RBI likely to release Rs 200 note next month

Those who are still in a daze from the government's demonetisation and consequent remonetisation drives better take note: a Rs 200 bill will soon join the string of banknotes in circulation. Top sources from the North Block have confirmed to India Today TV that the Reserve Bank of India will release the new note as soon as next month.

Also read: RBI to issue new batch of Rs 20 currency notes

"We have already started printing the first batch of 200-rupee notes in June. It takes 21 days for the printing process to complete. So we are on track to meet the deadline to introduce 200-rupee notes by next month," said a source, who is part of the government's investment and currency department.

The new notes will help narrow the demand and supply gap for smaller-denomination bills, say analysts.

Also read: RBI to identify fake notes to reach real figure of demonetised currency

Latest RBI data suggests that of currency worth Rs 15 lakh crore taken off circulation through the government's note ban move, almost 14.5 lakh crore was back in circulation by June this year.

However, according to an SBI report, cash with banks has declined to 5.4% of the currency in circulation from 23.19% pre-demonetisation. With Rs 200 notes pumped into the system, the cash reservoir will be boosted.

"We are operating at full capacity for 500-rupee note production. When the 200-rupee note will be introduced, it will ease currency availability," said a top official from the finance ministry. The Centre's decision last November to abolish Rs 500 and Rs 1,000 notes disrupted the daily lives of hundreds of millions of citizens as banks struggled to swiftly expand the circulation of new bills.

PM Modi had said the demonetisation action was needed to fight corruption and fraud, and cut off financing for attacks by terrorists who target India.

The finance ministry took a decision in March to print the 200-rupee notes. Two Reserve Bank of India printing presses under Bharatiya Reserve Bank Note Mudran Private Limited - an RBI subsidiary that prints banknotes - from Mysore and Salboni are producing them.

The central bank has decided to add additional security layers to the notes in a bid to beat counterfeiters. Already, quality checks have been carried out on the new bills.

 In association with Mail Today