The Reserve Bank on Friday launched Rs 200 notes for the first time in India. The central bank has launched the new note in lower denomination to fulfill the missing link” currency and bring greater efficiency into the system.
The bright yellow coloured Rs 200 notes hit the market just a day after the finance minister gave go-ahead to the RBI to issue the new currency bill.
Following the demonetisation 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 Mahatma Gandhi (new) Series, bearing signature of Urjit R Patel, Governor, Reserve Bank of India from select RBI offices, and some banks,” RBI said in a press release.
As per the new policy on theme-based currency notes, the Rs 200 bill bears motif of Sanchi Stupa to depict India’s cultural heritage.
The base colour of the note is bright yellow, RBI said.
India has currency denominations of Rs 1, 2, 5, 10, 20, 50, 100, 500 and 2000. 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 will carry portrait of Mahatma Gandhi 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 Mahatma Gandhi 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 will carry a Swachh Bharat logo with slogan and the Sanchi Stupa motif, RBI said.
The new note will be in a dimension of 66mmX146mm.
RBI said the introduction of a new currency 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 exchange of value ordinarily in a maximum of three denominations, it added.
Finance Minister Arun Jaitley said yesterday that the government is not considering banning Rs 2,000 notes.