New Delhi, 20 May (Hindustan Times). Arvind Panagariya, former vice-chairman of NITI Aayog, has given his response on the Reserve Bank of India’s (RBI) decision to withdraw Rs 2,000 note. Panagariya has said that the RBI’s decision will not have any direct impact on the economy, as such withdrawn notes will be replaced by notes of lower denominations at the same price.
Arvind Panagariya on Saturday justified the decision to withdraw Rs 2,000 currency notes, saying the possible motive behind the move was to make movement of illicit money more difficult. He said that Rs 2,000 notes currently account for only 10.8 per cent of the total cash in the hands of people, while most of this amount is probably used for illegal transactions.
It is noteworthy that the Reserve Bank had announced to withdraw Rs 2,000 note on Friday. According to RBI, notes of this value can be deposited or exchanged in banks till September 30. However, the Reserve Bank has said in a statement that the Rs 2,000 notes currently in circulation will remain legal tender till September 30.
