RBI all set to introduce Rs 200 notes, says will help better transactions

The Reserve Bank of India (RBI) has decided to print Rs 200 notes for better transactions in the market. 

After almost seven months of demonetization, the RBI has come up with this plan to speed up the process of re-monetisation.

"For day-to-day transaction purposes, the introduction of 200 rupee notes will add to the ease of operations," said Soumya Kanti Ghosh, group chief economist at the SBI Group, to Asian Age.

RBI had passed the proposal to issue Rs 200 notes two months back. 

In an attempt to counter black money and also counterfeit money, Prime Minister Narendra Modi had introduced demonetization back in November 2016. The RBI scrapped over 86 per cent of currency in circulation and introduced new high denomination Rs 2,000 and Rs 500 notes.

According to data obtained from a State Bank of India research, before November 8, there were roughly 1,650 crore banknotes of Rs 500 denomination. The overnight removal of these notes created a void in the circulation of notes in the system.

Although printing of new Rs 500 notes did help in filling the void, it was not enough since the next denomination currency was Rs 2,000 which continued causing problems in transactions.

According to the Economic Times, the Rs 200 notes are being printed in a government-owned facility to help smoothen consumer transactions.

• RBI
• Rs 200
• demonetisation