FM Nirmala Sitharaman on ₹2,000 banknote withdrawal

On ₹2,000 banknote withdrawal, Finance Minister Nirmala Sitharaman said 'Even by lifespan calculation, the currency notes's lifespan has been reached and hence RBI has decided to withdraw them'. FM also said that these decisions are taken by the RBI.

'The RBI has achieved its motive here, Opposition can say what it wants. Introduction of Rs 2,000 notes was an attempt of remonetisation,' said Sitharaman at a press conference on 9 years of Modi government in Mumbai.

The Reserve Bank of India (RBI) announced on May 19 that it is removing ₹2,000 notes from circulation. The RBI stated in a release that the ₹2,000 banknotes will still be accepted as legal money.

The Reserve Bank of India (RBI) has recommended the general people to deposit ₹2,000 banknotes into their accounts or exchange them for notes of other denominations at any bank branch.

'Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions,' RBI stated in a release.

Reacting to Former Finance Minister P Chidambaram's remark on ₹2,000 banknote withdrawal as a 'foolish decision', Sitharaman said 'He has been in the (FM) office. He should not make frivolous statements and understand the process'

The RBI further stated that beginning on May 23, 2023, any bank will be able to exchange ₹2,000 banknotes into notes of other denominations up to a ceiling of ₹20,000 at a time in order to maintain operational convenience and prevent disruption of regular activities of bank branches.