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BJP's desperate attempt to divert attention, says Siddaramaiah after RBI withdraws ₹2,000 note from circulation
RBI on Friday announced that it has decided to withdraw the ₹2,000 denomination banknotes from circulation but they will continue to remain legal tender.
Congress leader Siddaramaiah on Friday slammed Bharatiya Janata Party (BJP) after the Reserve Bank of India on Friday notified to withdraw ₹2,000 denomination banknotes from circulation and termed it the party's desperate attempt to divert the attention from its failures.
RBI on Friday announced that it has decided to withdraw the ₹2,000 denomination banknotes from circulation but they will continue to remain legal tender.
"Another note ban by @narendramodi. Sad that the @BJP4India govt does not have clarity about their own policies. Why did they introduce ₹2,000 notes in 2016 if they had plans to ban it? This is BJP's desperate attempt to divert the attention from their failures. #NoteBan," said Siddaramaiah in a tweet.
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RBI has advised banks to stop issuing ₹2000 denomination banknotes with immediate effect.
Meanwhile, RBI said that citizens will continue to be able to deposit ₹2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch up to September 30, 2023.
The ₹2000 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 ₹1000 banknotes in circulation at that time.
The objective of introducing ₹2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of ₹2000 banknotes was stopped subsequently in 2018-19, stated RBI.
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About 89 per cent of the ₹2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of four-five years.
The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as of March 31, 2018 (37.3 per cent of Notes in Circulation) to ₹3.62 lakh crore constituting only 10.8 per cent of Notes in Circulation on March 31, 2023.
"It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public," RBI said Friday.
"In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of ₹2000 banknotes into banknotes of other denominations can be made upto a limit of ₹20,000 at a time at any bank starting from May 23, 2023," RBI said.
