NEW DELHI: Prime Minister Narendra Modi was not in favour of Rs 2000 notes coming into circulation however reluctantly agreed to it after he was informed that there was an absence of capability to print smaller forex notes as demonetisation needs to be achieved in a restricted time, Nripendra Misra, former Principal Secretary to PM Modi has stated. Nripendra Misra informed ANI in an unique interview that PM Modi by no means thought-about Rs 2000 word as that of the poor and knew “Rs 2000 note has hoarding value instead of transactional value”. “PM Modi was not at all in favour of Rs 2000 notes. But, as demonetisation was to be done in a limited time, he gave reluctant permission for it…PM never considered Rs 2000 note as note of the poor, he knew Rs 2000 (note) has hoarding value instead of transactional value,” Nripendra Misra stated.
He stated PM Modi was not in favour of forex notes being printed outdoors the nation. Misra stated it was determined through the demonetisation train, carried out in November 2016, that the forex notes that had been taken out of circulation (Rs 500 and Rs 1000) had to get replaced with new notes in a given time frame.
“In the period that the (demonetised) notes were to be deposited and new notes brought out, the capacity to print (new notes) was less and the option was to bring Rs 2000 note. The team that was working made the proposal that Rs 2000 notes will have to be printed in the wake of limited time. The Prime Minister was not at all enthused,” Misra stated.
He stated PM Modi felt that the hassle was to sort out black cash and if an even bigger denomination word comes then the capability to hoard will enhance. “When he was told about the capacity to print currency notes, and that even if two-three shifts are held, the target cannot be met..the only alternative left was to print Rs 2000 note for a limited period…the Prime Minister, in principle, was against it but for practical considerations, he reluctantly agreed. There was not an iota of doubt in his mind that when there is adequate capacity in the future, Rs 2000 note should be discontinued,” Misra stated.
“You would have observed that Rs 2000 notes were not being printed since 2018,” he added. Misra, who was Principal Secretary to PM Modi from 2014 and 2019, stated that RBI has additionally not been bringing again to circulation “soiled” Rs 2000 notes that got here to it from banks. He stated RBI has now introduced that Rs 2000 word is being withdrawn from circulation and folks can change it until September 30 in financial institution branches. Misra stated PM felt that Rs 2000 shouldn’t be for the frequent man and might someplace contribute to hoarding if it isn’t deposited in banks.
He stated the federal government has been engaged within the struggle towards black cash. RBI has additionally stated Rs 2000 denomination banknote was launched in November 2016, primarily to fulfill the forex requirement of the financial system in an expeditious method after the withdrawal of the authorized tender standing of all Rs 500 and Rs 1000 banknotes in circulation at the moment.
The goal of introducing Rs 2000 banknotes was met as soon as banknotes in different denominations turned accessible in enough portions. Therefore, the printing of Rs 2000 banknotes was stopped subsequently in 2018-19. The whole worth of those Rs 2000 banknotes in circulation has declined from Rs 6.73 lakh crore at its peak in March 31, 2018 (37.3 per cent of Notes in Circulation) to Rs 3.62 lakh crore constituting solely 10.8 per cent of Notes in Circulation on March 31, 2023.
The Reserve Bank of India (RBI) on Friday determined to withdraw the Rs 2000 denomination forex notes from circulation, however added they’ll proceed to stay as authorized tender. RBI had suggested banks to cease issuing Rs 2000 denomination banknotes with instant impact. RBI, nevertheless, stated that residents will proceed to have the ability to deposit Rs 2000 banknotes into their financial institution accounts and/or change them into banknotes of different denominations at any financial institution department as much as September 30, 2023.
The change of Rs 2000 financial institution notes into notes of different denominations could be made upto a restrict of Rs 20,000 at a time at any financial institution ranging from May 23, 2023.
