denomination would fall within the jurisdiction of the Union Government and the Reserve Bank of India, in accordance with the applicable legal and monetary framework. Chandrababu's statement, however, reiterates his demand for such a change.

The Chief Minister's latest remarks bring the proposal back into public discussion, though he did not specify a timeline or outline a mechanism for implementing the suggested withdrawal.