Union finance minister Arun Jaitley said that from December 31 onwards, the entire currency in circulation will be legitimate, December 30 being the last day to deposit the demonetised Rs 500 and Rs 1,000 notes in banks.
“With effect from tomorrow the entire currency in circulation would be legitimate,” Jaitley said on Friday.
From Saturday, the legitimate currency will include Rs 100 and other lower denomination notes along with the new Rs 500 and Rs 2,000 notes that the Reserve Bank of India (RBI) has printed, he added.
Jaitley refused to give any details on the deposits received in old notes post-demonetisation, saying the data was yet to be tabulated.
“The banks will now have the re-circulated currency, plus what the Reserve Bank of India (RBI) is injecting,” Jaitley said.
The RBI on Friday asked the banks, which have accumulated old notes to deposit it in the office of the central bank or a currency chest by December 31.
The old notes cannot form part of banks’ cash balances from the close of business as on Saturday, the central bank added.
From next week onward, those still holding the scrapped currency can deposit it only with the Reserve Bank of India till March 31, 2017.
Prime Minister Narendra Modi had on November 8 announced that Rs 500 and Rs 1,000 rupee notes would no longer be legal tender.