The Reserve Bank of India (RBI) has cleared a proposal to introduce lower denomination currency notes of Rs. 200 in the market but will restrict its circulation only through banks. To dodge the scarcity of lower denomination in currency, the RBI board in March approved to issue Rs. 200 notes and the printing will start from June this year.
The reprogramming of ATMs took few weeks to recalibrate them with New Rs 500 and Rs 2000 notes during the demonetization phase and this led to much inconvenience for the public. Therefore, the RBI has decided to circulate the Rs. 200 notes only through banks to avoid the delay of dispensing it into the market, similarly like Rs 50 and Rs. 10 notes which are also not circulated through ATM machines.
If RBI exercises to reprogram the ATMs with new Rs 200 notes then it will take over a month’s time to re-calibrate the machines, which would sure be a very tedious and tormenting task. The official said that many people are still reluctant to take Rs. 2000 notes hence it is very imperative to issue such a lower denomination notes to ensure no shortage of notes and upkeep our economy.