PM Modi didn’t wanted to introduce Rs2000 note but heeded to team’s advice, says Principal secretary

New Delhi (India), 21st May 2023: Nripendra Misra, the Prime Minister’s principal secretary from 2014 to 2019, indicated that PM Modi was opposed to printing Rs 2,000 currency notes following demonetisation in 2016, but “went along with the consensus.”

He stated, “Hon’ble Prime Minister had this thought from the beginning that the Rs 2000 note would be a temporary measure. It was particularly impractical for the poor. Had it continued for long it would have incentivised black money, and induced tax evasion.”

Nripendra Misra has earlier indicated that PM Modi was not in favour of the consensus or opinion of experts that a higher denomination note should be issued to fast reinstate the currency that had been stripped of cash. However, when he accepted the decision, the PM totally owned it and never blamed policymakers, according to Misra.

The Reserve Bank of India (RBI) told banks on May 19 to stop issuing Rs 2,000 notes and immediately stop their circulation. It further claimed that commencing on May 23, the general public will be allowed to exchange their existing banknotes in all banks.

The RBI announced the withdrawal of Rs 2,000 currency notes in an official announcement for a variety of reasons, one of which being a sufficient supply of other denominations.
Furthermore, it has been established that the maximum number of Rs 2000 notes that can be exchanged at once is 20,000.

According to the RBI, the ordinary person can deposit 2000 rupees into their bank accounts or exchange them for banknotes of various denominations at any bank branch. Deposits into bank accounts can be done in the normal way, that is, without restrictions and in line with any applicable legal requirements.