RBI might issue Rs 200 notes by Dec 2017

To tide over the shortage of lower denomination currencies such as Rs 100 in some parts of country

The Reserve Bank of India (RBI) is in the final process of designing a new Rs 200 note, which is expected to be in circulation latest by December, Business Standard has learnt.

Officials said RBI would issue the new Rs 200 notes to tide over the shortage, in some parts of the country, of lower denomination currencies such as Rs 100.

“It will also help in bigger transactions. You can give change for Rs 2,000 in ten Rs 200 notes rather than twenty Rs 100 notes,” said an official, adding the notes should be in circulation by end-2017.

The person also said there was no immediate plan to re-introduce the Rs 1,000 note.

Officials said the central bank reportedly decided to bring in Rs 200 notes in March, after consulting the finance ministry. 

The notes are going through multiple checks for security and quality at government printing presses.

The shortage of currency notes was triggered by demonetisation announced by the government on November 8, when, in a surprise announcement, Prime Minister Narendra Modi made old Rs 500 and Rs 1,000 notes invalid in one swoop, pulling out of circulation over 85 per cent of cash.