RBI to Introduce Rs 200 Notes Soon, Printing Order has been Placed
According to the Reserve Bank of India, the Rs 200 notes are likely to be released as soon as possible. The Indian government has issued a gazette notification that will allow for the distribution of Rs 200 denomination currency notes.
As per the notification, it is said that “In exercise of the powers conferred by sub-section (1) of Section 24 of the Reserve Bank of India Act, 1934, and on the recommendations of the central board of directors of RBI, the Centre hereby specifies the denomination of bank notes of the value of two hundred rupees”.
The currency note is expected to address liquidity issue and also reduce the burden on the Rs 100 note. The finance minister Arun Jaitley said on the new currency note “The entire process about it, when will it be printed, is all coordinated by the RBI. Therefore, only RBI can say about its (launch) date”.
The Department of Economic Affairs Secretary SC Garg tweeted “The government has today specified denomination of bank note of Rs 200 value. Soon this note will get added to the bucket of currency notes in India”.
ET had reported that the Reserve bank of India is likely to put the proposed Rs 200 notes in bank circulation in last week of August or may be in the first week of September 2017. RBI expects the notes to become very popular as there is no other denomination between Rs 100 and Rs 500 and is taking measures to ensure its availability quickly, the story said quoting a source.
A larger percentage of smaller denomination notes are expected to discourage black economy and hoarding. When asked if the government has plans to discontinue the Rs 2,000 note Jaitley said: “I have not heard any discussion like this.”