RBI Gets Finance Ministry Nod To Issue Rs 200 Notes

The government on Wednesday gave its approval to the Reserve Bank of India to issue Rs 200 notes, in a bid to ease pressure on lower-denomination currency bills.

The Ministry of Finance notified the introduction of Rs 200 on the recommendation of Central Board of Directors of the RBI, according to an official gazette. The timeline for introduction of these notes will be indicated by the central bank, the notification said.

The RBI also recently introduced a new fluorescent blue Rs 50 banknotes bearing the motif of 'Hampi with Chariot' that depicts India's cultural heritage.

The government, after it invalidated old Rs 500 and Rs 1,000 notes in November last year, introduced high-value Rs 2,000 and new Rs 500 currency notes, as part of its remonetisation efforts. The introduction of smaller denomination notes is likely to bridge that gap.

In March, RBI Deputy Governor Viral Acharya had said that the level of currency in circulation will be slightly lower than that during the pre-demonetisation period. “It will be slightly lower, but it is in that ballpark,” he had said.