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In a statement released on Friday, the Reserve Bank of India (RBI) has decided to withdraw Rs 2,000 denomination banknotes from circulation and asked all to exchange them by September 30, 2023.
The Rs 2,000 denomination currency note was introduced in November 2016 following the demonetisation of Rs 1,000 and the old Rs 500 banknotes. According to the RBI, the objective of introducing the Rs 2,000 banknotes was met once currency in other denominations became available in adequate quantities. As such, printing of the Rs 2,000 banknotes was already stopped in 2018-19.
Telugu Desam Party president N Chandrababu Naidu welcomed the move mentioning that he, since long, had wanted the higher denomination currency notes to be abolished. “I welcome the Central Govt and RBI’s decision to withdraw Rs 2,000 denomination banknotes from circulation. I have been professing since a long time to abolish currency notes of higher denomination which is the root cause of corruption, laundering, hoarding and bribing of voters. This will not only boost the economy but also add tremendous value to the efforts of honest individuals who work with integrity for the larger good of people,” Naidu tweeted.
Reacting to the move, Jairam Ramesh, the Congress general secretary communications in-charge, tweeted: “Typical of our self-styled Vishwaguru. First Act, Second Think (FAST). 2000 rupee notes introduced with such fanfare after that singularly disastrous Tughlaqi firman of Nov 8 2016 are now being withdrawn.”
Former Union Minister and senior Congress leader P Chidambaram said on Twitter that he would “not be surprised if the government/RBI re-introduced the Rs 1000 note as well.”
He said: “As expected, the government/RBI have withdrawn the Rs 2000 note and given time until September 30 to exchange the notes. The Rs 2000 note is hardly a popular medium of exchange. We said this in November 2016 and we have been proved correct. The Rs 2000 note was a band-aid to cover up the foolish decision of demonetising Rs 500 and Rs 1000 notes which were popular and widely exchanged currencies. A few weeks after Demonetisation, the government/RBI were forced to re-introduce the Rs 500 note. I shall not be surprised if the government/RBI re-introduced the Rs 1000 note as well. Demonetisation has come full circle!”
Reacting to the move, senior Congress leader Pawan Khera said: “The ghost of 8th nov 2016 has come back to haunt the nation once again. The greatly propagated move of demonetisation continues to be a monumental disaster for this nation. The PM sermoned the nation on the benefits of the new 2000 notes, today when the printing is stopped what happened to all those promises?”
He added, “The government must explain its motive for such a step. The government continues its anti-people and anti-poor agenda. Hope the media questions the government on such a drastic measure and not attribute it to ‘chip shortage’ in the world.”
Delhi Chief Minister and AAP supremo Arvind Kejriwal, too, hit out at the PM Modi-led Central government. “First said that by bringing 2000 note, corruption will stop. Now they are saying that by banning 2000 note, corruption will end. That’s why we say, PM should be educated. Anyone can say anything to an illiterate PM. He doesn’t understand. The public has to suffer,” he wrote on Twitter.
Speaking to PTI, AAP MLA and Delhi vigilance minister Saurabh Bharadwaj said: “I hope the decision was taken by the experts.”
Meanwhile, BJP leaders defended the move.
Former BJP MP Baijayant Jay Panda tweeted his “first thoughts” on the RBI’s decision.
He said that “no one can complain of inconvenience” as “people have until September 30th to turn them in.”
He added, “This is even more so because of the widespread prevalence of simple, easy digital transactions now. Honest, tax paying citizens & businesses should have no issues with this. But what about those who had again started hoarding and dealing in huge amounts of cash, far beyond normal requirements?”
He went on to add that there are rumours “about old-paradigm political parties had once again amassed & stored large hoards of cash in preparation for elections.”
About the same, he said he predicted a “sharp surge in spending by these parties right away, to get whatever value out of their illicit cash before it becomes worthless paper (for they can only turn in or convert legit cash into other denominations)”
BJP leaders have been pushing for the withdrawal of the Rs 2000 note.
On December 12, 2022, Rajya Sabha MP Sushil Kumar Modi had told the Upper House of Parliament: “While Rs 2000 note was introduced by RBI to replace the demonetised Rs 500 and Rs 1,000 notes at a faster pace in 2016, their printing has (been) stopped in the last three years due to several challenges associated with circulation (of the note)… Instances of hoarding and black marketing of Rs 2000 notes are emerging.”
A month earlier, on November 26, former BJP MLA P. Vishnu Kumar Raju requested Shaktikanta Das, the governor of the Reserve of Bank of India (RBI), to withdraw ₹2,000 and ₹500 notes from circulation in phases from the market.
In a letter to the RBI Governor Raju had indicated that there was hoarding of black money by liquor, sand and real estate mafia.
The Rs 2,000 notes were introduced after the Centre’s demonetisation move on November 8, 2016.
Announcing that Rs 500 and Rs 1,000 notes would cease to be legal tenders from midnight of that day, Prime Minister Narendra Modi said: “This is a chance for every citizen to take part in the fight against black money and corruption.”
