First, there were only speculations about the new Rs 200 note. However, today, the government confirmed that Rs 200 notes will soon be released by the Reserve Bank of India (RBI). Although the government has not specified the exact date of release of Rs 200 notes, some sources said that the new Rs 200 notes could become available at banks and ATMs as early as next week. The government has issued a formal notification regarding the launch of new Rs 200 currency notes. An excerpt from the notification read, “In exercise of the powers conferred by sub-section (1) of section 24 of the Reserve Bank of India Act, 1934 and on the recommendations of the Central Board of Directors of the Reserve Bank of India, the Central Government hereby specifies the denomination of bank notes of the value of two hundred rupees.”
However, the expected release of new Rs 200 notes has started fuelling another speculation that the government may be planning to suck out all the Rs 2000 notes from the economy. The government may not carry out another demonetization, but it could ask the banks to keep the Rs 2000 notes with them and not to give it out to people. This way, the Rs 2000 notes will gradually be flushed out of the system. It may be recalled that the Rs 2000 notes were never part of the government’s plan. But, due to the huge shortage of cash experienced during demonetization, the government had to print this high value note to improve cash circulation in the market.