Express News Service
NEW DELHI: The Rajya Sabha witnessed an unusual demand on Monday by none else than a BJP MP. BJP MP and former finance minister of Bihar Sushil Kumar Modi urged the Centre through the Chair to phase out the currency of Rs 2,000 denomination. Raising the issue of citizens holding such banknotes should be given two years to deposit it.
Raising the issue through a zero-hour mention, Modi said that the currencies of Rs Rs 2,000 denomination have almost become invisible and vanished from markets and the most ATMs in the country. He said suspected that the currencies of the Rs 2000 denomination might be being illegally hoarded and used in illegal trades such as that drugs, money laundering and others. He also expressed dismay over Rs 2000 currency not being seen used for normal transactions.
“There is a need for phasing out the Rs 2000 currency note in a gradual manner giving an adequate time of a year to the people to deposit their legitimate holdings into smaller denomination currency notes,” Modi said, adding that no logic of bringing a Rs 2000 currency note was seen when the currency of Rs 1,000 denomination was out of circulation.
He said that while the Rs 2000 note was introduced by RBI to replace the demonetised Rs 500 and Rs 1000 notes at a faster pace in 2016, their printing has stopped in the last thre years owing to several challenges associated with the circulation.”
Citing examples of some developed countries, which don’t have the currency of higher denomination; Modi said that the $100 is the highest denomination while 100 Yuan in China.CAD in Canada and 200 Euros in European Union are of the highest denomination.
He, citing as an example in support of his demand, said that the EU discontinued 5000 Eros note in 2018 and Singapore stopped issuing $10,000 notes in 2010 to curb illegal activities of drug trafficking, money laundering, terror funding and tax evasion. “Since India is also becoming a hub for digital transactions which also entail settlements of larger amounts, there is limited need for having a high-denomination currency of Rs 2000,” he categorically stated while urging to phase it out.
NEW DELHI: The Rajya Sabha witnessed an unusual demand on Monday by none else than a BJP MP. BJP MP and former finance minister of Bihar Sushil Kumar Modi urged the Centre through the Chair to phase out the currency of Rs 2,000 denomination. Raising the issue of citizens holding such banknotes should be given two years to deposit it.
Raising the issue through a zero-hour mention, Modi said that the currencies of Rs Rs 2,000 denomination have almost become invisible and vanished from markets and the most ATMs in the country. He said suspected that the currencies of the Rs 2000 denomination might be being illegally hoarded and used in illegal trades such as that drugs, money laundering and others. He also expressed dismay over Rs 2000 currency not being seen used for normal transactions.
“There is a need for phasing out the Rs 2000 currency note in a gradual manner giving an adequate time of a year to the people to deposit their legitimate holdings into smaller denomination currency notes,” Modi said, adding that no logic of bringing a Rs 2000 currency note was seen when the currency of Rs 1,000 denomination was out of circulation.
He said that while the Rs 2000 note was introduced by RBI to replace the demonetised Rs 500 and Rs 1000 notes at a faster pace in 2016, their printing has stopped in the last thre years owing to several challenges associated with the circulation.”
Citing examples of some developed countries, which don’t have the currency of higher denomination; Modi said that the $100 is the highest denomination while 100 Yuan in China.CAD in Canada and 200 Euros in European Union are of the highest denomination.
He, citing as an example in support of his demand, said that the EU discontinued 5000 Eros note in 2018 and Singapore stopped issuing $10,000 notes in 2010 to curb illegal activities of drug trafficking, money laundering, terror funding and tax evasion. “Since India is also becoming a hub for digital transactions which also entail settlements of larger amounts, there is limited need for having a high-denomination currency of Rs 2000,” he categorically stated while urging to phase it out.
