Around 50 crores notes of Rs 200 will be printed to avoid lack of notes and possibility of an illegal trade.
A year ago in November, the government had demonetised the old 500 and 1,000 rupee notes.
The central bank's plan to add Rs 200 denomination note into circulation is expected be a big relief as it gets hard at times to find change for Rs 500 note.
The government is not considering banning Rs 2,000 notes while the Reserve Bank of India (RBI) will decide when to issue the new Rs 200 note that has been notified, Finance Minister Arun Jaitley said on Wednesday.
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These notes are likely to be circulated by the end of August or in the first week of September.
The Reserve Bank of India (RBI) had reportedly made a decision to bring in the Rs 200 notes in March, after consulting with the Finance Ministry.
Rs 50 note is flouroscent blue in colour.
The Finance Ministry specified the new currency note in a Gazette notification. "The government is also preparing to bring in laws to take penal action against hoarders of the new Rs 2,000 note", says a report quoting people in the know of the development. The notes have reportedly gone through multiple checks for security and quality at government printing presses.
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"Now, they brought Rs 2,000 and Rs 500 notes but they too should be scrapped", Naidu, who heads a panel of chief ministers on digital economy, had said.
This exercise of printing Rs 200 denomination notes is being undertaken to further improve the currency situation in the country, sources had told PTI.
For some time reports of illegal hoarding of the Rs 2000 bank notes and black marketing have come to light after it was introduced dramatically to remonetise the withdrawn currency from the system.
Rs 200 Note Coming Soon But Won't Be Available on ATMs.
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