₹2,000 banknotes withdrawal will help curb…: Ex RBI official R Gandhi

Ex-Reserve Bank of India (RBI) Deputy Governor R Gandhi has said that withdrawal of the ₹2,000 banknotes will help in curbing black money to a “great extent”, PTI reported. 

On Friday, the RBI announced the withdrawal of ₹2,000 currency notes from circulation, and existing notes in circulation can either be deposited in bank accounts or exchanged by September 30. The banknotes in ₹2,000 denomination will continue to be legal tender.

Gandhi, who was leading the currency department during the demonetisation of 2016, told PTI that any systemic impact on payments is unlikely because the notes are not used in day-to-day payments.

The Reserve Bank of India (RBI), however, did not say what would be the status of 2,000 notes in private hands after September 30. Earlier, the government had made it an offence to hold the demonetised ₹500 and 1,000 notes after expiry of the deposit deadlines.

The ₹2,000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all ₹500 and ₹1,000 bank notes that were in circulation at that time.

Opposition hit out at govt over withdrawal of ₹2,000 notes

Opposition parties targeted Prime Minister Narendra Modi on Friday over the RBI's announcement on the withdrawal of ₹2,000 currency notes from circulation, with the Congress saying the move was "typical of our self-styled vishwaguru" and his method of "first act, second think". Left parties, including the CPI and the CPI(M), and the AAP also attacked the government over the issue.

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