Confirmed: New Rs 200 note will be rolled out soon by RBI

[Kool_SRG]

New Rs 200 note: The Ministry of Finance has confirmed that a new Rs 200 note will be issued by the Reserve Bank of India.

The Union government on Wednesday confirmed that a new Rs 200 note will be issued by the Reserve Bank of India. While no immediate date was made known, the new denomination could well hit ATMs and banks as early as next week.

“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,” an official government notification said.

Last month, images of the new denomination note hit social media with several looking for a confirmation. Along with the new Rs 200 note, the government has also confirmed a new Rs 50 note. The earlier Rs 50 notes will continue to remain legal tender.

The new Rs 200 note will help in day-to-day transactions and will replenish the reduction in Rs 500 notes following the demonetisation move by the Union government on November 8 last year.

“The new 200 notes will carry advanced security features. The authorities are taking extra precaution to prevent counterfeiting,” an official aware of the printing schedule had said.

[Kool_SRG]

New Delhi: Ending months of speculation, the finance ministry on Wednesday notified issuing of Rs 200 currency notes, making it a legal tender and paving the way for its circulation.

“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 finance ministry notified through the Gazette of India.

The Reserve Bank of India (RBI) on 18 August notified that a new Rs 50 banknote will be issued shortly under the Mahatma Gandhi series, while bank notes issued under the earlier series will remain legal tender.

With fluorescent blue as its base colour, the new notes will bear the picture of the iconic stone chariot at Hampi, Karnataka, on the reverse. The new note will measure 66mmx135mm, it said.

In a surprise announcement, Prime Minister Narendra Modi on 8 November announced scrapping of old Rs 500 and Rs 1,000 currency notes, wiping out over 85% of the cash in circulation.

 

RBI data shows that currency in circulation stood at Rs 15.70 trillion as on 11 August, over nine months after demonetisation. This is about 88.70% of the Rs 17.7 trillion that was in circulation on 4 November

Introduction of Rs 200 note will fill in the “missing middle” even as the new currency in circulation (CIC) has already reached 84% of the pre-demonetisation level, State Bank of India (SBI) said in a report in July.

The report noted that though there has been a significant move towards relocating distribution of currency towards smaller denominations post demonetisation, there is a mismatch caused by the presence of Rs 2,000 denomination straight after Rs 500 denomination.

“Herein lies the paradox. Notes of Rs 2,000 denomination in ATMs may find few takers because of missing middle—Rs 200 note,” the report said.

[Ara_Tenkai]

Whats the use??? I thought less notes in the system will increase the use of plastic money...