Govt had demonetised high-value currency in 1978 but it failed, says P Chidambaram

Former Finance Minister P Chidambaram on Wednesday addressed media over Narendra Modi government's decision to scrap Rs 500 and Rs 1000 notes.

Here are the live updates:

#Terrorist financing is exaggerated, small proportion of money may be used for terror activities but figures are exaggerated

#I don't understand why Rs 2000 notes have been introduced when Rs 500/1000 have been demonetised?

#Bulk of this money is legitimate money; Govt and banks owe a duty to people to exchange it quickly

#I don't encourage or support unaccounted wealth or income, but there’s a non-monetised economy, you can't call it black money

#It will be counter productive if people who have legitimate money will be put through inconvenience and harassment

#Empirical evidence tells unaccounted wealth is largely stashed away in construction, jewellery; don't know hw much is in hard cash

#If the purpose of the decision is to curb menace of black money then it deserves our support

#Replacement of new notes with old notes must be done expeditiously with minimal problem to the poor, middle class people

#Govt had demonetised high-value currency before in 1978 and it failed: Former FM P Chidambaram

#Introduction of new series of notes is estimated to cost between Rs 15000- 20000 crore. Hence the economic gains of demonetisation should be at least equal to that amount

#Various Govt considered it but was dropped considering economic gains will be very small & inconvenience will be very large#The test will be how quickly the old notes will be replaced by new when they are legally tendered in banks

#We agree the objectives are sound, but will have to wait and see whether or not they are achieved 

#We supported the decision yesterday but we will have to see if the objectives are achieved