Public Reaction to the Withdrawal of 2000 Rupee Banknotes in India

The recent decision by the Reserve Bank of India (RBI) to withdraw the 2000 rupee banknotes from circulation has sparked considerable debate and reactions among various sections of society. While common individuals remain largely indifferent, holders of black money and those involved in corruption have been largely affected by this move.

The Impact on Low and Medium Income Groups

There is little concern among the low and medium income groups regarding the exchange of 2000 rupee notes. In fact, not many such individuals possess large quantities of these notes. Those who do, often work in corrupt government departments and require prompt action to address the issue.

According to the Business Standard, some individuals with jobs in corrupt government departments have large amounts of 2000 rupee notes. Hence, the need for an urgent overhaul of these situations. The Dainik Bhaskar suggests that this move will help in the overhauling of such corrupt practices.

Indifference from the Common Man

The common man has largely remained indifferent to the issue. The withdrawal of 2000 rupee notes is a significant change, but many middle class individuals do not use this denomination frequently. Their 2000 rupee notes are generally held in their bank accounts, and hence, they are unaffected by this move. The shift primarily affects those who hold such large denominations of cash for illicit purposes.

Reservations About the Decision

While the common man might find the decision amusing, there are reservations about its efficacy. According to a personal perspective, the intention behind the move is understandable. Large denominations like 2000 rupee notes are easier to stash and store as opposed to smaller denominations like 500 rupees. This only aids corruption by making it simpler to transport hidden cash.

The effectiveness of this move would have been enhanced if the 2000 rupee denomination had been completely banned from being a legal tender after September 2023. As it stands, the RBI has declared that the currency will still be considered legal. This raises questions about the usefulness of such an announcement or the effort of changing the notes if they are not banned. Hence, people in possession of these notes might keep them as they were not getting a mandate to discard them.

Confusion from Authorities

Confusion seems to be prevalent not only among the public but also among authorities. The government's decision is clear: from October onwards, all 2000 rupee notes would no longer be recognized as legal currency. However, during the four-month transition period, these notes continue to be accepted at all banks. This ambiguity leaves people in a state of uncertainty.

The confusion extends to the Prime Minister and the RBI. Initially, it was expected that come October, all 2000 rupee notes would be rendered as worthless. This timeline provided a reasonable window for individuals to exchange or deposit their cash into the banks. However, if the notes are not banned and continue to be accepted, those hoarding large sums of cash will continue to use them, negating the purpose of the exchange process.

Conclusion

The withdrawal of 2000 rupee notes is a complex issue with varying impacts across different segments of society. While it may have been a well-intentioned move to curb corruption and black money, the lack of a clear ban on the notes during the transition period has induced confusion and skepticism among individuals. It remains to be seen whether this decision will effectively address the underlying issues of corruption and black money in India.