Demonetisation.02: On November 8, six years ago, Prime Minister Narendra Modi announced the demonetisation of old Rs 1,000 and Rs 500 banknotes and one of the key objectives of the unprecedented decision was to promote digital payments and curb black money, besides eliminating terror funding. As per a Reserve Bank data, currency with the public has jumped to a new high of Rs 30.88 lakh crore on October 21, indicating that cash usage is still substantial even six years after the demonetisation move. At Rs 30.88 lakh crore, the currency with the public is 71.84 per cent higher than the level for the fortnight that ended November 4, 2016.
Was this DeMo. 2?
According to famous economist Anil Bokil, Rs 500 and Rs 1000 notes when discontinued, summed up to 86 percent of the total circulation and were on the rise. If the demonetisation wouldn’t hit in 2016, then in the next two-four years, the circulation of Rs 500 and Rs 1000 would have reached 90 to 95 percent. This would have frozen country’s economy. Following this, these notes were discounted and the government introduced Rs 2000 notes. It was introduced as an alternative to Rs 500 and Rs 1000 rupee notes.
Rs 2000 notes withdrawn
Bokil claims that the Modi government had withdrawn Rs 2000 notes two and a half years ago which can be considered as a kind of demonetisation. Because when the government started it, digital payment was not in practice. As practice of digital payments increased, Rs 2000 were withdrawn. Now the government has stopped printing Rs 2000 notes. If you have an old Rs 2000 note and you want to replace it with a new one, then it will not be available now. According to the economist, many Rs 2000 notes have been returned to the bank. Whatever left in circulation is being used in corruption and hawala.