RBI clears proposal to introduce Rs 200 notes, report

RBI

New Delhi, March 4: The Reserve Bank of India has cleared a proposal to introduce new domination of Rs200 currency notes reported Mint on Monday.

As per the report, the official sources revealed that the board of RBI took the decision in March and the process of printing new Rs200 bills is likely to begin after June.

The proposal awaits official approval from the government said the sources.

However an RBI spokesperson declined to comment on the issue.

Since November 8, when Prime Minister Narendra Modi had announced demonetisation of Rs 500 and Rs 1000 currency notes, which comprised of 86% of currency in circulation of Rs17.9 trillion, this would be the second bill being introduced in the system.

RBI had earlier introduced Rs2,000 notes and replaced the existing Rs500 notes with the new ones. Till 24 March, currency in circulation was Rs13.12 trillion, which is 27% less than the levels of pre-demonetisation levels. Few reports even suggested that government is mulling to not introduce cash at par with previous levels as it wants to encourage digital payments.

So far, the central bank has neither revealed the total amount of old currency received by public nor it has commented on the levels it intends to maintain in circulation.

The board of RBI has 14 members, including governor Urjit Patel, four deputy governors, economic affairs secretary Shaktikanta Das and financial services secretary Anjuly Chib Duggal.

Meanwhile RBI Deputy Governor NS Vishwanathan at a recent event in Kumbakonam, Tamil Nadu had said:  Presently RBI has no idea to introduce currencies of new denominations. The central banking institution wants to encourage cashless transactions, which are helpful to the people.

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