New Delhi, April 4: In a bid to end paucity of lower denomination banknotes, the Reserve Bank of India (RBI) is likely to start the process of printing the new Rs200 notes after June. The printing process of the Rs 200 new notes will begin only after the government officially approves this new denomination. As per reports, the decision to print Rs 200 notes and bring them to circulation was taken at the RBI board meeting in March.
The board of the Reserve Bank of India (RBI), which has 14 members, has cleared a proposal to introduce banknotes of Rs 200 denomination; Livemint quoted two people who were aware of the development. Along with RBI governor Urjit Patel and four deputy governors, the board also has economic affairs secretary Shaktikanta Das and financial services secretary Anjuly Chib Duggal.
Once the government officially approves this new denomination, the printing would gain momentum is would cater the needs of people of the nation who have been reeling under severe cash crunch post demonetisation. The move to introduce lower denomination notes comes against the backdrop of the government’s move to rework the currency mix, reports stated.
On November 8, 2016, Prime Minister Narendra Modi sent shock waves across the nation when he made the surprise announcement of scrapping old Rs 500 and Rs 1000 notes. During his surprise address on November 8 at 8 PM, Modi introduced new Rs 2,000 notes as part of the government’s efforts to weed out black money and fake currency. The decision was taken to put an end to black money menace, eradicate corruption and terror funding. As per Home Ministry’s statements in the Lok Sabha, from November 9, 2016, to March 7 this year, 3,346 pieces of fake Rs 2,000 notes had been recovered from various places in India.
As per a recent report, to check counterfeiting, the government has also planned to change security features of higher denomination banknotes of Rs 2,000 and Rs 500 every 3-4 years in accordance with global standards. The move comes in the wake of recovery of a large amount of fake Indian currency notes in last four months after demonetisation.
The withdrawal of Rs 500 and Rs 1,000 currency notes amounted to around 86% of currency in circulation of Rs 17.9 trillion. The RBI then replaced the old notes with the new Rs 2,000 and redesigned Rs 500 bank notes. The government is, however, encouraging all forms of digital payments to maintain transparency and easy transfer of fund. ATM operators, however, say that there is a paucity of lower denomination banknotes. There has been an outcry on social media about the inavailabity of cash in ATMs. Most of the ATMs across the nation are running dry leaving many gasping for cash.