NEW DELHI: The Finance Ministry on Wednesday officially gave its go-ahead to the Reserve Bank to issue Rs 200 notes that will ease pressure on lower-denomination currency bills.
“The central government hereby specifies the denomination of bank notes of the value of 200 rupees,” a Gazette notification said.
The notification has been issued under Section 24 of the Reserve Bank of India Act, 1934, and on the recommendations of the Central Board of Directors of the RBI.
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Along with the new Rs 200 note, the government has also confirmed a new Rs 50 note. The earlier Rs 50 notes will continue to remain legal tender.
Earlier, Minister of State for Finance Santosh Kumar Gangwar told IANS that Rs 200 note, printing of which had begun, would be in circulation soon.
The move to introduce the new currency was to increase the circulation of smaller denomination notes.
An official source had told IANS that the paper for Rs 200 notes was ready in the Mysuru paper mill in June. It was being printed in the RBI printing press.
Following the demonetisation on November 9 last year, the Reserve Bank had introduced Rs 2,000 notes and also issued a new Rs 500 notes with additional security features.
So with the introduction of Rs 200 notes, the problem people face due to high-value Rs 2,000 notes would be taken care of.
The Reserve Bank has also introduced a new fluorescent blue Rs 50 banknotes bearing the motif of ‘Hampi with Chariot’ that depicts India’s cultural heritage.
In a surprise announcement, Prime Minister Narendra Modi had in November last year announced scrapping of old notes of Rs 1,000 and Rs 500 notes, wiping out over 86 per cent of the cash in circulation.
The move was aimed at checking black money, counterfeit notes and terror financing.