India's re-monetisation exercise appears to be entering its final lap, with the central bank beginning to print bills of 200 rupees – perhaps for the first time – to help ease consumer transactions.Govt. of India has confirmed that Rs 200 currency note is, in fact, a reality, and indications are strong that the currency will hit the market very soon.
The notes of Rs 200 denomination are being printed in one of the government-owned facilities after the Reserve Bank of India RBI placed an order a few weeks ago for the bills, two people familiar with the matter told ET.
An email sent to the RBI seeking its comments could not elicit any response until the publication of this report.
As per confirmed reports coming in, it has been revealed that printing of Rs 200 currency notes has started in full swing.
This is for the first time that a denomination of Rs 200 currency note would be introduced in India.
This is being hailed as a major step towards ‘remonetization’ after demonetization kicked in last November, when Govt. pulled out Rs 500 and Rs 1000 currency notes from the market.
With Rs 200 currency note, these are the denominations of currencies which would be available in India:
Re 1, Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200 and Rs 2000.
The biggest reason why Rs 200 currency has been introduced is the gap between Rs 500 and Rs 2000.
Due to demonetization, currencies worth Rs 15.44 lakh crore was sucked out of the system. Approximately 1,650 crore pieces of Rs 500 notes were demonetized all of a sudden, and it created chaos.
Rs 8.58 lakh crore worth of Rs 500 notes and Rs 6.86 lakh crore in Rs 1,000 were demonetized.
Rs 200 currency has been planned to bridge this gap.
An official said in the month of April, “People are still reluctant to take Rs 2000 and therefore there is still a shortage of currency notes and the need is to have lower denomination notes,”
Chief economist at the SBI Group, Soumya Kanti Ghosh, Said , “For day-to-day transaction purposes, the introduction of 200 rupee notes will add to the ease of operations..”, adding, “The introduction of 200 rupee notes will replenish the missing middle, triggered by the withdrawal of the old series of 500 rupee notes.”
The printing of currency notes is done either in printing units run by the government-run Security Printing and Minting Corporation of India Ltd or at printing presses in Mysore (Karnataka) and Salboni (West Bengal), managed by the RBI-owned
The introduction of the Rs-200 currency notes predates the federal government’s decision to overnight withdraw bills of higher denomination in November as part of a broader exercise to stop counterfeiting and curbing untaxed cash in Asia’s third-biggest economy.
The RBI board had earlier cleared the proposal to issue banknotes of Rs 200 denomination. The government, too, had examined the introduction of the new notes that would help citizens transact easily.
The RBI board had earlier cleared the proposal to issue banknotes of Rs 200 denomination. The government, too, had examined the introduction of the new notes that would help citizens transact easily.
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