New Rs 500, Rs 2,000 notes at ATMs from Friday: Finance Secretary

Amid uncertainty over ATMs being able to disburse large quantities of Rs 100 notes when they reopen on Friday, Finance Secretary Ashok Lavasa clarified on Wednesday that new currency notes of Rs 500 and Rs 2,000 value will also be available for people to withdraw.

The confusion arose after Prime Minister Narendra Modi on Tuesday night announced the demonetisation of Rs 500 and Rs 1,000 notes, following which people found it hard to get hold of Rs 100 notes for transactions.

"There will not be any problem as it (Rs 500 and Rs 2,000 notes) will be available from November 11 in all ATMs," Lavasa said.

The government had already announced on Tuesday that while ATMs will be shut for two days, once they reopen on Friday, a person can withdraw up to Rs 2,000 per day through a single card till November 18.

Thereafter, the limit will be increased to Rs 4,000 per day.

"The Reserve Bank will closely monitor the fresh notes that will be issued. The cash withdrawal restrictions will ease once supplies of new Rs 2,000 and Rs 500 notes improve," Lavasa added.

As per data available with the Reserve Bank of India (RBI), Rs 17,54,000 crore worth of currency is in circulation in India, out of which 45 per cent is accounted for by Rs 500 notes and 39 per cent by Rs 1,000 notes.

In other words, Rs 16,32,000 crore worth of currency stands demonetised.

--IANS

ap/bg/vt