Congress’ Chidambaram Slams Government, Says “Rs 2,000 Was a Band-Aid For Foolish Decision”

A few weeks after demonetisation, the government and the RBI were forced to re-introduce the Rs 500 note, says senior Congress leader

Written by Alina Khan May 19, 2023

Veteran Congress leader P Chidambaram takes a swipe at the central government after the RBI announced the withdrawal of Rs 2,000 banknotes from circulation. He said that the Rs 2,000 note was a “band-aid” to cover up the “foolish decision” of demonetizing Rs 500 and Rs 1,000 notes.

Chidambaram takes a swipe at govt. over special RBI announcement

The former Union finance minister said that a few weeks after demonetisation, the government and the RBI were forced to re-introduce the Rs 500 note and he will not be surprised if the Centre re-introduces the Rs 1,000 note as well.

The Reserve Bank of India (RBI) has announced the withdrawal of Rs 2,000 banknotes from circulation, however, gave the public time till September 30 to either deposit such notes in accounts or exchange them at banks.

Unlike the November 2016 shock demonetisation when old Rs 500 and Rs 1,000 notes were invalidated overnight, the Rs 2,000 notes will continue to be legal tender till September 30.

Taking to Twitter, the veteran Congress leader said, “As expected, the government/RBI have withdrawn the Rs 2,000 note and given time until September 30 to exchange the notes. The Rs 2,000 note is hardly a popular medium of exchange. We said this in November 2016 and we have been proved correct.”

As expected, the government/RBI have withdrawn the Rs 2000 note and given time until September 30 to exchange the notes

The Rs 2000 note is hardly a popular medium of exchange. We said this in November 2016 and we have been proved correct

The Rs 2000 note was a band-aid to…

— P. Chidambaram (@PChidambaram_IN) May 19, 2023

Also Read: RBI To Withdraw Rs 2,000 Banknotes, Exchange Notes Till This Date, Still Remain In Legal Tender

Rs 2,000 not was ‘band-aid’

The Rs 2,000 note was a “band-aid” to cover up the “foolish decision” of demonetising Rs 500 and Rs 1,000 notes which were popular and widely exchanged currencies, the former finance minister said.

A few weeks after demonetisation, the government and the RBI were forced to re-introduce the Rs 500 note, the leader said.

“I shall not be surprised if the government/RBI re-introduced the Rs 1,000 note as well. Demonetisation has come full circle!” he said.

In a statement, the RBI said it has asked banks to stop issuing Rs 2,000 notes with immediate effect.

While the RBI did not specify a limit for depositing the Rs 2,000 currency notes in bank accounts, the exchange of a maximum of Rs 20,000 (10 notes of Rs 2,000) for other currency notes will be allowed at a time.