Last year, all were shocked when Prime Minister Narendra Modi said in a live telecast that the 500 Rs (old) and 1000 Rs would not work in future. From standing in long queues to understanding the procedure of exchanging notes through banks, Demonetization was not really a great experience for the common people. Now, the news came is that the Reserve Bank of India has cleared the proposal of printing of new notes of 200 Rs (According to a report in livemint.com). The printing of these new notes could start after the month of June this year.
According to the sources, the decision was taken in March at the RBI meeting. These two people (sources) do not want to be identified and aren’t authorized to speak with any media. Once the government officially approves the new denomination, then the process of printing new notes will start anytime after June, said one of the two people. The spokesperson of RBI declined to comment when contacted. This could be a move by the government to introduce new lower value notes to rework the currency mix and change the currency purely, especially after the demonetization. On November 8 last year, the government officially announced the withdrawal of Rs 500 and Rs 1,000 notes, which amounts around 86% of the currency circulation of Rs 17.9 trillion.
After this, RBI replaced these notes with redesigned Rs 500 notes and newly-launched Rs 2,000 notes. The currency in circulation was Rs 13.12 trillion till 24 March, which means still around 27% off pre-demonetization levels. The Indian government is promoting the cashless economy and that’s why digital payments are also increasing rapidly in the country. Digital payment companies like Paytm and Mobikwik has become one of the biggest companies in India, especially after Demonetization. On 13 March this year, the Reserve Bank of India lifted all the cash withdrawal limits. Until now, the central bank has not revealed that how many of old currency notes it has got back from the public. The window of exchanging old currency for a new currency for citizens was between November 8 and December 30.
The Reserve Bank of India (RBI) consists of 14 members, including Governor Urjit Patel, Economic Affairs Secretary Shaktikanta Das, Financial Services Secretary Anjuly Chib Duggal, and four deputy governors of the central bank. The RBI introduced new high notes in the banking system to scrap the 86% of the total currency in circulation through Demonetization so that they can curb on black money and counterfeiting money. We have to at least till June to have the new currency notes of 200 Rs. The Indian Government or RBI would definitely confirm the news when they feel necessary to make it public.