The RBI will withdraw Rs 2,000 notes from circulation

New Delhi:

Opposition leaders have criticised the federal government over the central financial institution’s announcement that it’ll withdraw Rs 2,000 notes from circulation. They have in contrast the transfer to the in a single day ban of high-value forex notes in November 2016.

The ruling BJP has rejected the allegations and identified that the Rs 2,000 observe will proceed to stay legitimate, as introduced by the Reserve Bank of India (RBI).

West Bengal Chief Minister Mamata Banerjee stated the newest transfer will “hit the common people hard once again”.

Congress president Mallikarjun Kharge known as for an investigation. “You inflicted a deep wound on the economy with the first demonetisation. Due to this, the entire unorganised sector was destroyed, MSMEs were closed down and crores of jobs were lost,” Mr Kharge stated. “Now, the second demonetisation of Rs 2,000 note is here… Is this a cover-up of a wrong decision? Only an unbiased investigation will reveal the truth,” he alleged.

Delhi Chief Minister Arvind Kejriwal tweeted the centre earlier stated Rs 2,000 notes in circulation will finish corruption, however now it’s being withdrawn “in the name of ending corruption.”

Union Minister Dharmendra Pradhan hit again at Mr Kejriwal, saying the Delhi Chief Minister is “selling lies”. Mr Pradhan stated the Rs 2,000 notes will stay legitimate and the “educated Chief Minister is again out to sell lies”.

The RBI’s choice to withdraw Rs 2,000 notes from circulation will not have any “perceptible effect” on the economic system as any such notes returned shall be changed by both equal money in decrease denomination notes or a deposit, former NITI Aayog vice chairman Arvind Panagariya stated.

Responding to the Congress’s jibe, BJP chief Ravi Shankar Prasad reminded previous forex notes was withdrawn from circulation even throughout the United Progressive Alliance authorities’s time. 

“We would like to remind our Congress friends that even during the rule of Manmohan Singh, old currency notes used to be taken off circulation. Hence they (Congress) must not call it notebandi (notes ban),” Mr Prasad stated.

The Rs 2,000 notes will proceed to be legitimate even after the trade or deposit deadline of September 30. People can deposit or trade the high-value notes for decrease denomination ones as much as Rs 20,000 at a time.

The RBI stated banks will trade and take Rs 2,000 notes as deposits. The RBI’s 19 regional workplaces may even function trade factors until September 30. The whole worth of Rs 2,000 notes has fallen from Rs 6.73 lakh crore, or 37 per cent in circulation, at its peak in March 2018 to Rs 3.62 lakh crore, or 11 per cent in circulation, in March this yr.

The RBI stated one of many explanation why the Rs 2,000 observe is being withdrawn is that this denomination shouldn’t be generally used for transactions.