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Demonetisation Live: The Move Will Advance India Into a Cashless Economy, Says Arun Jaitley

Prime Minister Narendra Modi led NDA government on Tuesday scrapped the existing currency denominations of Rs 500 and Rs 1,000 to combat black money, corruption and terror-financing.

News18.com | November 09, 2016, 17:38 IST
Demonetisation Live: The Move Will Advance India Into a Cashless Economy, Says Arun Jaitley
New Delhi: Former Finance Minister P Chidambaram on Wednesday said that if the purpose of demonetisation of higher notes is to curb black money, than it deserves support.

Addressing a press conference, Chidambaram said, “We agree the objectives are sound, but will have to wait and see whether or not they are achieved. If the purpose is to curb black money menace, than it deserves our support.”
Nov 09, 2016 17:38 (IST)
Nov 09, 2016 17:23 (IST)
Nov 09, 2016 17:21 (IST)
Nov 09, 2016 17:21 (IST)
Nov 09, 2016 17:17 (IST)

There is no chaos or disruption, and if inconvenience prevails for a short period, we will try to resolve it: FM Arun Jaitley

Nov 09, 2016 17:16 (IST)

There is no co-relation of this decision to that of elections but if this makes election costs cheap, it is good: Arun Jaitley

Nov 09, 2016 17:13 (IST)

There is a sense of satisfaction among honest tax payers to what is happening: FM Arun Jaitley

Nov 09, 2016 17:09 (IST)

Maharashtra Govt decides that all State roads will be toll tax free till 11th November midnight. 

Nov 09, 2016 17:03 (IST)

Today the high denomination notes account for 86%, which had a huge role in black money, terrorism and counterfeit activities: Arun Jaitley

Nov 09, 2016 17:03 (IST)
Nov 09, 2016 17:02 (IST)

Government and revenue department monitoring the situation, reports are exaggerated & those indulging in this running high risk: FM Arun Jaitley on money conversion

Nov 09, 2016 17:01 (IST)
Nov 09, 2016 16:53 (IST)

Long term advantage to the economy are so significant that we would appeal to the people to bear the relative minor inconvenience: FM Arun Jaitley

Nov 09, 2016 16:52 (IST)

This decision is of significant advantage to the economy, State will also benefit from this: FM Arun Jaitley

Nov 09, 2016 16:52 (IST)
Nov 09, 2016 16:52 (IST)

Toll across National Highways to suspend till midnight of 11th Nov to facilitate smooth traffic movement: Union Minister Nitin Gadkari

Nov 09, 2016 16:51 (IST)

It is huge step towards cashless economy: Finance Minister Arun Jaitley on Govt scrapping Rs 500/1000 notes

Nov 09, 2016 16:51 (IST)
Nov 09, 2016 16:50 (IST)

The currency which is already in market out of which how much get backs to the bank will be known with the course of time. The complete decision can bring a few difficulties. Government has already given a few exceptions. Some more clarifications are needed to be made. Metro Rail Tickets, Toll Plaza, Pharmaceutical Shops on doctors prescriptions, ASI Monument tickets are the additions added to it: FM Arun Jaitley 

Nov 09, 2016 16:48 (IST)

There might a little inconvenience in replacement, to minimise that Govt took decision to give a window of 72 hours to people: Arun Jaitley

Nov 09, 2016 16:47 (IST)

This one decision will change the course of the way people spend and keep their money: FM Jaitley

Nov 09, 2016 16:47 (IST)
Nov 09, 2016 16:46 (IST)

Setback to parallel black money economy because a lot of currency operating outside system will now have to get in to banking system: FM Arun Jaitley

Nov 09, 2016 16:46 (IST)

A number of steps have been taken to curb the menace of black money, to track 'benami' transactions: FM Arun Jaitley

Nov 09, 2016 16:45 (IST)
Nov 09, 2016 16:45 (IST)

Finance Minister Arun Jaitley addresses the media over Govt's decision to scrap Rs 500/1000 notes.

Nov 09, 2016 16:17 (IST)

PM's bold and decisive step has given effective direction to efforts for establishing a corruption-free system: L K Advani

Nov 09, 2016 15:49 (IST)

We agree the objectives are sound, but will have to wait and see whether or not they are achieved: Chidambaram

Nov 09, 2016 15:49 (IST)

The test will be how quickly the old notes will be replaced by new one: Chidambaram

Nov 09, 2016 15:45 (IST)

Demonetised high-value currency was done before in 1978 but it was a failed move: Chidambaram

Demonetisation Live: The Move Will Advance India Into a Cashless Economy, Says Arun Jaitley
In this file photo, people wait to withdraw and deposit their money at an ATM kiosk in Kolkata. (Photo: Reuters/Rupak De Chowdhuri)

“Now, the challenge is how quickly the old notes will be replaced by new one. Empirical evidence tells unaccounted wealth is largely stashed away in construction, jewellery; don't know how much is in hard cash,” he added.

“We supported the decision yesterday but we will have to see if the objectives are achieved. Replacement of new notes with old notes must be done expeditiously with minimal problem to the poor, middle class people,” the former finance minister said.

“It was done before in 1978 but it was failed. Various government considered it but was dropped considering economic gains will be very small and inconvenience will be very large,” he said.

"I don't encourage or support unaccounted wealth or income, but there’s a non-monetised economy, you can't call it black money," he said.

Prime Minister Narendra Modi led NDA government on Tuesday scrapped the existing currency denominations of Rs 500 and Rs 1,000 to combat black money, corruption and terror-financing.

The move came as surprise for many and triggered a political controversy with Congress leaders accused Modi of acting like “Tughlaq”. “He is working like a modern day Tughlaq,” a Congress leader Manish Tewari said.

The Prime Minister, However, clarified that the move is to break the grip of corruption and black money. “We have decided that the 500 and 1,000 rupee currency notes presently in use will no longer be legal from Tuesday midnight,” Modi said.

A day after the notification, there are concern among people about replacing larger denomination banknotes for new ones once they expired.

Across India, serpentine queue of people were seen standing in front ATMs to withdraw/deposit money. Some were lucky, while some left in disappointment after ATM machines stopped working in many areas.

As per government directives ATMs will not function till November 9 and in some places till November 10. Exceptions have been made on humanitarian grounds at government hospitals.

The notes can be exchanged in banks and head post offices till December 30, 2016, by producing a valid identity card.

These notes can also be exchanged at a local Reserve Bank of India office till March 31, 2017.

Finance Secretary Ashok Lavasa, said, "The new high-security Rs 500 and Rs 2,000 currency notes will be available in all the ATMs across India from November 11 onwards."

“There will not be any problem as it will be available from Nov 11 in all ATMs. RBI to closely monitor fresh notes that would be issued. Cash withdrawal restrictions to ease once supplies of new Rs 2,000 and Rs 500 notes improve," he said.

Rs 500 and Rs 1000 notes which will be discontinued from Tuesday midnight.

Here is the latest update on Modi’s demonetisation policy a day after its implementation.