While there is no co-relation between scrapping of higher denomination currency notes with elections, but if this move makes poll costs cheap, it is good, said finance minister Arun Jaitley.

Addressing the media in Delhi on Wednesday over the decision to do away with Rs 500 and Rs 1,000 currency notes, the minister stressed that there would be significant long term advantages to the economy and said that the government is taking various initiatives to make India a cashless economy.

“There is no chaos or disruption, and if inconvenience prevails for a short period, we will try to resolve it,” he added.

He said the decision to ban currency notes of Rs 500 and Rs 1,000 denomination will impact the black economy.

The Morarji Desai government, in 1978, had also banned high denomination currency notes to curb black money.

Jaitley said that there cannot be any comparison between the two as the size of the economy and black economy has grown.

The minister said there is adequate currency for replacement of the bank notes that stand withdrawn and it will be easily available at all banks and post offices in 2-3 weeks.

He denied rumors of GPS-enabled chip in new currency notes. He said reports of people profiteering from converting withdrawn currency notes into lower denominations are exaggerated.

Jaitley said that there is a sense of satisfaction among honest tax payers to what is happening.