New Delhi: Prime Minister Narendra Modi was not in favor of introducing Rs 2,000 notes but reluctantly agreed to it after he was told that there is a lack of capacity to print smaller notes as demonetisation is to be done in a limited time. . Nripendra Mishra, former Principal Secretary to PM Modi has said. Nripendra Mishra told ANI in an exclusive interview that PM Modi never considered Rs 2000 note as poor’s note and knew that “Rs 2000 note has hoarding value rather than transaction value”. He said, “PM Modi was not at all in favor of Rs 2000 note. But since demonetisation was to be done in a limited time, he gave permission for it reluctantly… PM never gave Rs 2000 note to the poor. Note not considered, he knew Nripendra Mishra said, Rs 2000 (note) has hoarding value instead of transaction value.
He said that PM Modi is not in favor of printing notes outside the country. Mishra said that during the demonetisation exercise in November 2016, it was decided that the demonetised notes (Rs 500 and Rs 1000) would have to be replaced with new notes within a specified time.
“During the period when the (demonetised) notes were to be deposited and new notes were to be taken out, the capacity to print (new notes) was less and the alternative was to bring in Rs 2000 notes. The team which was working proposed that Rs 2000 notes will have to be printed in view of the limited time. The Prime Minister was not enthusiastic at all.
He said that PM Modi feels that the effort is to deal with black money and if higher notes come, the capacity to hoard will increase. “When they were told about the capacity to print currency notes, and that even if two-three shifts were done, the target could not be met..the only option left was to print Rs 2000 notes for a limited period. K’s note to be printed…The Prime Minister was, in principle, against it, but for practical considerations, he reluctantly agreed. Mishra said there was no doubt in his mind that 2000 trains would be installed in the future if there was sufficient capacity. Rupee note should be banned.
He said, “You must have seen that since 2018, Rs 2000 notes were not being printed.” Mishra, who was the Principal Secretary to PM Modi from 2014 and 2019, said that the RBI is not putting back into circulation the “dirty” Rs 2000 notes that came from banks. He said that RBI has now announced that Rs 2000 note is being withdrawn from circulation and people can exchange it in bank branches till September 30. Mishra said that the PM realized that Rs 2000 is not meant for the common man and may contribute to hoarding somewhere if not deposited in banks.
He said that the government is engaged in the fight against black money. RBI has also stated that Rs 2000 denomination banknotes were introduced in November 2016 primarily to meet the currency requirement of the economy after withdrawing the legal tender status of all Rs 500 and Rs 1000 notes in circulation at that time. to complete faster.
The purpose of introducing Rs 2000 banknotes was served once banknotes of other denominations became available in sufficient quantity. Hence, later in 2018-19 the printing of Rs 2000 notes was stopped. The total value of these Rs 2000 notes in circulation has fallen from Rs 6.73 lakh crore at its peak on March 31, 2018 (37.3 per cent of notes in circulation) to only 10.8 per cent of notes in circulation in March, ie Rs 3.62 lakh crore Is. 31, 2023.
The Reserve Bank of India (RBI) on Friday decided to withdraw currency notes of Rs 2000 denomination from circulation but said they will continue to be legal tender. RBI had advised banks to stop issuing Rs 2000 notes with immediate effect. However, the RBI said that citizens will be able to deposit Rs 2000 notes in their bank accounts and/or exchange them for other denominations of bank notes in any bank branch till September 30, 2023.
From May 23, 2023, the limit for exchanging Rs 2,000 notes for notes of other denominations at a time in any bank can be increased to Rs 20,000.