Saturday , February 24 2018

RBI clears proposal to introduce new Rs200 notes

Reserve Bank of India

The Board of RBI cleared the proposal to introduce  the Banknotes of Rs200 and the printing process of the notes will begin after June.

After the note ban of Rs 500, Rs 1000 notes in November 2016, the Reserve Bank of India introduced new notes of Rs 500 and Rs 2000 notes. Now the Reserve Bank of India is planning to introduce the new banknotes of Rs 200.

According to the reports, the board of RBI has cleared the proposal to introduce the new Rs 200 notes and the decision was taken in meeting in the last month.

The reports also stated that the process of printing the banknotes of Rs 200 is likely to begin after the month of June, once the administration finally approves the new denomination of Rs200.

The purpose of introducing the new lower denomination banknotes comes in the backdrop of the administration move to rework the cash mix

If introduced, Rs 200 bank notes it would be the second denomination after Rs 2000 notes.

After demonetisation 86% of currency is in the circulation of Rs 17.9 trillion. As on 24 March, the currency in circulation was Rs 13.12 trillion, still around 27% off pre-demonetisation levels. Moreover, the administration is encouraging the digital move and many not further expand the currency in circulation to the pre-demonetisation level.

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On 13 March, the central bank lifted all the cash withdrawal caps. ATM operators say that there is a scarcity of lower denomination banknotes.

The Reserve Bank didn’t reveal the details about how many of the scrapped notes it got back from the people.

The board of RBI has 14 members apart from the RBI governor Urjit Patel and four deputy governors, the board also financial services secretary Anjuly Chib Duggala and economic affairs secretary Shaktikanta Das.

In order to determine the number of fake notes, the government has planned to modify the security features of high denomination notes Rs 2,000 and Rs 500 for every 3-4 years in accordance with global standards.

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