Yes, you read it right, the Rs 200 note is soon going to hit the market in India to reduce the shortage of lower denominations. The step has come approximately eight months after demonetization, though the central bank board (according to Business Today) had already cleared a proposal in March to introduce Rs 200 note.
Why the new Rs 200 note in India?
One of the major reasons to introduce the new Rs 200 currency note is to ease the consumer. The introduction of the 200 rupee note will make transactions easier. After demonetization, the introduction of Rs 2000 note and at the same time the delay in the availability of Rs 500 note hit the market badly. Though with the proper circulation of Rs 500 note things are better now, still exchanging the bigger notes at small vendors is a task! Triggered by the withdrawal of Rs 500 old currency notes, demonetization resulted in a huge gap in the value of notes.
The introduction of Rs 200 note is expected to restore that gap. Also, the currency in circulation in India less than 500 rupee notes all are of the smaller denomination such as 1, 2, 5, 10, 20, 50 and 100 rupees. The gap between rupee 100 and rupee 500 was too large and 200 rupee note is expected to fill in this gap which may reduce inflation in the country that has increased in the last couple of years.
The 200 Rupee note will not be available in ATMs!
It may raise some eyebrows but the fact is the new 200 rupee note will not be available in ATMs. Similar to Rs 10, 20 and 50, the distribution channel for Rs 200 currency notes will be branches of banks as of now, because recalibrating the ATMs for dispensing 200 Rupee note would be a tedious task. Furthermore, recalibrating approximately 2, 19,980 machines for dispensing new 200 rupee notes through ATMs would take more than a month which would become another nightmare similar to the phase when the new currency notes of Rs 500 and Rs 2000 were introduced.
How much money was in circulation at the time of Demonetization?
As per a report in Business Standard, currency with the public as on November 4, 2016 was reported at Rs 17.97 trillion. Rs 1,000 and Rs 500 notes amounted approximately 86 percent of the total currency in circulation (by value) that was invalidated after Government’s demonetization move on November 8, 2016. To be precise, 45 percent of the currency in circulation was constituted by Rs 500 notes whereas almost 39 percent of the notes were of the Rs 1,000 denomination.
Some interesting facts about Rs 200 Indian Currency?
- This is for the first time in the history of RBI that a 200 rupee is being printed for circulation in the market.
- It was in the Month of April when the picture of Rs 200 note went viral on the social media and was hugely shared on WhatsApp. Though at that time, the authenticity of the note was established.
- The colour of the note is still a surprise.
- The new rupee 200 note is loaded with various security features
Well, with the introduction of Rs 200 currency note there is one question in most of the minds will there be a 1000 rupee note soon?
Source: Business Standard