Spokesperson: Prof. Gourav Vallabh: He said- Suddenly, currency notes of the denomination of Rs. 2,000 are being withdrawn from circulation. Citizens can exchange or deposit Rs. 2000 notes in their possession starting (May 23, 2023) as directed by RBI. These notes are not being withdrawn from circulation, but actually, they will stop circulating right away given that they will have to be deposited in a bank or exchanged for lower denomination notes. So, no one will prefer these notes in transactions which is as good as being withdrawn from circulation. This will create further confusion in the public for a while. Details of Rs. 2000 notes in circulation (As on 31.3.23) are as under –

Date Value of Notes Volume of Notes March 31, 2023 3.62 Lakh Crore 181 Crore

1.  Royal Welcome for keepers of Black money –

   Long back Rs. 2000 note had gone out of the hands of ordinary citizens. So, the majority of this Rs. 3.62 Lakh Crore is with the keepers of Black Money. Now to exchange Rs. 2000 notes, no identity, forms, or proof will be required by banks. So, Royal Welcome is given to keepers of Black money to exchange their Rs. 2000 denomination notes by the Modi Government.

2.  Six (6) Crore MSMEs and 11 Crore Farmers will be again in line

   MSMEs and farmers use cash as their working capital. So after 6.5 years again, the unorganized sector will be under stress to once again stand in line to exchange Rs 2000 notes. Further, as transactions face problems, especially for small businesses – producers and traders – the economy will be impacted which had just started showing signs of minor recovery after the pandemic.

3.  Bank Credit Growth will have an adverse impact

   If we assume on average, a person will come for the exchange of 5 (Five) Rs 2000 notes. Banks have to perform around 36 Crore Transactions in the next 4 months. If a transaction takes 4 minutes (Approx) to complete, it will take 144 Crore Minutes (2.4 Crore Hours) of banking hours just to exchange Rs 2000 notes in the next 4 months. This will harm the growth in credit as many bank branches will be busy in this exchange only in the next 4 months. Resulting in slow or no new job creation in the economy.

4.  Discretionary Consumer Demand will fall

   When citizens will be busy exchanging Rs 2000 notes. There will be a fall in the demand for consumer discretionary products like entertainment, high-end apparel, luxury cars, etc. Resulting in a low GST collection from these economic activities at least in the next 4 months. That will hurt social sector spending by the Government.

5.  Fall in the Credibility of the Currency

   With such a Full and Mini Demo, the credibility of our currency will be at stake. In the long term, it affects the credibility and acceptability of our currency. With this Mini DEMO the ordinary citizens will be impacted indirectly via rising unemployment and loss of incomes. They continue to be impacted by day-to-day corruption (“40% Commission Sarkar”). So we once again demand that a white paper be issued on independent India’s greatest “ORGANISED LOOT.” Tuesday, May 23, 2023