Reserve Bank of India (RBI) is planning to introduce banknotes of Rs 200.
The RBI board has already cleared a proposal to introduce Rs 200 notes, and the decision regarding the same was taken in a meeting in March.
The report cited a person aware of the development saying that the process of printing the new Rs 200 notes is likely to begin after June, once the government finally approves this new denomination.
The central bank’s move to introduce lower denomination notes comes in the backdrop of the government’s move to rework the currency mix.
Last month, RBI also started field trials of plastic notes of Rs 10 as plastic notes are expected to last longer than cotton substrate based banknotes.
If introduced, Rs 200 will be the second new denomination to be introduced after the Rs 2,000 notes.
Some media reports have also claimed that the central bank is planning to reintroduce Rs 1,000 notes with enhanced security features. However, RBI had in the past categorically rejected the introduction of Rs 1,000 banknotes.
In order to check counterfeiting of currency notes, the government has planned to change security features of higher denomination banknotes Rs 2,000 and Rs 500 every 3-4 years in accordance with global standards.
The move comes in the wake of recovery of a large amount of fake Indian currency notes in last four months after demonetisation.