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Bright yellow Rs 200 note hits the markets today

RBI says it'll make easier for common man to transact in lower denomination missing link currency

Press Trust of India  |  Mumbai 

Rs 200 note, 200 note
The Rs 200 notes will hit the markets just a day after the announcement by FM Arun Jaitley that the govt had given go-ahead to the RBI to issue the new currency bill.

The Reserve Bank of India (RBI) will launch for the first time on Friday, saying it will make it easier for the common man to transact in lower denomination “missing link” currency and bring greater efficiency into the system.

The bright yellow coloured will hit the market just a day after the finance minister gave go-ahead to the to issue the bill.

Following the of Rs 1,000 and Rs 500 notes last November, the central bank had introduced Rs 2,000 notes and new Rs 500 notes. The transition had led to severe cash shortage in the economy and put pressure on low value notes.

“The Reserve Bank of India will issue on August 25, 2017, Rs 200 denomination banknotes in the (new) Series, bearing signature of Urjit Patel, Governor, Reserve Bank of India from select offices, and some banks,” said in a press release.

According to the new policy on theme-based currency notes, the Rs 200 bill bears the motif of to depict India’s cultural heritage. The base colour of the note is bright yellow, RBI said.

In a separate statement, it said that Rs 200 note will provide the “missing link” and ensure optimal mix of currency denominations.

India has currency denominations of Rs 1, 2, 5, 10, 20, 50, 100, 500 and 2,000. As such, in the lower end of the denomination series, Rs 200 has been the missing link. The RBI had recently introduced Rs 50 note with a new look and additional security features.

“To achieve the optimal system of currency that would minimise the number of denominations while increasing the probability of proffering exact change, especially at the lower end of denominations, there is a logical need to introduce the missing denomination of Rs 200, which will make the present currency system more efficient,” RBI said.

Provision of the new denomination, therefore, would facilitate exchange, particularly for the common man who deals with denominations at the lower end, it added.

Now, with the introduction of Rs 200 notes, the problem people have been facing due to high-value Rs 2,000 notes is expected to be resolved.

Recently, the RBI had introduced new fluorescent blue notes of Rs 50 bearing the motif of ‘Hampi with chariot’. Among prominent features, the Rs 200 banknote would carry the portrait of at the centre and the denominational numeral “200” with rupee symbol in colour changing ink — green to blue — on the bottom right on the obverse (front) side of the note, RBI said.

For visually impaired, the front side of the note will have intaglio or raised printing of portrait, Ashoka pillar emblem, raised identification mark ‘H’ with micro-text Rs 200, four angular bleed lines with two circles in between the lines both on the right and left sides.

The reverse side of the note would carry a Swachh Bharat logo with slogan and the motif, RBI said. The new note

will be in a dimension of 66mmX146mm.

RBI said the introduction of a denomination and design is done keeping in consideration various factors like ease of transactions for the common man, replacement of soiled banknotes, inflation and the need for combating counterfeiting.

The optimal system of denominations of currency (coins and notes), RBI said is one that would minimise the number of denominations and concurrently increase the probability of proffering exact change.

"So, what should be the optimal mix of currency denominations? Many countries have opted to use a near variation of the Renard Series, i.e., 1:2 or 1:2.5 ratio between adjacent denominations of currency, which means that the denomination should be twice or two and half times of its preceding denomination," the central bank said.

Such a ratio allows the exchange of value ordinarily in a maximum of three denominations, it added.

Finance Minister said yesterday that the government is not considering banning Rs 2,000 notes.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, August 25 2017. 00:35 IST