“Prime Minister Narendra Modi was not keen on introduction of the Rs 2,000 notes but went along with the advice of his team” — Just a day after a Reserve Bank of India (RBI) notification on withdrawal of the notes, the man who oversaw the last demonetisation in 2016, spoke exclusively to News18.com, making it clear that the recall should not be seen as demonetisation at all.
“This is not demonetisation, it is withdrawal of Rs 2,000 notes. After demonetisation, it was advised to introduce the Rs 2,000 note which the prime minister was not keen on. However, upon advice from his team, he allowed the notes as he is the captain. But he was clear then and so were we that this was a short-term arrangement. The poor and middle class don’t use Rs 2,000 notes, they use smaller ones like Rs 500 and Rs 100 and the prime minister was clear that he didn’t want the poor to be affected,” said former principal secretary to the PM, Nripendra Misra.
In a late-evening announcement on Friday, the RBI announced withdrawal of the notes, calling it a part of the “clean note” policy which means notes of higher denomination have a shorter shelf life lasting four-five years. Hence, it was inevitable that the notes would be phased out.
So is there reason to panic? “Not at all,” said Misra. “Those who have Rs 2,000 notes can go to their banks and deposit the money or even exchange it. They have no reason to be worried.”
Experts say the purpose behind withdrawal was also to curb black money. “This is one purpose. Those who have black money stash it with high denominations. And this is one reason why it cannot last long in circulation.”
The Opposition, however, says the 2016 demonetisation did not stop black money and only harassed the poor. This is being strongly negated by the government and sources say there is no plan to withdraw Rs 500 and Rs 100 notes.
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