‘First Act, Second Think’: Cong slams ‘Vishwaguru’ PM Modi for Rs 2k notes withdrawal
The News MinuteMay 20, 2023
The Reserve Bank of India (RBI) said Friday that the nation will begin withdrawing its 2K-rupee ($24.5) banknote, with the head of the finance ministry, T.V Somanathan, saying it would not cause disruption "either in normal life or in the economy."
The RBI has asked people to deposit their 2K-rupee notes into their accounts or exchange them into banknotes of other denominations — up to 20k rupees at a time — starting May 23, with banks asked to provide exchanges until Sept. 30.
After ignorantly issuing the 2K-rupee banknote in the first place and watching it destroy the Indian economy for years, PM Modi's government is finally admitting its failure. The ruling government acts before it thinks, and this is another example of its failed policies and disregard for the working people.
As India's deposit growth is currently lagging behind credit growth, this move will help ease the pressure on deposit rate hikes. Though some small businesses like construction or agriculture could be hurt in the near term, the 2K-rupee note was little used compared to smaller denominations. This is the right decision.