The Reserve Bank of India announced on 19 May that ₹2,000 bank notes The ₹500 and ₹1,000 notes that will be withdrawn from circulation, a little more than seven-and-a-half years after the economically damaging demonetisation, have given rise to a sense of déjà vu. Whereas Prime Minister Narendra Modi’s decision in November 2016suddenly and completely Cancel legal tender status The then available high denomination currency notes were apparently intended to ‘combat black money and the financing of terrorism’ RBI has told the latest step is in pursuance of its ‘Clean Note Policy’ and does not alter the legal tender status of the withdrawn notes. However, the central bank has set a deadline of September 30 to exchange or deposit the withdrawn currency, making it difficult for the common man to continue using the notes. Reports from across the country speak of consumers, including wage earners in sectors such as construction, struggling to pay for the purchase of medicines, petrol and other daily essentials, while the notes remain legal tender. Given that the RBI has admitted that the printing of new ₹2,000 notes was stopped in 2018-19, the sudden decision to withdraw the notes into circulation has raised questions of propriety. The RBI stated that between November 2016 and March 2017, about 89% of ₹2,000 notes were issued after demonetisation “to quickly meet the currency requirement of the economy” and since then notes of lower denominations have been adequately available. were done, which eliminated the need. For ₹2,000 notes.
The central bank has also argued that the notes that were sought to be withdrawn were “at the end of their estimated life-span of 4-5 years” and that the value of these bills in circulation had come down to Rs 3.62 lakh crore or Rs 10.8 billion. happened. % of total notes in circulation as on 31st March. A look at the past withdrawal of bills by the RBI, for example, shows that starting in April 2014, all banknotes issued before 2005 or about a decade ago were gradually withdrawn. even though they continued to enjoy legal tender status. Even today, low-denomination bills that were issued at least until 2013, and which are used far more frequently in everyday transactions, remain in circulation, regarding the RBI’s ‘clean note’ argument arouse suspicion. The RBI reserves the right to issue or withdraw currency bills as it deems fit to carry out its policy mandate, but now the lack of transparency, and administrative flip flops, do little to instill confidence in “promise to pay bearer” We do. The face value of the note.