The country’s central bank has given its stamp of approval to an idea to give India its first currency backed by real estate, a move that would be welcomed by investors.
The government said on Monday that the Reserve Bank of India (RBI) will issue two new notes to be issued in November and January and will also issue two notes of “good quality”, “firm value”, and “high quality” currency in November, December, and January.
The currency would be pegged to the rupee.
The RBI will issue the new notes in denominations of 50, 1,000, 2,000 and 5,000 rupees, the central bank said.
“This move will give a real boost to the domestic real estate sector, which currently accounts for about 40% of the economy, and will benefit farmers and the rural population,” said M Venkatesh, director general, Reserve Bank, in a statement.RBI had previously issued an advisory in July 2017 to the government on the issue of the notes.
The government had also sought comments from the RBI on the new currency, but no reply was forthcoming by then.