FM Arun Jaitley says no plans for new Rs 1000 notes and 22,500 ATMs to be recalibrated
New Delhi,Nov17: As chaos continued in Parliament over demonetization of Rs 500 and Rs 1000 notes on Thursday, Finance Minister Arun Jaitley said that the government had no plans to issue new currency notes of Rs 1000 soon.
Notes of Rs 2000 denomination have already been introduced into the market for the first time in India, while new Rs 500 notes were also issued subsequently.
Jaitley also explained that the government decided to reduce the exchange limit of scrapped notes to stop misuse of funds.
“1000 Rupee notes will not be reintroduced as of now. Exchange limit of Rs 4,500 over counter reduced to stop misuse of funds,” Jaitley said.
“22,500 ATMs to be re-calibrated today, nearly 2 lakh ATMs exist as of now,” Jaitley added.
Earlier on Thursday, Government lowered the exchange limit for now-defunct 500 and 1,000 rupee notes to Rs 2,000 from the existing cap of Rs 4,500, effective Friday.
Among other measures, it allowed up to Rs 2.5 lakh cash withdrawal from bank account of a bride or groom or their parents for a marriage during the ongoing wedding season.
“To enable larger number of people to get benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow,” Economic Affairs Secretary Shaktikanta Das had told reporters.
The over-the-counter exchange of Rs 500/1,000 in return of new currency will be available “once per person till December 30”.
“This will enable larger number of people to exchange notes. There is no cash shortage and enough cash is available,” he said.
The decision comes a day after the government directed banks to put indelible ink mark on the right index finger of persons to screen them from using the exchange facility more than once.