Govt to bring new design bank note in other denominations: Meghwal

About Rs 370 crore of cash and jewellery has been seized by the Income tax department since demonetisation, says Meghwal

The government on Friday said new design banknotes in other denominations will be introduced in due course.

The Diplomatic Missions have written to convey their "appreciation" for the government's recent effort to make economy "more transparent and as a move that will also have a positive impact on FDI," Minister of State for Finance Arjun Ram Meghwal said in a written reply to the Lok Sabha.

"The bank notes in the denomination of Rs 500 and Rs 2,000 with a new design have recently been introduced. New design bank notes in other denomination will be introduced in due course," he said while replying to a question on whether the government proposes to print new currency notes of Rs 20 and Rs 50.

Since the announcement of the cancellation of legal tender of 500 and 1,000 rupee notes on November 8, the RBI has introduced new 500 and 2,000 rupee notes in the system.

"RBI and the banks have been advised to step up the supply of cash to the public. The availability of cash and issuance of cash to bank branches and post offices on a daily basis is being constantly monitored and necessary rebalancing is bring done for more efficient allocation of banknotes of requisite denominations between different areas," Meghwal said.

He said the government has taken various steps to ameliorate the inconvenience caused to the public.

In a separate reply to a question on whether demonetisation has adversely affected the economy of the country, Meghwal said overall economic growth is dependent on many factors, including the rate of capital formation and savings, availability of infrastructure, an efficiency of resource allocation, money supply and the degree of financial development.

"It is difficult to pin-point the impact of demonetisation on the economy via its impact on the aforesaid factors," he added.

Meghwal, further said that about Rs 370 crore of cash and jewellery has been seized by the Income tax department since the cancellation of the legal tender character of the high denomination bank notes and total undisclosed income admitted before the department is more than Rs 2,500 crore.

"Close coordination is being maintained with other enforcement agencies for action against the offenders as an on-going process which includes searches, surveys, enquiries, tax assessment, levy of penalties and filing of prosecution complaints in criminal courts," he said.