Reasons why RBI is introducing Rs 200 notes

The Reserve Bank of India (RBI) will issue Rs 200 notes soon, possibly at the end of August itself, filling the missing link between Rs 100 and Rs 500, and thus facilitating ease of exchange for common public.  

The finance ministry on Wednesday notified the introduction of the new notes. The decision to introduce the new note was taken by RBI board in March.

Introduction of currency notes is done by any central bank based on an assessment of inflation, economic growth, replacement of soiled banknotes, reserve stock requirements, needing to combat counterfeiting but most importantly, to facilitate ease