On the completion of 3 years of demonetisation, former Secretary of Economic Affairs under the Finance Ministry, S.C. Garg said that the Rs 2,000 note should be discontinued. He claimed that the Rs 2,000 note, replaced by old Rs 500 and Rs 1,000 notes, is being hoarded and should be discontinued.
Prime Minister Narendra Modi had announced the closure of the old Rs 500 and Rs 1000 notes on this day three years ago. The aim was to curb black money, promote digital payments and make the country a lescash economy.
Garg said in a note, “The system still has a considerable amount of cash. Hoarding of Rs 2,000 notes is proof of this. Digital payments are expanding all over the world. The same is happening in India. However, its growth here is slow.” Garg had taken voluntary retirement (VRS) after his transfer from the Finance Ministry.
Rs 2,000 note share one-third
Garg said that the currency in circulation on price basis is one-third of the Rs 2,000 note. He advocated for the closure of the 2,000 rupee note or withdrawal of the circulation, saying, “In fact, a good portion of the Rs 2,000 notes are not in circulation. They are getting hoarding. Therefore, the currency transactions do not see much of rs 2,000 notes.”
Over 85% transaction cash in the country
Garg said, “These notes can be closed without any difficulty. An easy way to do this is to deposit these notes into bank accounts. It can be used in managing the process.”
The former secretary of economic affairs said, “Extremely convenient digital modes of making payments are increasingly replacing cash. However, India is yet to go a long distance in this direction as more than 85 per cent of transactions in the country still have cash presence.”