'Band-Aid' To Cover Up 'Foolish Decision': Chidambaram Slams Centre Over Withdrawal Of 2,000 Note

P Chidambaram slammed the government after the RBI announced the withdrawal of Rs 2,000 currency notes from circulation, calling it a "band-aid" to cover up the "foolish decision" of demonetising.

File Photo Of Senior Congress Leader P Chidambaram

Senior Congress leader P Chidambaram blasted the government on Friday after the RBI announced the withdrawal of Rs 2,000 notes from circulation, calling them a "band-aid" to hide the "foolish decision" to demonetise the Rs 500 and Rs 1,000 notes. The government and RBI were compelled to reintroduce the Rs 500 note a few weeks after demonetisation, according to the former Union finance minister, and he will not be surprised if the Centre also reintroduces the Rs 1,000 note.

"As expected, the government/RBI have withdrawn the Rs 2,000 note and given time until September 30 to exchange the notes," Chidambaram wrote in a tweet. "The Rs 2,000 note is hardly a popular medium of exchange. We said this in November 2016 and we have been proved correct," he added.

As expected, the government/RBI have withdrawn the Rs 2000 note and given time until September 30 to exchange the notes

The Rs 2000 note is hardly a popular medium of exchange. We said this in November 2016 and we have been proved correct

The Rs 2000 note was a band-aid to…

— P. Chidambaram (@PChidambaram_IN) May 19, 2023

The former finance minister claimed that the demonetisation of the widely used and popular Rs. 500 and Rs. 1,000 notes were a "foolish decision" and that the Rs. 2,000 note was merely a "band-aid" to cover it up.

The government and the RBI were forced to reintroduce the Rs 500 note a few weeks after demonetisation, according to Chidambaram.

"I shall not be surprised if the government/RBI re-introduced the Rs 1,000 note as well. Demonetisation has come full circle!!" He stated.

READ | Explained: Why RBI Has Decided To Withdraw Rs 2,000 Notes From Circulation

The Reserve Bank of India (RBI) announced on Friday that it would stop printing Rs 2,000 notes, but it gave the public until September 30 to deposit them in accounts or exchange them at banks.

The old Rs 500 and Rs 1,000 notes were suddenly invalidated overnight during the shock demonetisation in November 2016, but the Rs. 2,000 notes will remain legal tender until September 30.

The RBI said in a statement that it has directed banks to stop issuing Rs 2,000 notes with immediate effect. While the RBI did not specify a limit for depositing Rs 2,000 currency notes in bank accounts, an exchange of up to Rs 20,000 (10 Rs 2,000 notes) for other currency notes will be permitted at any one time.