RESERVE BANK OF INDIA

Press Releases

Date : Aug 25, 2017

The Reserve Bank of India introduced the ₹ 200 denomination notes today. Introduction of this denomination is expected to facilitate exchange transactions for the common man and provide complete series of denomination for transactions at the lower end. These notes are available only through select RBI offices and banks as is normal when a new denomination of notes is introduced and the supply increases gradually. However, the production of these notes is being ramped up by the currency printing presses, and over time as more notes are printed, it will be distributed across the country through the banking channels and will be available for public in adequate quantity.

Jose J. Kattoor
Chief General Manager

Press Release : 2017-2018/545


Date : Aug 24, 2017
Reserve Bank says introduction of ₹ 200 notes will facilitate ease of transactions

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.

Providing the Missing Link

The optimal system of denominations of currency (coins and notes) is one that would minimize 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. Such a ratio allows exchange of value ordinarily in a maximum of three denominations. In India, we have currency denominations of ₹ 1, 2, 5, 10, 20, 50, 100, 500 and 2000. As such, in the lower end of the denomination series, ₹ 200 is the missing one.

Ease of Facilitating Exchange

To achieve the optimal system of currency that would minimize 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 ₹ 200, which will make the present currency system more efficient. Provision of the new denomination, therefore, would facilitate exchange, particularly for the common man who deals with denominations at the lower end.

Jose J. Kattoor
Chief General Manager

Press Release: 2017-2018/528

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Category : Fema / RBI (3523)
Tags : RBI Notifications (1993)

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