Hyderabad, Nov 9 (IANS): Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday said re-introduction of Rs 500 notes and introduction of Rs 2,000 notes need elaborate discussions and called for looking at the alternatives.

Naidu tweeted that the central government needs to reassess the step and tread with caution before introducing new denominations..

The Telugu Desam Party (TDP) chief, who had long been demanding that Rs 500 and Rs 1,000 notes be abolished, welcomed the announcement by Prime Minister Narendra Modi.

He termed the government's decision "historic" and said this was a "bold" step towards eliminating corruption.

"TDP has been at the forefront of pushing for this ban on high-value currency notes. This move will change the face of Indian economy," he said.

Naidu last month wrote a letter to Modi urging him to immediately abolish big currency notes and called for making banking transactions compulsory in course of time to curb black money.

He had said abolishing the big currency notes was necessary to check those who are buying votes and misusing the people's mandate.

Terming black money as the root cause for all the evils, Naidu said this could be curbed by abolishing cash and currency transactions and making all transactions through banks compulsory.