Centre to introduce new denominations of Rs1000,Rs100 and Rs50 notes to combat black money

NewDelhi,Nov10:FM Arun Jaitley declared that the fight against corruption and black money hoarders will continue as economic measures as he said the RBI has already geared up to release new denominations of Rs1000,Rs100 and Rs50 notes to combat black money.

“Notes of all denominations will be reintroduced with the new design and new features,”, Economic Affairs Secy,Sasikantha Das said.

In the next few months Rs 1000 notes will also be brought in with a new dimension and design, says Shaktikanta Das, Economic Affairs Secretary.

Prime Minister Narendra Modi’s announcement to demonetise Rs 500 and Rs1,000 notes currently in use has caused a panic among the public.  Finance minister Arun Jaitley holds a press conference on the demonetization. Highlights…

The  Initial challenge was we had to reestablish the credibility of a decision-making process as long as Indian economy was concerned.

For any government to function, the leadership is provided by PM and PMO and then different ministries have to act in accordance.

The Decisiveness is the hallmark of this government. Government is not scared to take risks.

One decision was that there were sectors that needed to be opened up for economic growth.

Making sure that state subsidies reach people and therefore rationalised, has been discussed. We implemented that.

It has led to lot of savings, we are still in the process of executing our taxation changes.

A lot is to be covered as far as GST is concerned.

The recent decision of the government to cancel 500,1000 rupee notes, we are trying to ensure that at the requisite replacement is available with people. There is no need to rush in initial days.

I indicated that the banking dept and RBI have taken all necessary steps to keep banks open till the extent necessary. Banks will be open on the weekends.

It is only those with large amounts of undisclosed money who will have to face the consequences under existing laws.

— There will be an impact on small purchases for a few days, till there is adequacy of currency, but it is beneficial in long run.

— I’ve explained the advantages yesterday, but overall I do feel that not withstanding the constraints of global economy, we are doing reasonably well.

— This decision (scrapping of Rs. 500/1000 notes) will impact the spending habits of people.

— There is no prohibition on any sector for dealing through cheques.

— There are some sectors which are cash intensive and therefore there could be some impact on them but over a period of time, it will work out on its own.

— Exchange limits are only for first 2 weeks, in any case whether agricultural transaction is dealt with cash or not, it would be tax free.