The Minister Of State For Finance Has Dismissed Rumors About The Demonetization Of ₹2000 Notes, Assuring The Public That There Is No Need To Worry

During a Tuesday session in the Rajya Sabha, New Delhi, Union Minister of State for Finance, Anurag Thakur, addressed concerns regarding the potential demonetization of ₹2,000 notes. He firmly dismissed these reports, reassuring members that there was “nothing to worry about.” Thakur responded directly to inquiries about whether the government had plans to phase out ₹2,000 notes in the future, stating, “Now another concern has come up about demonetization. I think you have nothing to worry about.”

Demonetization has resurfaced in public discourse, prompting various reactions among lawmakers. Samajwadi Party MP Vishwambhar Prasad Nishad expressed his concerns about the implications of the ₹2,000 note, claiming its introduction has led to an increase in the collection of black money. He stated, “With the introduction of ₹2,000 rupee notes, the collection of black money has increased. There is a misconception among people that you will take out ₹2,000 rupee notes from circulation and once again bring back ₹1,000 rupee notes.” This remark referred to the central government’s previous actions 2016 when it demonetized ₹1,000 and ₹500 notes to combat black money and counterfeit currency.

Thakur took the opportunity to clarify the objectives of the 2016 demonetization initiative, stating that its primary aims included eliminating black money, eradicating counterfeit notes, undermining the financial foundations of terrorism and Naxalism, and transforming the unorganized economy into a structured one to enhance the tax base and increase employment opportunities. Furthermore, he emphasized the importance of promoting digital payments to reduce the reliance on cash within the economy.

During the discussion, Thakur provided data on the current currency state in circulation, indicating significant growth since the 2016 demonetization. He shared that, as of November 4, 2016, there were ₹17,74,187 crore worth of notes in circulation. This figure has dramatically increased to ₹22,35,648 crore by December 2, 2019. This increase in currency volume highlights the evolving landscape of India’s financial ecosystem, reflecting both the government’s monetary policies and the public’s response to changes in currency availability.

Thakur’s comments come amid growing public speculation and anxiety surrounding the ₹2,000 notes. The introduction of this denomination was initially seen as a significant step in the government’s broader strategy to tackle black money. However, critics, including Nishad, argue that introducing higher denomination notes may have exacerbated the problem rather than solved it. They contend that these notes have become a tool for those engaged in illicit financial activities, allowing them to accumulate and conceal wealth more effectively.

The 2016 demonetization was a landmark decision in India’s economic policy, aimed at striking at the roots of unaccounted wealth and counterfeiting. However, its aftermath has been a subject of intense debate. While the government has maintained that the long-term benefits would outweigh the public’s short-term hardships, many individuals continue to grapple with the consequences of sudden cash shortages and the shift toward digital transactions.

The discourse surrounding the ₹2,000 notes and the potential for further demonetization reflects broader concerns about the efficacy of government policies in addressing black money and counterfeit currency. Anurag Thakur’s reassurance that there is nothing to worry about may bring temporary relief to some. Still, ongoing discussions and analyses will likely continue as the government navigates the complexities of India’s financial landscape. The remarks made by MPs during the session encapsulate the diverse perspectives on this issue, highlighting the challenges and debates that lie ahead as the country seeks to balance economic growth with effective regulation of currency.

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