Making all efforts to put seized cash into circulation, focus on printing more new Rs 500 notes: Govt

The government has said that the enforcement agencies are making all efforts to bring back the seized currency into circulation to meet the cash need post demonetisation.
seized cash, Rs 500 notes, Govt, Shaktikanta Das Source: FINMININDIA
India TV Business Desk New Delhi December 15, 2016 18:47 IST

Terming the action against illegally accumulated money as “surgical”, the government on Thursday said that the enforcement agencies are making all efforts to bring back the seized currency into circulation to meet the cash demand post demonetisation.

“Actions enforcement agencies are taking on illegally accumulated money is based on specific inputs, surgical action you may call it,” Economic Affairs Secretary Shaktikanta Das told reporters here.  

“Notes seized from illegal accumulations are being put back into the circulation as soon as possible,” he added.  

On the cash crunch, even after 35 days after remonetisation process began, Das said the various wings of government, Reserve Bank of India and banks are working together to ensure that the situation eases out. 

He added that the initial focus was on to supply Rs 2000 notes to replace value that was taken out of the market but the now focus has shifted on printing more of Rs 500 notes.  

“Airlifting of currency will continue wherever necessary. Emphasis on providing cash to rural areas from where reports of inadequate availability of cash are coming in,” he said.  

Talking about the security features of the newly introduced notes, Das said the “possibility of counterfeiting new Rs 500 and Rs 2000 notes is very very less.” 

He added that the new notes are completely indigenous. 

“First time notes were indigenously designed in house with security features, makes notes more secure with less chance of counterfeiting,” he said.

Noting that some banks are not loading enough money in ATMs and giving money to their own customers through branches, Das said that the banks have been asked to keep loading currency in ATMs.


When asked about the connivance of banks in illegally converting old notes into new, Das said,"Don't paint all banks with same brush. The actions which are being taken is on report of banks only. We have already asked private and public banks to strengthten their internal surveillance and vigilance mechanism and report suspicious transactions." 

He added that new notes of Rs 500 and Rs 2000 note worth Rs five lakh crore have been pumped into market. 

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