Rs 2000 currency note in 2016 was a foolish move, says ex-Finance Minister Chidambaram

The former finance minister further said that he was glad that the "foolish move is being withdrawn at least 7 years later"

Congress veteran and former finance minister P Chidambaram on Monday said that the government's decision of the "Rs 2000 note was a foolish move in 2016".

The former finance minister further said that he was glad that the "foolish move is being withdrawn at least 7 years later".

Chidambaram slammed the central government over introducing new notes and said, "The BJP (Bharatiya Janata Party)'s spin that the Rs 2000 notes are being withdrawn to unearth black money stands demolished."

Chidambaram said in a long tweet: "Banks have clarified that no identity, no forms and no proof will be required to exchange the Rs 2000 notes. Ordinary people do not have Rs 2000 notes. They shunned it soon after it was introduced in 2016. They were useless for daily retail exchange."

Also Read: Breaking: RBI to withdraw Rs 2,000 currency notes from circulation

The Reserve Bank of India on Friday said it will withdraw Rs 2,000 notes from circulation and people can exchange or deposit them in their bank accounts till September 30. The Rs 2000 denomination banknote was introduced in November 2016, primarily to rapidly meet the currency requirement of the economy after the withdrawal of legal tender status of all Rs 500 and Rs 1000 notes in circulation at that time. The purpose of introducing Rs 2000 banknotes was served once banknotes of other denominations became available in sufficient quantity. Therefore, printing of Rs 2000 notes was subsequently discontinued in 2018-19, the RBI said.

Chidambaram further said in his tweet, "So, who kept the Rs 2000 notes and used them? You know the answer. The Rs 2000 note only helped keepers of black money to hoard their money with ease. The keepers of Rs 2000 notes are being welcomed on a red carpet to exchange their notes!"

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