RBI won’t introduce new denomination notes, to focus on cashless transactions

The Reserve Bank of India (RBI) silenced all rumours and confirmed it had no plans to introduce new denomination notes.

RBI Deputy Governor NS Vishwanathan said the RBI is pushing for more cashless transactions now.

"Presently RBI has no idea to introduce currencies of new denominations. The central banking institution wants to encourage cashless transactions, which are helpful to the people,” said Vishwanathan during a lecture on 'credit culture and financial system'.

Meanwhile, he expressed concerns over Non Performing Assets (NPAs), saying they were affecting the income and profit of banks.

“Banks cannot escape from the responsibility of controlling NPAs in their balance sheets,” he said.

The NPA amount of the state-run banks rose to Rs 6.3 lakh crore at end of the current fiscal's second quarter that ended in September.

Banks are expected to base their lending decisions on a careful and prudent assessment of the financial position and repaying capacity of the borrower. Credit would be given to only the right people, he said.

Banks must have good system of credit culture, he added.