After the Reserve Bank of India okayed the proposal of issuing new Rs. 200 notes, printing of the notes has begun at one of the government owned facilities. This is the first time in the history of the Reserve Bank of India that notes of this denomination are being printed.
In November 2016, all the existing of Rs. 500 and Rs. 1000 were demonetized by the government of India in an attempt to curb circulation of fake currency and to put a check on corruption and illegal income. These two denominations together accounted for around 86 per cent of the currency in circulation.
In the process of demonetization, new notes of Rs. 500 were brought into circulation while the notes of denomination Rs. 1000 were totally scrapped. Apart from Rs. 500, new notes of Rs.2000 were also brought into the country’s financial system. However, these new notes failed to replenish the old notes in full. The new notes of Rs. 200 being printed now are expected to fill the gap.
The Economic Times reports that the new currency will undergo different levels of quality and security checks at the press unit owned by government in Hoshangabad, Madhya Pradesh.
The new Rs. 200 notes reportedly have advanced security features. Prevention of counterfeiting is a major concern for the government and appropriate steps are being taken by the authorities to prevent it.
The new Rs.200 note is expected to bring ease to the day-to-day transactions as there are no notes of any denomination between Rs. 100 and Rs. 500 or between Rs. 500 and Rs. 2000.