New Delhi: The printing of the new Rs 500 and Rs 2,000 currency notes started around six months ago, and utmost secrecy was maintained at all levels to keep the decision to recall the existing denominations of Rs 500 and Rs 1,000 under wraps.
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Top government sources told CNN-News18 that the new series of Rs 2,000 notes reached RBI only two days ago. “Training was given to bankers at all levels over the last six months,” a source said.
The government expects some initial stress after the dramatic announcement by Prime Minister Narendra Modi and is well prepared to handle it, sources said.
Economic Affairs secy Shaktikanta Das shows new Rs 500 note and Rs 2000 note, to be known as Mahatma Gandhi new series of bank notes pic.twitter.com/usQiFimRO2— ANI (@ANI_news) November 8, 2016
The estimate is that the liquidity situation will normalise in 4-6 weeks with enough notes of smaller circulation in currency.
On the brighter side, the government expects that the new move will help increase the quantum of deposits available with banks. Tax collections are also expected to go up, so are transactions with credit cards, sources said.
Earlier, addressing the nation in a surprise move, the PM had said that currency notes of the two denominations were being withdrawn to combat black money, corruption and terror-financing.
“These notes will just be paper from tomorrow,” he said.
Notes and coins of all other denominations continue to be legal tender. There will be no change in any other form of currency exchange, be it cheque, DD, payment via credit or debit cards etc.
Currency notes of Rs 500 and Rs 1,000 can be exchanged in banks and head post offices till December 30, 2016, by producing a valid identity like PAN card, Aadhaar or a Voter ID card. Failing this these notes can be exchanged at a local Reserve Bank of India office till March 31, 2017.
ATMs will not function till November 9 and in some places till November 10. However, some exceptions have been made on humanitarian grounds. Government hospitals will continue to accept 500 and 1,000 rupee notes. Medicines can be purchased with these notes for the next 72 hours.
Prime Minister Modi said that the RBI will issue notes of Rs 500 and Rs 2,000, but will limit notes with higher value.