The Reserve Bank of India has approved a proposal to introduce Rs 200 notes in the country, Livemint reported on Tuesday. According to the business daily, the central government now needs to sign off on the proposal. Once that is done, the new denomination notes will start being printed around June.
If approved, this will be the second new denomination of currency to be introduced after the government had demonetised Rs 500 and Rs 1,000 notes in November 2016. The Rs 2,000 note had been introduced, but there has been a shortage reported of smaller denominations like Rs 100 because tendering change for Rs 2,000 has proved to be a problem.
After demonetisation, a new version of the Rs 500 note was announced. Reports had said new Rs 10 and Rs 100 notes would also be introduced. RBI chief Urjit Patel had said around Rs 9.2 lakh crore in new notes was introduced into the economy after demonetisation. This was in response to a Parliamentary Committee investigation into how the Centre had handled demonetisation.