Exchange limit reduced to stop misuse, new Rs 1k notes will take time: Jaitley

New Delhi: Union Finance Minister Arun Jaitley on Thursday said that that the government has no plans to introduce new notes of Rs 1,000 as of now.

Jaitley explained that the government decided to reduce the exchange limit of scrapped notes to stop misuse of funds.

“1000 Rupee notes will not be reintroduced as of now. Exchange limit of Rs 4,500 over counter reduced to stop misuse of funds,” Jaitley said.

“22,500 ATMs to be re-calibrated today, nearly 2 lakh ATMs exist as of now,” Jaitley added.

Earlier on Thursday, Government lowered the exchange limit for now-defunct 500 and 1,000 rupee notes to Rs 2,000 from the existing cap of Rs 4,500, effective Friday.

Among other measures, it allowed up to Rs 2.5 lakh cash withdrawal from bank account of a bride or groom or their parents for a marriage during the ongoing wedding season.

"To enable larger number of people to get benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow," Economic Affairs Secretary Shaktikanta Das had told reporters.

The over-the-counter exchange of Rs 500/1,000 in return of new currency will be available "once per person till December 30".

"This will enable larger number of people to exchange notes. There is no cash shortage and enough cash is available," he said.

The decision comes a day after the government directed banks to put indelible ink mark on the right index finger of persons to screen them from using the exchange facility more than once.