Business Standard

R200 note hits the markets today

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The Reserve Bank of India will launch R200 notes for the first time on Friday, saying it will make it easier for the common man to transact in lower denominati­on “missing link” currency and bring greater efficiency into the system.

The bright yellow coloured R200 notes will hit the market just a day after the finance minister gave goahead to the RBI to issue the new currency bill.

Following the demonetisa­tion of R1,000 and R500 notes last November, the central bank had introduced R2,000 notes and new ~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, R200 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.

According to the new policy on theme-based currency notes, the R200 bill bears motif of Sanchi Stupa to depict India’s cultural heritage. The base colour of the note is bright yellow, RBI said.

In a separate statement, it said that R200 note will provide the “missing link” and ensure optimal mix of currency denominati­ons. India has currency denomina- tions of R1, 2, 5, 10, 20, 50, 100, 500 and 2,000. As such, in the lower end of the denominati­on series, R200 has been the missing link. The RBI had recently introduced R50 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 R200, 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 R200 notes, the problem people have been facing due to high-value R2,000 notes is expected to be resolved.

Recently, the RBI had introduced new fluorescen­t blue notes of R50 bearing the motif of ‘Hampi with chariot’. Among prominent features, the R200 banknote would carry the 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 R200, four angular bleed lines with two circles in between the lines both on the right and left sides.

The reverse side of the note would 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.

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