Finance Ministry gives formal go ahead to printing of Rs 200 notes
The Union Government has given a directive to the Reserve Bank of India to print new Rs 200 notes. According to Finance Minister Arun Jaitley, RBI will be deciding the date for issuing the new currency note.
The Union Finance Ministry on 23 August 2017 confirmed the launch of the new Rs 200 note.
The information was formally revealed through a Gazette notification, which stated, “The central government hereby specifies the denomination of bank notes of the value of 200 rupees.”
The notification has been issued under Section 24 of the Reserve Bank of India Act, 1934, on the recommendations of the Central Board of Directors of the RBI.
Besides confirming the launch of the new Rs 200 note, the government also formally announced the release of a new fluorescent blue Rs 50 note. However, this does not indicate demonetisation of the earlier Rs 50 notes, as they would continue to remain as legal tender.
The printing of the new Rs 200 note is already underway and hence, it would be brought into circulation soon. The move aims to increase the circulation of smaller denomination notes, easing the pressure off the existing bills.
Following demonetisation of all ₹500 and ₹1,000 banknotes on 8 November 2017, there have been reports of people facing problems in using the new high-value Rs 2000 note due to insufficiency in the number of lower denomination currency, especially in the Rs 100 and Rs 500 banknotes.