Union Finance Minister Arun Jaitley on Wednesday said that the decision to discontinue existing notes of Rs 500 and Rs 1000 will give a long term advantage to the economy. He said in a press-conference that he would appeal to the masses to bear the inconvenience.

The finance minister said that the state will benefit from the move in the longer run. He said it was a big move towards cashless economy.

Jaitley said the decision will change the way people keep their money. He added that the high denomination notes account for 86 per cent money in circulation. And this plays a huge role in black money, terrorism and counterfeit activities.

Earlier, Arun Jaitley had said that depositing old Rs 500 and Rs 1000 will not make people immune to the laws of the land regarding black money.

“But it should be clear that it is no immunity scheme. This (deposit) does not provide any relief from taxation. The law of land will apply (on source of fund),” PTI quoted him as saying.

“If the money is legitimate which had been previously withdrawn from bank or earned legally and saved and had been disclosed, there is nothing to worry about,” he added.

Prime Minister Narendra Modi on Tuesday stunned the nation by announcing that Rs 500 and Rs 1000 notes would be deemed invalid from the midnight of November 8. He announced that all the invalid bank notes will be accepted in post offices and banks from November 10 to December 30. New notes of denomination 500 and 2000 would be issued.