New Delhi: Justifying the demonetisation move, the Centre on Thursday told the Supreme Court that substantial amount of banned Rs 500 and Rs 1,000 notes has been deposited in banks and the situation post demonetisation will ease out in next two-three weeks.

In a fresh affidavit filed on Thurday, the Centre also explained the series of steps taken by the Reserve Bank of India and the government to mitigate the hardships of the people, including farmers, by increasing the withdrawal limit of Rs 24,000 per week in savings account and Rs 50,000 per week in current accounts, allowing use of old Rs 500 and Rs 1,000 notes in petrol stations, airports, railway stations, etc. The affidavit said, “It is denied that there was lack of preparedness while introducing this policy or was in ignorance of the RBI recommendation.”

Ahead of Friday’s crucial hearing, the Centre said there are three specific mischiefs, which had serious adverse impact on the Indian economy over the past years, viz fake currency notes, storage of unaccounted wealth in the form of high denomination notes, use of fake currency to finance subversive activities like terrorism, etc. It was found that fake currency notes of Rs 500 and Rs 1,000 to the tune of over Rs 400 crores were largely in circulation and it was found difficult to identify by public in general genuine bank notes from the fake ones and that the use of fake currency notes was causing adverse effect to the economy of the country.