Rupee 2000 notes introduced for big transactions: Finance Secretary

Finance Secretary Ashok Lavasa on Wednesday said that government's intention in demonetising is to curb the flow of black money in and out of the system. He added that the Rs. 2000 note has been introduced for big financial transactions.

"The intention is to curb black money, the market would have reacted to any development in same manner,So, lets wait," he said.

"People need money to make big transactions, that is why the Rs 2000 note is introduced," he added.

Lavasa added that the people will face some difficulty initially, but government has adopted proper measures to help them.

In a surprise televised address to the nation, Prime Minister Narendra Modi announced that existing Rs 500 and Rs 1000 notes can no longer be used for any transactions. Soon after Prime Minister Narendra Modi ended his public address there is a huge confusion among people across India as what they must do right now.

As most of the people across India who had to listen to Narendra Modi's public address queue up outside of ATMs to withdraw Rs 400.

Also, Prime Minister Narendra Modi in his public address has appealed to people not to panic saying further that, "your money will remain yours".

As the banks will remain closed on Wednesday, November 9 and will open on Thursday, November 10, the Prime Minister made an appeal to people that they must deposit their money (old notes of Rs 500 and Rs 1000) to post offices and banks starting from Thursday.

Prime Minister Modi in his address also said that the move has been taken to fight "the disease of black money". Whereas the process of depositing money can be continued until December 30, after which people can deposit their old notes to Reserve Bank of India.

Narendra Modi also urged the country to bear with "temporary hardship" in the implementation of the new rule.