April 04, 2017

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Another new note, this time for Rs 200, from RBI on its way?

Written By Admin on Apr 4, 2017 | April 04, 2017



Are you tired of receiving higher denominations of Rs 2,000 and Rs 500 notes? Or are you still grappling under the effects of demonetisation where Rs 100 notes are a rare sight at Automated teller machines (ATMs)? Worry no more —The Reserve Bank of India (RBI) has cleared a proposal to inject Rs 200 notes around June, 2017.

The development comes after anonymous sources revealed that the decision was taken at the RBI board meeting in March, Live Mint reported. 

The move comes against the backdrop of government’s aim to rework the Indian monetary system. An RBI spokesperson declined to comment.

Even though the RBI lifted all cash withdrawal caps from ATM and banks on March 13, 2017, operators say there is a dearth of lower denomination banknotes. 

The RBI board has 14 members, including Urjit Patel, four deputy governors, Economic Affairs Secretary Shaktikanta Das.

Narendra Modi government's surprise move on November 8 to scrap Rs 500 and Rs 1,000 notes has posed some temporary trouble for consumers in a cash-dominant economy like India, putting 86 per cent of the currency out of circulation. 

RBI Governor Urjit Patel later announced that Rs 4 lakh crore (19.1 billion notes) had been injected into the system. As on 24 March, currency in circulation was Rs 13.12 trillion, the reported added. 

Even by a conservative estimate, there was a minimum of Rs 2.5 lakh crore excess cash before November 8, 2016 in financial transactions, it said. 

The process of demonetisation has opened up huge potential for digital channels. PoS machines, m-wallets and mobile banking are the major available channels for digital transactions. 

There has been an increase of 584 per cent in digital transactions done through the Unified Payments Interface (UPI) since demonetisation in November last year.

The government is also keen to increase transactions through digital payment methods to 25 billion this year to reduce black money and fight shadow economy.

Business Standard.
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