The Reserve Bank of India (RBI) is set to introduce Rs 200 notes by end of August or early September, as reported by Economic Times.
The Rs 200 notes aim to bridge the gap between Rs 100 and Rs 500 notes. As quoted by a source of the Economic Times, the RBI believes the Rs 200 notes will become a ‘very popular’ denomination. The launch of these notes will also help to the government to launch a fresh fight against corruption and counterfeit currency.
Chief economist, State Bank of India, Soumya Kanti Ghosh, pointed out in an interview with the publication that the new notes will ease the ‘operational difficulties’ faced by the common man.
Post demonetisation, when Rs 2000 notes were introduced, there were reports of illegal hoarding. When higher denomination notes take up a higher proportion of currency in circulation, it triggers illegal hoarding thereby adding to unaccounted money.
The paper reported that the move to introduce the Rs 200 notes is expected to lessen the problem of unaccounted, untaxed-for cash in the Indian economy.