Daijiworld Media Network

Mumbai, Jul 5: The Reserve Bank of India will soon print Rs 200 notes, which will significantly ease cash transactions.

The demonetisation of Rs 500 and Rs 1000 notes in November 2016, wiped out over 85 percent of cash in circulation. Though new notes of Rs 2000 and Rs 500 were introduced, lack of lower denomination notes caused a cash crunch.

According to a top government official, the printing order has been given. The Rs 200 notes may be released before end of 2017 and will help narrow the supply gap in smaller-denomination currency notes. The decision to introduce Rs 200 notes was taken by the RBI with the consultation of Finance Ministry in March.

According to data by State Bank of India, there were roughly 1,650 crore pieces of Rs 500 notes in circulation prior November. The demonetisation move to curb counterfeiting and untaxed cash created a large gap in the value of notes in circulation.

As of June this year, the currency circulation with the public is at Rs 14.6 lac crore, still 18.4% lower than the pre-demonetisation level. The RBI has highlighted that there are no plans to print Rs 1000 notes.