RBI’s Mysore print has started printing the new ₹200 bills which are likely to come into circulation next month. The idea is to ease the shortage of smaller denomination notes. According to reports, RBI officials have speeden up the printing process of the news 200-rupee notes. In addition to this, the new batches of ₹500 notes are expected to ease the shortage of ₹2000 notes. But, there is a buzz in the media that Reserve Bank of India (RBI) has stopped ₹2000 notes some five months ago and might not print them again. However, there is no official announcement from the government on the same.
There is a possibility that the government might be planning to gradually pull out ₹2000 notes. One of the officials of RBI said that a total of ₹7.4 lakh crores were printed in the form of ₹2000 notes and that has compensated for the 6.3 billion ₹1000 notes that were withdrawn after the demonetization on 8 November 2016. According to reports, even after eight months post demonetization, there is a drop in the circulation of ₹2000 notes and also the supply of these highest currency notes has also declined from the RBI. The introduction of a higher denomination could not resolve the problem of shortage of ₹1000 and ₹500 notes so its withdrawal from the market may not have much impact.
Talking about the purpose behind the creation of ₹200 notes, there is no clarity. But, if the idea is to propel more number of lower denomination notes, we would have gotten more ₹100 notes and ₹500 notes. Maybe this is an attempt by the government to ease the cash shortage that was being reported in some parts of the country.