Possibly solving two problems with one stone, Reserve Bank of India has sought approvals from the government to print new currency notes of Rs 200 which will both help consumers in day-to-day cash transactions as well as reduce counterfeiting of higher currency notes.
The demonetisation of old Rs 500 and Rs 1,000 notes and replacement with new currency of Rs 500 and Rs 2,000 resulted in difficulties for people conducting lower denominational cash transactions.
Also, since the value of the notes is high, printing counterfeit currency notes gained rapid popularity since the November 8, 2016 demonetisation announcement. Another step taken by the government to tackle the problem of counterfeit notes is to change the security features of the currency notes every 3-4 years.
RBI has also proposed printing of new Rs 1,000 currency notes.