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Despite cashless push, India issues 50 and 200 rupees

Categories : Cash connects people, Cash is the most widely used product
August 28, 2017
Tags : ATM, Cash, Demonitisation, Denomination mix, India
India introduces two smaller denomination notes: the Rs 50 and the Rs 200 in order to simplify transactions.
Communication Team / Equipo de Comunicación

The Reserve Bank of India is now issuing new Rs 50 and Rs 200 notes despite its desire to push the country towards cashless payments.

The critical economic situation in the aftermath of the November 9th demonetisation of the Rs 1,000 and the Rs 500, and subsequent introduction of higher denominations (Rs 2,000 and Rs 500), made it hard for citizens to carry out everyday transactions and, consequently, affected the economy. Furthermore, data shows that there is a general decline in usage of digital payments, as cash becomes more accessible. To facilitate transactions, and hopefully boost the economy, the government is now attempting to ease the cash supply by making smaller denominations available.

Because of its size, the Rs 200 is currently not available at cash machines and can only be retrieved at some bank branches. ATM manufacturers are carrying out a number of tests to calibrate the machines in order to make the new denomination accessible nationwide.

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