Following the demonetization on 8 November by PM Narendra Modi last year, RBI has now taken decision after the order by Modi to demonetize Rs 100 note and print new note of 200 rupees.
“For day-to-day transaction purposes, the introduction of 200 rupee notes will add to the ease of operations,” Soumya Kanti Ghosh, group chief economist at the SBI Group stated.
Earlier, the RBI board had finalized the plan to issue banknotes of Rs 200 denomination. BJP government had inspected the launch of the new notes that would assist citizens carry out easily.
On November 8, about 1,650 crore notes of Rs 500 were demonetized to remove black money from the country.
“A minor part of that has been replenished by 2000 rupee notes and a larger part by the new 500 rupee notes, though not in full,” Ghosh stated. “The introduction of 200 rupee notes will replenish the missing middle, triggered by the withdrawal of the old series of 500 rupee notes.” He added.
Lower denomination notes helps the government’s attempts at changing over the currency mix in the system.
At the time of demonetisation, it had directed the removal of the then current Rs 500 and Rs 1,000 currency notes, which result for about 86% of currency in distribution of Rs 17.9 lakh crore.
On June 9 in 2017, the money transmission with the public is at Rs 14.6 lakh crore, with 18.4% lower than the pre-demonetisation stage.
“The new 200 notes will carry advanced security features. The authorities are taking extra precaution to prevent counterfeiting,” source stated.