‘So, who kept the Rs 2,000 notes and used them?’: ex-finance minister P Chidambaram questions RBI move

On Monday, former finance minister P Chidambaram questioned how the withdrawal of the Rs 2,000 notes from circulation will help unearth 'black money' as the State Bank of India today clarified that no form or ID proof will be required to exchange Rs 2,000 notes.

The senior Congress leader tweeted this morning, "Ordinary people do not have Rs 2.000 notes. They shunned it soon after it was introduced in 2016. They were useless for daily retail exchange. So who kept the Rs 2,000 notes and used them? You know the answer. The Rs 2,000 note only helped keepers of black money to hoard their money with ease.”

Chidambaram questioned if banks have clarified that no identity, no forms and no proof will be required to exchange the Rs 2,000 notes, then anyone hoarding 'black money' can exchange these notes without any disruption and getting noticed. This nullifies the government's efforts to unearth black money.

"The BJP's spin that the Rs 2,000 notes are being withdrawn to unearth black money stands demolished," Chidambaram said.

Also Watch: RBI governor Shaktikanta Das explains Rs 2,000 exchange, deposit rules, deadline, limit

He further added, “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 2,000 note was a foolish move in 2016. I am glad that the foolish move is being withdrawn at least 7 years later.”

The  Reserve Bank of India (RBI) said on Friday that the Rs 2,000 notes would no longer be in circulation. However, confusion still exists because many businesses are refusing to accept them. The RBI emphasised that Rs 2,000 notes will continue to be accepted as legal cash and advised individuals to deposit or exchange their notes by September 30. 

According to the State Bank of India, customers can swap ten notes worth Rs 2,000 at a time without providing ID or filling out any paperwork. Moreover, after adhering to KYC requirements, there is no restriction on depositing higher-value notes in bank accounts.

The opposition leaders harshly criticised the government’s move to withdraw Rs 2,000 notes seven years after they were first issued, but BJP officials supported the action. According to the former chief economic adviser K Subramanian, this step will not affect the common people because they don't have Rs 2,000 but will help check the hoarding of black money. According to PM Modi's former principal secretary Nripendra Mishra, PM Modi never liked Rs 2,000 notes as they are not suitable for daily use.

Previously, Chidambaram stated, “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. The Rs 2,000 note was a band-aid to cover up the foolish decision of demonetising Rs 500 and Rs 1000 notes which were popular and widely exchanged currencies. A few weeks after Demonetisation, the government/RBI were forced to re-introduce the Rs 500 note. I shall not be surprised if the government/RBI re-introduced the Rs 1000 note as well. Demonetisation has come full circle!”

“Rs 2,000 note was never a 'clean' note. It was not used by the vast majority of the people. It was used only by people to keep their black money, temporarily!” he added.

Also Read: Rs 2,000 note withdrawal: RBI Governor Shaktikanta Das urges customers to not rush to banks

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