RBI likely to introduce Rs 200 notes by June 2017: Reports

New Delhi: According to the recent speculations in the financial market the Reserve Bank of India (RBI) has cleared a proposal to introduce banknotes of Rs 200 denomination.

On the conditions of the anoynimity, the officials aware about the development said,"The decision was taken at the RBI board meeting in March last."

"The process of printing the new Rs 200 notes is likely to begin after June, once the government officially approves this new denomination," the official sources said. The RBI spokesperson, however, declined the speculations for now.

It could be recalled that on November 8, the Indian government announced the withdrawal of Rs 500 and Rs 1,000 currency notes, amounting to around 86 per cent of currency in circulation of Rs 17.9 trillion and since then, RBI has replaced these with the new Rs 2,000 and redesigned Rs 500 bank notes.

The government is encouraging digital payments and may not increase currency in circulation to the pre-demonetization level and the reports of Rs 200 denomination notes being introduced are kept on hold for now by the RBI board.

The RBI board has 14 members. Apart from governor Urjit Patel and four deputy governors, the board also has economic affairs secretary Shaktikanta Das and financial services secretary Anjuly Chib Duggal.