Govt trashes rumours, says no plans to scrap Rs 100, Rs 50 notes

119

The government in a series of tweets, listed the “myths” doing the rounds after Prime Minister Narendra Modi surprisingly announced his decision to scrap Rs 500 and Rs 1000 currency notes a week ago, and presented the contrasting “realities” trying to clearify the confusion created by the myths among the citizens. Pm Modi had additionally announced the introduction of new Rs 2,000 and Rs 500 notes with a different colour, design and new security features.

The government thrashing away all the rumours doing the rounds on Wednesday said there was no intention to seal bank lockers and seize jewellery or to demonetise Rs 100 and Rs 50 banknotes.

The government’s move to pull back and declare these high denomination currency notes as invalid was aimed at rooting out black money and corruption but the move has sparked chaos and confusion across the country, with millions of consumers queued outside banks and ATMs to change a limited number of old notes for new ones or withdraw cash.

In a tweet On Wednesday, the Press Information Bureau (PIB) stated that there was no plan “of cancelling legal tender status of notes of any other denomination”. In another tweet, it said there was no proposal to seal bank lockers and freeze jewellery.

On complaints of poor quality and bleed colour of the Rs 2,000 notes, the government stated it as a security feature.

“Currency notes have a security feature called intaglio printing. The first test for a genuine currency note is to rub it with a cloth; this creates a turbo-electric effect, transferring the ink colour onto the cloth,” it said.

The PIB dismissed the rumours that said that the Rs 2,000 note is fitted with a chip, by tweeting that such an idea was just a “figment of imagination”.

The PIB further tweeted saying that “complete secrecy” was the motto of the government in this dedmonetization move contradicting the allegations of opposition parties which stated that information on the demonetisation move was leaked to certain beneficiaries before the announcement was officially made.

An intelligence report attributed the unprecedented rush to banks and ATMs to a huge gap in demand and supply of currency notes.

The home ministry officials based on a report prepared by the intelligence agencies, said there has not been enough money in circulation, media reported.

ATMs need to be recalibrated said Finance minister Arun Jaitley on Saturday. He further stated that it will take up to three weeks for all two lakh ATMs in the country to be recalibrated.

A government official said it will take one more week to recalibrate half of the cash-vending two lakh ATMs to dispense the new banknote series.