Sunday, June 4, 2023

Decision to withdraw Rs 2000 currency note from circulation political ploy: Jharkhand CM


Mail News Service

Ranchi, May 21: Jharkhand Chief Minister Hemant Soren expressed his disapproval of the decision to remove the Rs 2000 note from circulation, labeling it a “political decision” similar to the controversial demonetization move. Soren shared his views during a program in Ranchi on Sunday, stating that the central government’s motive behind such decisions is to safeguard their political interests. However, he emphasized that the people of the country are now more discerning and are gaining a deeper understanding of such matters.

The Reserve Bank of India (RBI) recently announced the withdrawal of the Rs 2000 note, allowing individuals to deposit or exchange these notes until September 30. Chief Minister Hemant Soren criticized the move, comparing it to the politically-driven demonetization exercise carried out in 2016. He argued that the central government’s attempts to preserve its identity through such decisions have been exposed to the public.

Soren further highlighted the relatively short lifespan of the Rs 2000 note, which lasts only six to seven years. Drawing an analogy to other consumer products such as cameras and mobile phones, he emphasized that everything has a finite lifespan. The Chief Minister claimed that demonetization in 2016 resulted in the closure of over two lakh small and medium industries, indicating the adverse impact of such decisions on the economy.

The introduction of the Rs 2000 note in November 2016 came in response to the withdrawal of Rs 500 and Rs 1000 notes from circulation. Its purpose was to address the need for high-value currency in the economy at that time. However, the RBI recently determined that the Rs 2000 note is not extensively used in transactions and that an adequate supply of other denominations is available to meet the currency requirements of the public. Soren’s criticism reflects a wider sentiment among certain political figures and sections of the population regarding the withdrawal of the Rs 2000 note. While the decision is seen as an effort to streamline currency circulation and promote digital transactions, its political implications and economic impact continue to be subjects of debate.

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