Wednesday, 23 August 2017

Reasons why RBI is introducing Rs 200 notes

The decision to introduce the new note was taken by RBI board in March




The Reserve Bank of India (RBI) will issue Rs 200 notes soon, possibly at the end of August itself, filling the missing link between Rs 100 and Rs 500, and thus facilitating ease of exchange for common public.

The finance ministry on Wednesday notified the introduction of the new notes. The decision to introduce the new Rs 200 note was taken by RBI board in March.

Introduction of currency notes is done by any central bank based on an assessment of inflation, economic growth, replacement of soiled banknotes, reserve stock requirements, needing to combat counterfeiting but most importantly, to facilitate ease of transactions for the common man.

The optimal system of denominations of currency is worked out on the basis of minimising the number of denominations needed for offering the exact change. There are actually some renowned international research works behind determining the optimal mix of currency notes.(read more)


No comments:

14th BRICS summit to review current global issues, reach key agreements

  At the   14th BRICS summit   which is to be hosted by China in a virtual mode on 23-24 June, the member nations will review the current gl...