INR 200 Note

Reserve Bank of India had spent nearly INR 80 bn on printing new notes, special thanks to demonetization. Nevertheless, over the years, RBI has been spending close to INR 30 bn to replace soil notes and increase the supply in the system. Recently launched INR 200 note is expected to reduce this cost as it will reduce the numbers of notes required for day to day transaction

Above figure depicts, minimum number of notes required to complete the transaction, with or without INR 200 note.

Above figure depicts, change in physical note requirement for various amount transactions using the integer function.

Above chart depicts, RBI will achieve nearly 12% efficiency by introducing INR 200 note. It can reduce regular note printing cost (INR 30 Bn FY16) by INR 3.6 Bn.