As confusion over the new currency notes prevail in the country, Finance Secretary Ashok Lavasa today said the 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 the 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 people will face some difficulty initially, but the government has adopted proper measures to help them.
In a surprise televised address to the nation, Prime Minister Narendra Modi announced that the existing Rs 500 and Rs 1000 notes can no longer be used for any transactions, on Tuesday. Soon after his address, there was mass confusion as people rushed to ATMs to withdraw money.
As banks will remain closed on Wednesday, 9 November and will open on Thursday, 10 November, the Prime Minister appealed to people to deposit their money (old notes of Rs 500 and Rs 1000) to post offices and banks starting Thursday.