₹2,000 note was ‘band-aid’ to cover.......: P Chidambaram
- P Chidambaram added that he will not be surprised if government re-introduces ₹1,000 as well
Former Finance Minister P Chidambaram on Friday reacted to the RBI's decision to withdraw ₹2,000 denomination banknotes from circulation and said that it was an expected move and the ₹2,000 note was a “band-aid” to cover up the “foolish” decision of demonetising ₹500 and ₹1000 notes in 2016. The senior Congress leader also added that he will not be surprised if government re-introduces ₹1,000 as well.
Also Read: What happens to your ₹2000 note now? Read RBI's 15-point explainer here
"As expected, the government/RBI have withdrawn the ₹2000 note and given time until September 30 to exchange the notes. The ₹2000 note is hardly a popular medium of exchange. We said this in November 2016 and we have been proved correct. The ₹2000 note was a band-aid to cover up the foolish decision of demonetising ₹500 and ₹1000 notes which were popular and widely exchanged currencies. A few weeks after Demonetisation, the government/RBI were forced to re-introduce the ₹500 note. I shall not be surprised if the government/RBI re-introduced the ₹1000 note as well. Demonetisation has come full circle!," P Chidambaram said in a tweet.
P Chidambaram said that the ₹2,000 note was never a ‘clean’ note and people used it for black money.
“ ₹2000 note was never a 'clean' note. It was not used by the vast majority of the people. It was used only by people to keep their black money, temporarily!” the former finance minister added.
Reserve Bank of India on Friday announced its decision to withdraw all ₹2,000 notes from circulation. The central bank asked all banks in the country to immediately stop issuing the ₹2,000 notes and the people can deposit ₹2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations up to September 30, 2023.
The RBI said that the ₹2,000 notes were issued after the demonetisation in 2016 to meet the currency requirement of the economy in an expeditious manner. As the other denominations became available in adequate quantities, the objective of using ₹2,000 notes is completed.
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First Published:19 May 2023, 10:12 PM IST
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