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On RBI's ' ₹2000 withdrawal' move, Chidambaram says ‘shall not be surprised if…’
Unlike the November 2016 shock demonetisation, the ₹2,000 notes will continue to be a legal tender.
After the Reserve Bank of India (RBI) announced the withdrawal of the highest value currency notes from circulation, senior Congress leader and former Union minister P Chidambaram took a swipe at the ruling Bharatiya Janata Party (BJP) saying the demonetisation “has come full circle!” The ₹2,000 note was introduced in 2016 after the Narendra Modi-led government abruptly withdrew ₹500 and ₹1000 denominations in what they said was an effort to remove forgeries from circulation.
As the move did create a systemic shortage of cash by taking away 86% of the economy's currency in circulation by value overnight, the government began issuing new ₹500 notes days later, and added the ₹2,000 notes to replenish currency in circulation at a faster pace.
Also Read | Why RBI decided to withdraw ₹2000 notes within 7 years
In a tweet, Chidambaram said the ₹2000 banknote is hardly a popular medium of exchange, calling it a “band-aid” to cover up “the foolish decision of demonetising ₹500 and ₹1000 notes.”
“A few weeks after Demonetisation, the government/RBI were forced to re-introduce the ₹500 note,” the former Union minister wrote. “I shall not be surprised if the government/RBI re-introduced the ₹1000 note as well.”
“Demonetisation has come full circle!” he added.
In another tweet, the Congress leader said, " ₹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!"
Also Read | What will happen to ₹2000 notes after September 30?
The Nationalist Congress Party also slammed the BJP-led Union government over the move.
"What has the government achieved by introducing the ₹2000 note and what is it going to now achieve by withdrawing these notes. Demonetisation was hailed as a big success. If that was the case, what is the reason for the withdrawal of ₹2000 currency notes," asked NCP national spokesperson Clyde Crasto.
The RBI announced the withdrawal of ₹2,000 currency notes from circulation and said existing notes in circulation can either be deposited in bank accounts or exchanged by September 30. The central bank, however, clarified that the ₹2000 banknotes will continue to be the legal tender even after the deadline.
