?2,000 notes to be phased out within 5 years: RSS ideologue
RSS ideologue and notable Chartered Accountant S Gurumurthy has said that the new ?2,000 notes will be phased out within next five years. He added that the ?2,000 note was introduced only as a bridge to meet the gap in cash being taken out of circulation. Gurumurthy further claimed that the government was committed to moving towards smaller denomination notes.
In the first indication of the government's future policy on currency, a top RSS ideologue consulted in decision-making has told India Today that the new 2,000-rupee notes would also be phased out gradually in the years to come.In an exclusive interview to India Today, RSS ideologue S. Gurumurthy supported the notion of lower-denomination banknotes for the country.Gurumurthy, a key member of the Sangh-backed Vivekananda Foundation, has been advising seniors in the government over ways to deal with demonetisation.His comments came in the middle of the furore over the abrupt scrapping of 86 percent of the nation's currency by the Modi government."NO DEMONITISATION BUT REMONETISATION"Gurumurthy described the new 2,000 bills as a "bridge" to meet the gap in cash while it is being taken out of circulation.But the new biggest notes, he said, would also be "phased out" gradually."If you introduce new currency, it takes five to seven years to fake it," Gurumurthy remarked. "But before that, you will withdraw Rs 2,000 notes. Rs 2,000 note is only a bridge," he said.The 2,000-rupee bills, added Gurumurthy, only aimed at replacing the void 500 and 1,000 notes."It is obvious that they (the government press) are not able to print Rs 500-1,000 notes. The only way they could do it is by printing Rs 2,000 notes. After that, they will remonetise it without demonetising and then withdraw it," he explained.Prodded further if he believed that the 2,000-rupee bills would be pulled back without demonetising at some point in the next five years, he insisted the government would withdraw them gradually."Obviously... banks will be told that when you get Rs 2,000 notes, you don't return them. Slowly, banks will accumulate Rs 2,000 notes and replace them with lower denomination. If anything remains, like 5-10 to 20% notes, they will say, in next one month or so, you change your Rs 2,000 notes for Rs 500 notes," he said.Gurumurthy cited practices the country had adopted in the past to replace old series with the new currency."It is called phasing out. We have phased out many such series in the past," said the RSS leader, also a renowned chartered accountant.The government is, however, committed to moving towards smaller denomination notes, he added.Indian currency, he said, should have 500 as its highest-denomination followed by 250 and 100."NOTHING HAPPENS THROUGH PERSUASION"Gurumurthy defended prime minister Narendra Modi for his Nov 8 demonetisation announcement, which came under heavy attack both from the opposition and independent economists."Nothing happens in India through persuasion which is why determined action by the government is justified," he argued.Leading economist Amartya Sen has termed Modi's move despotic.No amount of advertising, Gurumurthy said, would have had any impact on the people's attitude and actions.Now that the shock of demonetisation has been delivered, people will move towards digital transactions far more effectively than what persuasion would have achieved, he argued.Also read All you need to know about the new Rs 2000 noteNew Rs 500, Rs 2000 notes: All you need to know