The recent announcement by the Reserve Bank of India (RBI) regarding the withdrawal of Rs 2,000 currency notes from circulation has elicited a diverse range of reactions from various sectors, including the industry and political parties.
While certain industrialists anticipated this move, the opposition seized the opportunity to criticize the government led by Prime Minister Narendra Modi.
The decision has sparked a spirited debate on the effectiveness and implications of this measure. While proponents argue that it will curb black money and promote digital transactions, critics raise concerns about the inconvenience faced by the public and question the timing of this decision. As the nation grapples with differing viewpoints, the RBI's move continues to stir discussions and shape the narrative surrounding India's economic landscape.
According to former Reserve Bank Deputy Governor R. Gandhi, the withdrawal of Rs 2,000 bank notes will have a significant impact on curbing black money as people tend to hoard these high-value currency notes. Gandhi, who was at the helm of the currency department during the 2016 demonetisation exercise, stated that the withdrawal is unlikely to have a systemic impact on payments since these notes are not extensively used in day-to-day transactions, which are predominantly conducted digitally.
Vimal Nadar, Head of Research at Colliers India, expressed that the decision to withdraw the Rs 2,000 denomination notes was anticipated and is a timely step towards effective currency management and maintaining financial discipline.
Nadar further highlighted that such measures contribute to reducing or eliminating the potential cash component in high-value real estate transactions. He emphasized that recent reforms such as the Real Estate (Regulation and Development) Act (RERA) and demonetisation have significantly enhanced transparency in the real estate sector, thereby fostering fair market price determination.
The opinions from experts in the field present contrasting perspectives on the withdrawal of Rs 2,000 bank notes.
However, there are other groups of people who have criticized this move of the government.
The withdrawal of Rs 2,000 currency notes from circulation has become a subject of criticism from the opposition parties.
Delhi Chief Minister Arvind Kejriwal has criticized the central government for its decision to withdraw Rs 2000 currency notes from circulation. Kejriwal's remarks came in response to the announcement made by the Reserve Bank of India on Friday.
The Aam Aadmi Party leader expressed his dissatisfaction with the government's approach, stating that initially, they introduced Rs 2000 notes claiming it would curb corruption, and now they are banning those same notes under the pretext of ending corruption. Kejriwal further commented that anyone can say anything to an illiterate Prime Minister, emphasizing that the PM lacks understanding.
In a tweet in Hindi, Kejriwal said, "First they said that by bringing Rs 2000 notes, corruption will stop. Now they are saying that by banning Rs 2000 notes, corruption will end. That's why we say the PM should be educated. Anyone can say anything to an illiterate PM. He doesn't understand. The public has to suffer."
Kejriwal's remarks highlight his disagreement with the government's decision and his belief that the withdrawal of Rs 2000 currency notes will have negative consequences for the public.
Meanwhile, West Bengal Chief Minister Mamata Banerjee slammed the BJP-led central government over the Reserve Bank of India’s decision to withdraw Rs 2,000 currency notes from circulation, describing it as a “billion dollar 'dhoka' (fraud) to a billion Indians”.
In a Tweet, she said, “So it wasn’t ₹2000 dhamaka but a billion dollar dhoka to a billion Indians. Wake up my dear brothers and sisters. The suffering we have endured due to demonetization can’t be forgotten and those who inflicted that suffering shouldn’t be forgiven.”
The Bharat Rashtra Samithi (BRS), the ruling party in Telangana, has strongly criticized the Narendra Modi-led NDA government for the recent announcement made by the Reserve Bank of India (RBI) regarding the withdrawal of Rs 2,000 denomination currency notes from circulation. The RBI's decision, which allows existing notes to be deposited in bank accounts or exchanged by September 30, has been deemed "absurd and illogical" by the BRS.
In a video message released on Friday night, Sravan Dasoju, spokesperson of the BRS, stated, "The government of India's decision to withdraw Rs 2,000 notes is completely absurd and illogical. Actually, Mr Narendra Modi has proven himself to be inefficient and incapable as Prime Minister, and the demonetization that was announced in 2016 was a complete failure."
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