“Notebandi,” Says Opposition. “Rs 2,000 Notes Will Stay Legitimate,” Says BJP

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’ve in contrast the transfer to the in a single day ban of high-value foreign money notes in November 2016.

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

West Bengal Chief Minister Mamata Banerjee mentioned the most recent transfer will “hit the widespread individuals laborious as soon as once more”.

Congress president Mallikarjun Kharge known as for an investigation. “You inflicted a deep wound on the economic system with the primary demonetisation. Resulting from this, all the unorganised sector was destroyed, MSMEs had been closed down and crores of jobs had been misplaced,” Mr Kharge mentioned. “Now, the second demonetisation of Rs 2,000 notice is right here… Is that this a cover-up of a flawed resolution? Solely an unbiased investigation will reveal the reality,” he alleged.

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tweeted the centre earlier mentioned Rs 2,000 notes in circulation will finish corruption, however now it’s being withdrawn “within the identify of ending corruption.”

Union Minister Dharmendra Pradhan hit again at Mr Kejriwal, saying the Delhi Chief Minister is “promoting lies”. Mr Pradhan mentioned the Rs 2,000 notes will stay legitimate and the “educated Chief Minister is once more out to promote lies”.

The RBI’s resolution to withdraw Rs 2,000 notes from circulation won’t have any “perceptible impact” on the economic system as any such notes returned might be changed by both equal money in decrease denomination notes or a deposit, former NITI Aayog vice chairman Arvind Panagariya mentioned.

Responding to the Congress’s jibe, BJP chief Ravi Shankar Prasad reminded previous foreign money notes was withdrawn from circulation even through the United Progressive Alliance authorities’s time. 

“We want to remind our Congress pals that even through the rule of Manmohan Singh, previous foreign money notes was taken off circulation. Therefore they (Congress) should not name it notebandi (notes ban),” Mr Prasad mentioned.

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

The RBI mentioned banks will trade and take Rs 2,000 notes as deposits. The RBI’s 19 regional places of work will 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 12 months.

The RBI mentioned one of many explanation why the Rs 2,000 notice is being withdrawn is that this denomination is just not generally used for transactions.