Demonetisation: 50% of invalid notes to be replaced by Dec end; printing of Rs 500 notes increased

Economic Affairs Secretary Shantikanta Das said the supply of notes situation post demonetisation was steadily improving and there sufficient stock of Rs 500 notes available now. He said 50% of invalid notes will be replaced by December end.

Addressing a news conference, Das said additional Rs 80,000 crore of Rs 100 notes have been circulated since November 8.

“Total number of notes in lower denominations of Rs 100 and below supplied in last five weeks is three times of what RBI supplies in an year,” said Das.

“Printing of Rs 500 notes has been significantly increased. Initial focus was to supply Rs 2000 notes to replace value that was taken out of the market. Now focus is on printing more of Rs 500 notes,” said Das during a news briefing.

Das informed there are 2,20,000 ATMs and more than two lakh ATMs have already been re-calibrated.

He said the government is ensuring that enough cash is with district co-op banks and efforts are being made to supply more cash to rural areas, especially where there is acute shortage.

“Government and the RBI are working in tandem to handle cash crunch. We continue to airlift new bank notes wherever it is necessary,” said Das.

Meanwhile, talking about counterfeiting of notes, Das said it was for the first time notes were indigenously designed in-house with security features.

“This makes notes more secure with less chance of counterfeiting and possibility of counterfeiting new Rs 500 & Rs 2000 notes is very less,” said Das.

Various cases of money laundering and fake accounts have surfaced and I-T department officials have conducted various raids across India to seize new and old currency notes.

“Banks have further tightened their surveillance mechanisms. We are conducting data mining to spot money laundering. Enforcement agencies have stepped up their mechanisms,” said Das.

Das said enforcement agencies are taking action on illegally accumulated money based on specific inputs. “You can call it surgical action,” said Das.