No intention to demonetise Rs 100/50 notes: Government

Dismissing the rumour that Rs 2,000 note is fitted with a chip, PIB tweeted that it is just a figment of imagination.

By: PTI | New Delhoi | Published:November 16, 2016 9:57 pm
Demonetisation, Rs 500 notes, Rss 2000 notes, demonetisation ATM Meanwhile, RBI in a circular asked banks to enforce strictly the provision that anybody depositing more than Rs 50,000 in cash in their bank account has to submit a copy of the PAN card in case the bank account is not seeded with PAN. (Source: Reuters)

Seeking to dispel rumours making the rounds, the government today said there is no intention to demonetise Rs 100 and Rs 50 notes. In a series of tweets, the government described as “myth” a rumour that the Prime Minister will again address the nation to declare Rs 50/100 as invalid currency. “Baseless; no intention of cancelling legal tender status of notes of any other denomination,” PIB said in a tweet. It also described as “myth” the contention that cost of demonetisation is more than the benefits. There is no intention to seal bank lockers and freeze gold and diamond jewellery. On complaints that Rs 2,000 notes are of poor quality and colour comes off, the government said there is no need to worry as this is 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. Dismissing the rumour that Rs 2,000 note is fitted with a chip, PIB tweeted that it is just a figment of imagination. On rumours that people will find other means to circumvent law, it said.

“Enforcement agencies are keeping necessary watch;besides, amendments made also in Benami Transactions Act and information sharing agreements with foreign governments to check black money,” it said. It also clarified that complete secrecy was maintained and there was no leakage of government’s intention to any section.

Meanwhile, RBI in a circular asked banks to enforce strictly the provision that anybody depositing more than Rs
50,000 in cash in their bank account has to submit a copy of the PAN card in case the bank account is not seeded with PAN. “In addition to the above provision, in the same IT Rules, PAN reporting requirements are there for other transactions, which banks need to insist upon,” it said.