In Board meeting of RBI, 14 members of the board have decided to put out notes of Rs 200/- in circulation as soon when government signs the proposal. Once it’s done the new denomination printing will start after June.
Last year in November 2016 Central government demonetizes the higher value notes od Rs 500/- and Rs 1000/-. later they have circulated new notes of Rs 500/- and Rs2000/-. Due to shortage of smaller denomination of Rs 100/-, many problems occurred to get change of Rs 2000/-
Last month, RBI also started field trials of plastic notes of Rs 10/- as plastic notes are expected to last longer than cotton substrate based banknotes. If the central government approves the proposal, Rs 200/- will be the second new denomination note after demonetization.
The proposal of Rs 200/- was approved by 14 board members at RBI meeting in last month & the approval from the central government yet to come.
How Rs.200/- note beneficial?
The approval of Rs 200/- denomination will be beneficial for small scale traders and will also help to those consumers who are making small purchases.
The move of releasing denomination of Rs 200 /- notes will be a wake of recovery of a lot of fake currency notes after demonetization.