In a move aimed at narrowing the demand and supply gap in smaller-denomination currency bills, the much-awaited Rs 200 notes could come into circulation from next month.
According to a report in the Mint, the Reserve Bank of India has already started printing of Rs 200 denominations at its printing press in Mysuru, and nearly 100 billion Rs 200 notes are likely to be circulated in the market.
“Initially, around a billion Rs 200 notes are expected to hit the market,” the quoted a source as saying.
Earlier this month, PTI had reported that the central bank is looking to introduce Rs 200 notes in the coming months to ease pressure on lower-denomination currencies that are in short supply.
This exercise of printing Rs 200 denomination notes is being undertaken to further improve the currency situation in the country. The problem people are facing due to high-value Rs 2,000 notes would also be taken care of with the circulation of Rs 200 notes, the PTI report said quoting sources.
The central bank had reportedly decided to bring in Rs 200 notes in March after consulting the finance ministry, they said. The notes are going through multiple checks for security and quality at government printing presses.
Meanwhile, the RBI has stopped printing Rs 2,000 notes for past five months, and may not undertake any further printing in the current financial year, the Mint report said.
In fact, the new set of Rs 500 notes are expected to offset the shortage of Rs 2,000 notes in circulation.
The shortage of currency notes was triggered by the scrapping of high-denomination bills in November last year.
In a surprise announcement, Prime Minister Narendra Modi announced scrapping of old notes of Rs 1,000 and Rs 500 notes last year, wiping out over 85 percent of the cash in circulation.