Months after the scrapping of Rs 500 and Rs 1,000 denomination notes, the Reserve Bank of India (RBI) has cleared a proposal to introduce notes of Rs 200 denomination, news reports said.
A decision to start the process of introducing the new denomination notes was taken by the central bank in a meeting held in March, The Economic Times reported.
Besides, sources within the Reserve Bank told Livemint:
The process of printing the new Rs 200 notes is likely to begin after June, once the government officially approves this new denomination.
If Rs 200 banknotes are introduced, it would be the second new denomination to be circulated after the Rs 2,000 notes.
The decision by the government to introduce lower denomination notes comes after Prime Minister Narendra Modi’s move to demonetise higher currency notes in an attempt to fight the accumulation of black money, amongst other reasons.
After demonetisation of old Rs 500 and Rs 1,000 banknotes, the RBI’s currency chests had received an amount of Rs 12.44 lakh crore in the form of these junked notes, as of 10 December 2016.
The RBI will soon also issue Rs 10 denomination notes with enhanced security features.
The RBI said on 9 March that the banknotes in the Mahatma Gandhi series 2005 will carry an inset letter 'L' on both number panels and bear the signature of RBI Governor Urjit Patel.
(With inputs from PTI)
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