New bank notes of Rs 2000 and Rs 500 were introduced after Prime Minister Narendra Modi announced demonetisation on November 8, 2016. There have been talks of the Reserve Bank of India bringing in new currency of Rs 200 in the economy to help in easier consumer transactions. The central bank has reportedly begun the process to print these new Rs 200 notes to bring India’s re-monetisation exercise to an end.
As per a report in the Economic Times, this new currency is being printed at a government-owned facility in Hoshangabad in Madhya Pradesh. The Reserve Bank of India (RBI) had placed an order for the currency a few weeks ago. The report also states that Rs 200 notes will include new and advanced security features to prevent counterfeiting. These upcoming notes are undergoing several levels of security and quality checks at the government’s press unit at Hoshangabad.
The new Rs 200 note is expected to ease out the cash flow in the economy and support the government’s mission to realign the currency mix in the system.
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The Prime Minister had in November announced the withdrawal of the old Rs 1000 and Rs 5000 notes with an aim to reduce counterfeiting and to keep a check on untaxed cash. The extreme and sudden measure had invited severe criticism from many quarters as people had to stand in long lines to get cash. Many people had also lost their lives in demonetisation related incidents.
There were nearly 1,650 crore Rs 500 notes in circulation at the time when Modi had announced demonetisation. The immediate withdrawal of the notes had left a huge void in notes that were in circulation in the economy. As per reports, 86% of currency in circulation when when demonetisation was announced was in the value of Rs 500 and Rs 1,000 currency notes.
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