Bank of India says it has ‘no plans’ to issue new Rs 500 notes amid crisis

A top Indian bank has said it has no plans to issue any new notes as the economy faces a “severe crisis”.

The Reserve Bank of Canada has warned that the government is facing “a severe crisis” and the central bank has taken steps to keep inflation low by introducing a 10 per cent limit on cash withdrawals.

The RBI said on Monday it had no plans for any new banknotes as it did not want to “dismantle the system” by issuing new notes.

The central bank said it was “deeply concerned” about the situation and had taken steps such as limiting cash withdrawals to 60 days from 90 days in an attempt to “ensure liquidity in the system”.

It also said it had stopped the issuance of new notes in the last three months and it had restricted the purchase of goods and services in its circulation.

On Monday, the bank said the “dire” situation in the economy was affecting the financial sector.

In its statement, the central banker said it is now necessary to “preserve the integrity of the monetary system” and “continue to promote an orderly and sound financial system”.

The statement said that the Reserve Bank had started to “review the monetary policy and monetary policy measures adopted to date” and that it was the responsibility of the RBI to implement the policy.

It said it could not “advance policy objectives in a chaotic and complex environment” as the central banks actions had a “significant impact” on the economy.

“The RBI cannot undertake the work of an orderly monetary system without the full support of the government.

The RBI cannot do its job in a disorderly and complex situation,” the statement said.

In August, the RBI said it would reduce the maximum cash withdrawal limit to Rs 1,000 and the maximum credit limit to no more than Rs 10,000.

The bank’s decision prompted criticism from the opposition parties, including Prime Minister Narendra Modi, who had called it “un-Islamic”.

Earlier this week, Modi said he was not concerned about the economy because the government had taken “all measures to protect the integrity and soundness of the banking system”.

“We have already taken all measures to maintain the integrity, soundness and stability of the system,” he told reporters on Wednesday.

“This is not a decision taken by me, it is a decision that has been taken by the central bankers of the world,” he said.

Earlier this month, the Reserve Board cut the maximum withdrawal limit from Rs 10 lakh to Rs 5 lakh, and the bank’s balance sheet was revised to reflect the changes.

On Sunday, the Bank of Baroda said it will not issue any notes for now because of the “serious crisis” in the country.

The Indian central bank had reduced the limit on withdrawals to Rs 10 from Rs 30,000 as part of a plan to ease the pressure on the banking sector.

However, the move was criticised by the opposition.

“Banking is a big job and a huge business in India.

It’s been a job where there’s been no progress,” Opposition leader Subramanian Swamy said.

“The government has been taking all the steps that were necessary to maintain banking and ensure that no banks have to suffer.

That’s why the RBI should not be doing this.

It has to focus on saving the banks,” he added.

In September, the government announced a Rs 3.2 trillion ($4.8 trillion) bailout for banks, including the Reserve System, to cover a massive shortfall in the banking industry.

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