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.
Why Rs. 200/- Note?
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.