1. Rs 500, Rs 1,000 notes ban: “No need to rush in initial days,” says FM Arun Jaitley

Rs 500, Rs 1,000 notes ban: “No need to rush in initial days,” says FM Arun Jaitley

Finance Minister Arun Jaitley, speaking at the inauguration of 2-day Economic Editors' conference-2016, reacted to the long queues in banks across India to exchange banned Rs 500 and Rs 1,000 currency notes today.

By: | New Delhi | Updated: November 10, 2016 1:04 PM
arun-jaitley-reu-1 Jaitley then spoke about the crux of the policy decision to demonetise high value currency notes. (Source: Reuters)

Finance Minister Arun Jaitley, speaking at the inauguration of 2-day Economic Editors’ conference-2016, reacted to the long queues in banks across India to exchange banned Rs 500 and Rs 1,000 currency notes today – there is chaos in every bank with people desperately looking to get rid of the currency that is no longer longer being accepted in most establishments denying them the opportunity of purchasing even basic necessities of daily life. Jaitley looked to calm people down and said that the NDA government has “ordered banks to take all the action required to ensure people do not get uneccessarily inconvenienced.” He added, “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. Banking dept & RBI has taken some measures & extended their working hours, banks will be open on weekends as well. We are trying to ensure at the earliest requisite replacement currency is available to people; believe that no need to rush in initial days.”

Jaitley then spoke about the crux of the policy decision to demonetise high value currency notes. He said, “It is only those with large amounts of undisclosed money who will have to face the consequences under existing laws.”

Jaitley said the government’s policy initiative was for the good of the country and said, “We have endeavoured our best to make as many decisions as possible through a large consensus route. For few days people might think that they are facing problems, but in long run they will definitely benefit. This decision (scrapping of Rs 500/1000 notes) will impact the spending habits of people.”

However, with the Opposition parties not willing to give-in on the issue, Arun Jaitley indicated that the Narendra Modi government will not be deterred from taking tough decisions. He said, “One of the initial challenges before our govt is that we have to re establish our decision making power.”

Speaking to the press about currency demonetising case, CEA Arvind Subramanian said, “Instead of seeing it as a reduction of wealth, it must be seen as transfer of unaccounted wealth. It should be seen as a transfer of this unaccounted wealth from private sector to Govt and public sector, which will boost economy.”

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