Withdrawal of Rs 2000 notes Economist and former Vice Chairman of NITI Aayog Arvind Panagariya says that this decision of the Reserve Bank of India will have a direct impact on illegal transactions in the economy. (Awakening – File photo)
Arvind Panagarhia, the former vice-chairman of Niti Aayog, said that the central bank’s decision to withdraw the 2,000 rupee note by the RBI will not have any direct impact on the economy. Because the existing 2000 notes will be replaced by the government with smaller value notes. Panagarhia said that the purpose behind this is to reduce the circulation of black money in the economy.
In a statement given to the news agency PTI, he said that we are not seeing any direct impact on the economy. The government will soon replace its high-value notes with lower-value notes and this will have no effect on the money supply.
What is the value of 2000 notes in total currency?
According to Panagarhia, 10.8 percent of the value of the total currency in circulation in the country till March 31, 2023, comes from Rs.2000 notes. Most of this money is used to carry out illegal transactions.
How many 2000 rupees notes can be exchanged?
On Friday, the RBI announced the withdrawal of Rs 2000 notes from circulation. The general public can exchange 2000 notes with small value notes from 23rd May to 30th September. However, a maximum of Rs 20,000 or 10 notes can be exchanged at a time.
Why was the 2000 note released?
After demonetization of Rs 500 and Rs 1000 in 2016, new Rs 2000 notes were issued by the RBI. At that time, it was argued for issuing new notes by the government that it would be possible to change the old notes into new notes as soon as possible. After 2018-19, printing of Rs 2000 notes was stopped.
