Govt planning to demonetize Rs 2000 note? What you heard is wrong

Tammy Harvey
August 24, 2017

Currently, there is no denomination between Rs 100 and Rs 500, the introduction of Rs 200 note is likely to make cash transactions smoother.

Ending months of speculation, the finance ministry on Wednesday notified issuing of Rs 200 currency notes, making it a legal tender and paving the way for its circulation. "Soon this note will get added to the bucket of currency notes in India", said Subhash Chandra Garg, economic affairs secretary. Banning these notes, the new Rs 500 and Rs 2,000 notes were introduced.

The fund service, in a notice, said that on the suggestions of the Central Board of Directors of the RBI, "the focal government thus determines the section of banknotes of the estimation of two hundred rupees".

The Reserve Bank has also introduced new fluorescent blue "50 banknotes bearing the motif of 'Hampi with Chariot" that depicts India's cultural heritage. The notes have reportedly gone through multiple checks for security and quality at government printing presses.

The Finance Ministry specified the new currency note in a Gazette notification.

For some time reports of illegal hoarding of the Rs 2000 bank notes and black marketing have come to light after it was introduced dramatically to remonetise the withdrawn currency from the system. "The whole process regarding by when the notes will be printed, RBI will take care of that issue".

Demonetisation, which illegalised the popular Rs 500 and Rs 1000 notes overnight, is largely believed to be the first major step taken to immobilise the black market in Asia's third biggest economy.

"A large number of new currency notes will thwart the operational difficulties which may be faced by a common man", said Soumya Kanti Ghosh, group chief economist at State Bank of India.

Other reports by Ligue1talk

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