Rs 2,000 Currency Notes 'Only Helped' Black Money Hoarders, Says P Chidambaram

Congress MP and former finance minister P Chidambaram's remarks came after the RBI announced it will withdraw Rs 2,000 currency notes from circulation.

New Delhi: Congress MP and former finance minister P Chidambaram on Monday said that the Centre's decision to introduce Rs 2,000 currency notes in 2016 was a 'foolish move' and said that he is 'glad' that it is being withdrawn. Taking to his official Twitter account, he said that the Bharatiya Janata Party's spin that the Rs 2,000 notes are being withdrawn to 'unearth black money' stands 'demolished'. His reaction came after the Reserve Bank of India (RBI) on Friday said it will withdraw Rs 2,000 notes from circulation and people can exchange or deposit them in their bank accounts till September 30.

"Banks have clarified that no identity, no forms and no proof will be required to exchange the Rs 2000 notes The BJP's spin that the Rs 2000 notes are being withdrawn to unearth black money stands demolished," P Chidambaram tweeted.

The Rajya Sabha MP also stated that ordinary people do not have Rs 2,000 currency notes.

"They shunned it soon after it was introduced in 2016. They were useless for daily retail exchange So, who kept the Rs 2000 notes and used them? You know the answer. The Rs 2000 note only helped keepers of black money to hoard their money with ease," he alleged.

Chidambaram added that the keepers of Rs 2,000 notes are being welcomed on a red carpet to exchange their notes.

"So much for the government's declared objective of rooting out black money. The Rs 2000 note was a foolish move in 2016. I am glad that the foolish move is being withdrawn at least 7 years later," he wrote.

Banks have clarified that no identity, no forms and no proof will be required to exchange the Rs 2000 notes

The BJP's spin that the Rs 2000 notes are being withdrawn to unearth black money stands demolished

Ordinary people do not have Rs 2000 notes. They shunned it soon after…

— P. Chidambaram (@PChidambaram_IN) May 22, 2023

The Rs 2,000 denomination banknotes were introduced in November 2016, primarily to rapidly meet the currency requirement of the economy after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 notes in circulation at that time.

According to RBI, the purpose of introducing Rs 2,000 banknotes was served once banknotes of other denominations became available in sufficient quantity.

The RBI said it has also been observed that the Rs 2,000 denomination note is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.

"In view of the above, and in pursuance of the 'Clean Note Policy' of the Reserve Bank of India, it has been decided to withdraw the Rs 2,000 denomination bank notes from circulation," it said.