New Rs200 notes not to be dispensed through ATMs
05 July 2017
The Reserve Bank of India (RBI) will introduce Rs200 notes in the coming months to ease the shortage of lower-denomination currencies, but these notes will not be dispensed through ATMs.
The new Rs200 notes are expected to be in circulation before the end of 2017. However, RBI is unlikely to re-introduce Rs1,000 notes anytime soon.
The new Rs200 notes will be issued through bank branches as in the case of bank notes below Rs50 to avoid fake notes being circulated through ATMs.
The issue of lower denomination notes would help improve money circulation and ease the problem with too many high denomination notes, especially Rs2,000 banknotes.
The new notes are currently in the pre-printing process and are undergoing security and quality checks at government printing presses
RBI is expected to come out with a notification with regard to issuance of new Rs200 bills soon.
The surprise announcement of scrapping all banknotes of Rs1,000 and Rs500 denomination ahs left a big void in the currency holdings of the public and had brought about disequilibrium in the volume and the various currency denominations available with the public.
The demonetisation wiped out over 85 per cent of the cash in circulation in the country where cash used to be (and remains) the main medium of exchange.