Reserve Bank of India has started preparing a plan to launch the 200 Rupee note, people aware of the development revealed. The central bank which has already approved the launch of new 200-rupee denominations is likely to make them public from last week of this month or early next month (September).
This move will apparently reduce the deficiency of smaller denomination notes. Until now, only the 500 Rs note is under circulation between 100 and 2000-rupee denomination and that’s keeping the cash transactions in bothered state. Also, people in country facing severe cash crunch post demonetization and we’re only left with 70% of cash in bigger notes. Prior to demonetization, India was holding 86% of cash in Rs 500 and 1000 notes.
According to sources, around 50 Crore 200 notes will be printed and made available to public to gradually bring down the scarcity of cash and illegal trade. Earlier last week, we have read about the RBI’s decision to introduce new 50 Rupee note without demonetizing the older one.
However, a chief economist at State Bank of India says, ‘the large number of new currency notes will certainly thwart the operational difficulties being faced by the common man.’