Government formally announces launch of new Rs 200 notes

New Delhi: The Finance Ministry formally announced the launch of the new Rs 200 note on Wednesday. "The central government hereby specifies the denomination of bank notes of the value of 200 rupees," a Gazette notification said.

The new notes will be introduced in market in the beginning of the month of September. "There is no other denomination available between Rs 100 and Rs 500 and RBI is expecting Rs 200 notes to become very popular and that's why it is taking every step to ensure availability of it," an official stated.

The notification has been issued under Section 24 of the Reserve Bank of India Act, 1934, and on the recommendations of the Central Board of Directors of the RBI.

Earlier, Minister of State for Finance Santosh Kumar Gangwar stated that Rs 200 note, printing of which had begun, would be in circulation soon.

The move to introduce the new currency was to increase the circulation of smaller denomination notes.

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An official source stated that the paper for Rs 200 notes was ready in the Mysuru paper mill in June. It was being printed in the RBI printing press.

Post-demonetisation, there have been reports of people facing problems in using the Rs 2,000 note as sufficient quantum of smaller denomination notes of Rs 100 and Rs 500 were not available.

--Inputs from IANS