KOLKATA MUMBAI: Reserve bank of India appears to be giving maximum emphasis on how to avoid the possibility of an unlawful trade of currency notes as it prepares to introduce Rs 200 denominated bank notes for the primary time in records.
On Wednesday, the Finance Ministry issued a notification inside the Gazette of India which said,” In exercise of the powers conferred by sub-section (1) of section 24 of the Reserve bank of India Act, 1934 and on the tips of the relevant Board of administrators of the Reserve financial institution of India, the important authorities hereby specifies the denomination of bank notes of the price of two hundred rupees”.
RBI is probable to put the proposed Rs 200 bank notes in movement by the give up of August or in the first week of September, according to human beings within the recognise. most importantly, it’s miles taking all steps to forestall black advertising and is constructing a stack of about 50 crore notes of the brand new denomination initially so there’s no scarcity or possibility of unlawful alternate, sources said.
“There may be no other denomination available among Rs one hundred and Rs 500 and RBI is looking ahead to Rs 200 notes to grow to be very popular and that is why it’s miles taking each step to make certain availability of it,” the source said.
RBI did no longer reply officially to ET’s queries until time of going to press. “a big range of recent forex notes will thwart the operational problems which can be confronted by using a not unusual man,” said Soumya Kanti Ghosh, organization leader economist at nation financial institution of India.
There were reviews of illegal hoarding of the Rs 2000 financial institution notes and black advertising and marketing after it turned into introduced dramatically to remonetise the withdrawn currency from the system. The plan to introduce the Rs 200 forex notes is in tandem with the wider workout to stop counterfeiting and curtailing untaxed cash in Asia’s third-largest economic system.
“If the proportion of higher denomination notes is big inside the general forex in the circulation, it incentivises hoarding and generation of unaccounted cash,” Ghosh stated.
“Advent of Rs 200 notes will serve purposes: to facilitate cash usages from a transaction reason attitude, and will increase the percentage of smaller denomination notes in the general forex flow.” There had been 1,717 crore notes of Rs 500 and 686 crore ofRs 1,000 before the Centre introduced demonetisation.
In accordance an estimate through SBI economic studies, the percentage of higher denomination notes (Rs 500 and Rs 2,000) has come right down to approximately 70% consistent with to the overall percentage from 86 in step with cent earlier than the us of a’s forex switch programme.