Jaitley assures nation, says deposits under 2.5 lakh won't be penalized

Union Finance Minister Arun Jaitley on Thursday assured that people depositing smaller amounts less than 2.5 lakh would not attract harassments from the Income Tax (IT) officials, adding that the banks across the country would open on weekends and extend their working hours to ensure that requisite replacement of currency is available to the people.

"It is only those with large amounts of undisclosed money who will have to face the consequences under existing laws," Jaitley said at the two-day Economic Editor's Conference here.

He said that people might as of now think that they are facing problems, but they will definitely benefit from the government's decision in the long run.

"This decision (scrapping of Rs 500/1000 notes) will impact the spending habits of people. We are trying to ensure at the earliest requisite replacement currency is available to people. There is no need to rush in initial days," Jaitley said.

Chief Economic Advisor Arvind Subramanian said the decision by the government would see reduction of wealth as it would lead to transfer of unaccounted wealth and help the government to spend in public sector projects.

"It should be seen as a transfer of this unaccounted wealth from private sector to Government and public sector, which will boost economy," Subramanian said.