Bored with the 500 and 2000 rupee notes? Get ready for new 200 rupee notes. Yes, you heard it correctly! But, it will not be as stressful as the demonetization which took place in November last year. The reason is there is no replacing notes but the addition of new currency notes. Demonetisation took place in order to stop counterfeit and curb corruption and fake notes. It also led to GDP growth in Asia’s third-largest economy. No doubt, it boosted the use of mobile wallets. You may have become a fan of some wallet or the other, don’t you?
Where it Started.
Before the November 8 demonetisation, there were roughly 1,650 crore pieces of 500 notes in circulation, according to date from SBI research. With demonetisation, there was a large gap in the value of notes in circulation. During demonetisation, withdrawal of larger currency notes such as the Rs 500 and Rs 1000 notes took place. This accounted for around 86% of currency in circulation of Rs 17.9 lakh crore.(Source:The Economic Times)
The introduction of new notes i.e.Rs 2000 and Rs 500 has replenished a very small part of that. As on June 9 this year, the currency circulation is at Rs 14.6 lakh crore, still 18.4% lower than the pre-demonetisation level.
Benefits of introducing Rs 200 notes as currency
- It will replenish the missing module thus filling the void discussed above, which was activated by the withdrawal of old Rs 500 notes.
- It will ease the transactions of citizens(Wow!)
- Lower denomination notes will help in the government’s efforts at restoring the current hassle in the system.
Thus pumping of new currency may ease the re-monetisation process.
New fact about new currency
Another interesting fact about this new Rs 200 notes is that it will be dispensed through banks not ATMs. This is not new, earlier Rs 50 and Rs 10 notes were dispensed through banks. You must be wondering why? There is a cool fact behind. In November last year, re-calibration of ATMs took place in order to generate new notes. Yes, a whole of 2,20,000 ATMs machines were re-calibrated. That is why it took a lot of time to dispense the 500 and 2000 rupee notes. So, doing the same for 200 rupee notes will be tedious, don’t you think?
Want to know more about this new term, ‘re-calibration’? ATMs have three-four drawers, also called cassettes. Each cassette can identify a particular denomination currency note based on given ‘pointers’ only. Banks keep notes in these cassettes. An ATM machine currently dispenses a combination of Rs 2000, Rs 500, Rs 100 depending on the cash available on it. Hope it is clear now.
The RBI has placed an order few weeks ago for the bills. The notes are being printed in printing units run by the government-run Security Printing and Minting Corporation of India Ltd or at printing presses in Mysore (Karnataka) and Salboni (West Bengal) managed by the RBI-owned Bharatiya Reserve Bank Note Mudran Private Ltd to smoothen consumer transactions, Economic Times reported. The authorities are taking extra precaution regarding the security features. The notes are going through different levels of security and quality checks at the government’s press unit at Hoshangabad, Madhya Pradesh, said a source close to the printing process.
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Excited about the look of the new notes? Fake images are viral in Whatsapp but we can only be sure about it when it comes out. Fingers crossed!
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