News of RBI on 2000 rupee currency note brought mixed reactions. Common man is damn happy to hear option of systematic withdrawl but looks like some of the opposition leaders are not pleased with the announcement.
Printing of 2000 note discontinued in 2019. At present 2000 rupee notes account for 1.6% of total notes in circulation, volume wise it is roughly 10%. Aam aadmi doesn’t deal in large sum nor do they have bundles of 2000 at home or in office. While most are not pleased with the decision of RBI there are some who think that withdrawing 2000 rupee note will not inconvenience the masses. This is a silly reason, really issue is different which people understand.
Now goal post is shifted and opposition is blaming NaMo for failed demonetization exercise. It is an ongoing fight against the corruption and traders of counterfeit notes.
Before we get into the analysis let us also understand the perception, reality and effort on ground with regards to corruption.
We witnessed an era that was full of scams. Nation was fed up of scams in every aspect of life. Some development projects did saw light of the day but either they remained memories in the form of foundation stone like Rail Neer at Amethi or they took too much time. Ones that travelled some distance or reached completion became famous for wrong reasons like Adarsh, coalgate, common wealth games, Augusta Westland helicopter, Devas – Antrix, IX Media, National Herald to name a few.
At present the point is how serious is the government in fighting corruption.
There is no magic wand to remove corruption. However, it can be eliminated to a large extent by introducing police, judicial and administrative reforms. And add to it have only 100 rupee note in circulation. Supreme Court Advocate Ashwini Upadhyay is consistently taking up this at possible forums and has filed plenty of PIL as well.
Between 2014 and July 2022 the raids and overall performance of Enforcement Directorate jumped by around 26%. In all there were over 3000 raids under Modi lead government as compared to MMS tenure.
Why the need to withdraw now?
There are more than one reason to withdraw now. Many videos that gets shelter in whatsapp forwards are of ED and CBI searches where 500 and 2000 currency note is seized. High value currency is easy to keep and share for any type of crime.
Cases of fake currency have gone by drastically between the period 2019 and 2020 and 2021 – 2022.
Secondly, BJP leader Sushil Kumar Modi had made an appeal in Rajya Sabha in December 2022 to withdraw 2000 rupee note as he felt the ATMs were no longer dispensing the note and it may lead to increase in black money.
According to National Crime Records Bureau close to sixty percent of cash seized in raids 2021 were in the form of 2000 notes.
Coming to issue of inconvenience during demonetization. The size of currency note was changed drastically during demonetization, which took time to make new units of currency bundle trays to fit the ATMs. Apart from this printing was also taking time. It was a well thought decision to introduce 2000 rupee note to meet the expectations of citizens in short duration of time. However, now question of inconvenience is not there. Ample time is give by RBI to deposit or exchange notes till September 2023 end.
Knowingly or unknowingly it served as mechanism to trap black money. Ordinary citizens have nothing to lose. Anyone in possession of black or fake note will have to make paper boats or play Best out of Waste.
Elections– Cash transactions for campaigning, voters logistics and engagement involves cash transactions. The withdrawal of the higher denomination note will lead to default scrutiny of campaign funding sources. With a focus on curbing black money and unaccounted wealth, the move may prompt stricter monitoring of political finances, including the source and utilization of funds. Political parties shall be compelled to demonstrate transparency and accountability in their financial dealings, ensuring compliance with existing election laws and regulations.
NaMo lead government is in ninth year. There is a section of media, activists, NGO’s and opposition who take pride in mocking everything that NaMo does, only to get egg on their face at a later date.
2000 rupee note has served the purpose for which it was introduced. Created ease for masses when needed and now creates havoc when black money and counterfeit owners and traders were just about to settle down.
Enjoy the journey to 2024 elections. Public has a lot to witness. Fake news, biased news and of course how BJP is going to innovate new strategies as they approach the grand finale in 2024.
