Hours after the news of new Rs 200 notes to be released by RBI broke, Finance Minister Arun Jaitley put a rest to the rumours of Rs 2000 notes being phased out by saying that the government has no plan to do so. Arun Jaitley’s comments came at the Cabinet briefing where he said that the Finance Ministry has not held any discussion with the government to phase out the Rs 2000 notes which were released last year in November. “No discussion within Government, of phasing out Rs. 2000 notes,” the finance minister was quoted saying by PIB. The Rs 2000 notes were launched in November 2016 after the Narendra Modi government had decided to stop the circulation of the Rs 1000 notes.
In this meeting, the Cabinet also approved the framework for consolidation of public sector banks. While addressing the media about it, Jaitley said the object is to create strong banks, the experience of consolidation has been positive. “There will be sub categorizations within the OBC list for the purposes of the central Govt employment,” Jaitley added.
Earlier in the day, the government gave its go-ahead to the Reserve Bank to issue Rs 200 notes that will ease pressure on lower-denomination currency bills. The directives were issued by the finance minister through a notification. In this, the ministry said that recommendations of the Central Board of Directors of the RBI, the central government hereby specifies the denomination of bank notes of the value of two hundred rupees.
LIVE: No discussion within Government, of phasing out Rs. 2000 notes: FM @arunjaitley https://t.co/Oi9HQt0hRm
— PIB India (@PIB_India) August 23, 2017
The new Rs 200 notes are likely to be in circulation shortly. PTI reported while citing sources that the exercise of printing Rs 200 denomination notes are being undertaken to further improve the currency situation in the country. So with the introduction of Rs 200 notes, the problem people face due to high-value Rs 2,000 notes would be taken care of.