Rs 200 notes may come into circulation but only through banks, not ATMs: report
Lower denomination Rs 200 banknotes may soon come into circulation after the Reserve Bank of India’s (RBI’s) board gave the go-ahead to print them. However, the may only be available through banks like Rs 10, 20, and 50 notes and not through ATMs.
According to a report by The Hindustan Times which first reported the news, the government is planning to restrict the circulation of Rs 200 notes through banks to avoid recaliberation of ATMs which had only recently caused chaos when they had to be made ready for the Rs 2000 and new Rs 500 notes.
It said that the lower denomination Rs 200 notes were being proposed to plug the crunch felt in the economy because of low acceptance of Rs 2000 notes.
The HT report quoted an unnamed senior banking official saying that adding Rs 200 notes to ATMs would mean recaliberating 2,20,000 ATM machines in the country which may bring back the nightmares of demonetization.
On November 8, 2016, in a televised address, Prime Minister Narendra Modi decommissioned the old Rs 500 and Rs 1000 bank notes as legal tender. The RBI later issued new Rs 500 and Rs 2000 notes. However, the recaliberation of ATMs took months, thanks to the different size of the new bank notes, leading to serpentine queues outside banks.
- Banking Sector
- Narendra Modi
- Reserve Bank of India
- Rs 2000
- Rs 200