Parliament on Thursday passed the Coinage Bill 2009 paving the way for minting of coins up to Rs 1,000 denomination, although no timeframe has yet been set for its introduction.
Replying to the debate on the Bill that was passed by the Rajya Sabha, finance minister Pranab Mukherjee said at present the clause on circulation of coins of Rs 1,000 denomination has been inserted only as an enabling provision in the coinage law. He did not indicate when it could be introduced.
The bill, which was passed by the Lok Sabha in March, consolidates various laws relating to coins and mints.
Mukherjee said the payments by way of coins was being limited to Rs 1,000 by an individual, as suggested by the Reserve Bank of India (RBI), for the sake of convenience.
The rupee was first introduced as a silver coin for transactions by emperor Sher Shah Suri, who built the Grand Trunk road in the 16th century.
Last month a new set of coins of 50 paisa, Rs 1, Rs 2, Rs 5 and Rs 10 with the new rupee symbol embedded in it. On concerns about counterfeit notes, Mukherjee agreed there was a serious threat.
"Some times it is used as a policy matter. I do not want to use the names of the country. Everybody is aware of...what is their objective," the finance minister said.