Note ban: Arun Jaitley says people will suffer only one or two quarters

the Union Finance Minister said it is difficult to estimate disruption of demonetisation in this quarter
Arun Jaitley : Union Finance Minister

Finance Minister Arun Jaitley said the hardships faced by common masses over the note ban will remain for one or two quarters but its advantages would be long-term.

Talking On the sidelines of the Make in Odisha conclave, the Union Finance Minister said the country has welcomed the decision and it is difficult to estimate disruption in this quarter.

“The effect of demonetisation would remain for one or two quarters, but its effect on the economy would be seen in the long term,” he said.

Thanking Odisha chief minister Naveen Patnaik for supporting the currency ban and the Goods and Services Tax (GST), Jaitley said these have the potential to exaggerate what the Centre and the state are doing.

“The money coming to the banks will be used more fruitfully for the benefit of the economy and together, these two things have the potential to exaggerate what the Centre and the state are doing,” he said.

He also stated that the central government will back Odisha government completely for its Make in Odisha campaign.

“Odisha, a state which conventionally had a very high percentage of people below the poverty line, is now trying to improve upon its growth rate. And its growth rate in recent times has significantly improved. The poverty level has come down,” he said.

Meanwhile, the currency presses in the country stared printing new Rs 500 notes as banks across the country continued to face cash shortage. Reports say the denomination of Rs 500 notes continues to be in short supply as most the cash that banks are receiving are in notes of Rs 2,000.

Jaitley said the security printing of currency is a time-consuming exercise and RBI I is calibrating the release of currency.

Sources said the RBI owned presses in Mysuru, Karnataka and Salboni , West Bengal, are expected to print around 1 billion of the new Rs 500 notes by end of the year. In addition, two government-owned presses at Nashik and Devas are also working on augmenting the supply of Rs 500 notes.