Phase out 2,000 rupee notes, BJP MP demands in Rajya Sabha

BJP MP Sushil Modi raised the issue of scarcity of Rs 2000 notes in the country and alleged that hoarding of the notes as black money was taking place.

New Delhi : A demand to gradually phase out 2,000 rupee currency notes was made in the Rajya Sabha on Monday with BJP MP Sushil Kumar Modi saying citizens holding such banknotes should be given two years to deposit it. Raising the issue through a zero-hour mention, he said 2,000 rupee notes have vanished from most ATMs in the country and there are rumours that they may not be legal tender soon. "The government has to clarify on this," he said, adding the RBI stopped printing the 2,000 rupee currency notes 3 years back.

The 2,000 rupee currency note along with a new 500 rupee note was introduced when the government overnight demonetised old 500 and 1000 rupee notes. "There was no logic of bringing a 2,000 rupee note when 1,000 rupee note circulation was stopped," he said and went on to cite examples of developed nations that do not have currency notes of higher denomination. He said 2,000 rupee notes are being hoarded and are often used in illegal trades such as that drugs, and money laundering.

The 2,000 rupee note - the highest currency denomination in the country - has become synonymous with black money. "The government should gradually phase out the 2,000 rupee note. Citizens should be given 2 years to exchange their holdings of the 2,000 rupee notes," he said.

In February, Finance Minister Nirmala Sitharaman had said that no instructions have been given to the banks on stopping the issuance of Rs 2000 currency notes."As far as I know, no such instruction has been given to the banks (on stopping the issue of Rs 2000 notes)," she said at a meeting with the heads of PSU banks.

The Minister's comments come after reports of ATM recalibration to phase out of Rs 2000 notes and that the largest currency denomination will remain legal tender, but would be gradually phased out of public circulation.