[The image of Rs 200 currency note being circulated in the media. The RBI has not officially released the look of the note which it promises to issue soon.]
New Delhi: About ten months after introducing Rs. 2000 currency notes in the markets, the Reserve Bank of India (RBI) is set to roll out Rs. 200 denominations in the coming month September, Ministry of Finance said in a notification issued on Wednesday.
"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 the Reserve Bank of India, the Central Government hereby specifies the denomination of bank notes of the value of two hundred rupees", the Ministry of Finance said in the notification.
These notes are likely to be circulated by the end of August or in the first week of September. Around 50 crores notes of Rs. 200 will be printed to avoid lack of notes and possibility of an illegal trade.
"A large number of new currency notes will thwart the operational difficulties which may be faced by a common man," said Soumya Kanti Ghosh, group chief economist at State Bank of India.
"Introduction of Rs. 200 notes will facilitate cash usages from a transaction motive perspective and will increase the share of smaller denomination notes in the overall currency circulation," Ghosh said.
The Reserve Bank of India had introduced Rs.2000 currency notes in the month of November last year after the government announced demonitisation of old Rs. 500 and Rs. 1000 currency notes.
The move had craeted chaos across the country, and had done a huge loss to economy, according to the market insiders.
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