In a bid to counter black economy and fake currencies issues in India, RBI had introduced new Rs. 2000 and Rs. 500 notes during its ambitious Demonetization drive. Now, as per the latest developments inside RBI, there will further be new notes launched from September next month of Rs. 200!
There were 1,717 crore notes of Rs 500 and 686 crore of Rs 1,000 before the Centre announced demonetization. The Rs. 200 project by RBI is also a part of their remonetization of the economy, which got usurped of all the old Rs. 500 and the now defunct Rs. 1000 notes.
What is the purpose of the new notes?
The new notes of Rs. 200 will facilitate cash usages from a transaction motive perspective. It will also increase the share of smaller denomination notes in the overall currency circulation.
Soumya Kanti Ghosh, group chief economist at State Bank of India.
” A large number of new currency notes will thwart the operational difficulties which may be faced by a common man. If the proportion of higher denomination notes is large in the total currency in the circulation, it incentivises hoarding and generation of unaccounted money.”
Another reason for introducing the new notes is that there are no other denomination available between Rs 100 and Rs 500 and RBI is expecting Rs 200 notes to become very popular. Since, the day to day transactions happen mostly at lower denominations, the Rs. 200 move will be a welcomed one.