In an attempt to ease consumer transactions, the central bank has begun to print bills of 200 rupees which appears to be the last lap of re-monetisation phase. After receiving the order a few weeks ago, one of the government-owned facilities has started the printing the notes of Rs 200 denomination.
“For day-to-day transaction purposes, the introduction of 200 rupee notes will add to the ease of operations,“
Soumya Kanti Ghosh, group chief economist, SBI Group.
This is the third denomination after Rs 500 and Rs 2000 were introduced to curb the problem of black money and counterfeiting. The government wanted to fill the gaps which came following the demonetisation on November 8 when the old Rs 500 and Rs 1000 currency was withdrawn. With the removal of this series from the system, there was a large gap in the value of notes in circulation.
Ghosh added, “A minor part of that has been replenished by 2000 rupee notes and a larger part by the new 500 rupee notes, though not in full. The introduction of 200 rupee note notes will replenish the missing middle, triggered by the withdrawal of the old series of 500 rupee notes.” Lower denomination notes aids the government’s efforts at realigning the currency mix in the system.
Demonetisation ordered the withdrawal of the then existing Rs 500 and Rs 1,000 currency notes, which accounted for about 86% of currency in circulation of Rs 17.9 lakh crore. As on June 9 this year, the currency circulation with the public is at Rs 14.6 lakh crore, still 18.4% lower than the pre-demonetisation level.
According to sources the new 200 notes will carry advanced security features and extra precaution to prevent counterfeiting. Currently, those notes are going through different levels of security and quality checks at the government’s press unit at Hoshangabad (Madhya Pradesh).
If sources are to be believed then the printing of currency notes is done either in printing units run by the government-run Security Printing and Minting Corporation of India Ltd or at printing presses in Mysore (Karnataka) and Salboni (West Bengal), managed by the RBI-owned Bharatiya Reserve Bank Note Mudran Private Ltd.