The long-awaited move by the foxed Indian government over the ingenuity of hoarders of black money, political opposition, bootleggers, and smugglers to circumvent the inviolability of the Rs. 2000 rupee note is ending with the announcement of the withdrawal of the denominated note. The government had saved itself from embarrassment by not explaining why they introduced the ‘basement-friendly’ Rs. 2000 notes in the first place and not opting for a replacement of the old Rs. 1000 note. They saved themselves further embarrassment by not explaining why the Rs. 2000 note is being withdrawn now.
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Seven years ago, the demonetization of the Rs. 500 and Rs. 1000 notes began with a PM’s broadcast late in the evening, with the BJP’s IT and media cells romping with an overdose of adrenaline shots. They began with stories of hidden chips implanted in the notes, which made the notes impossible to hoard. The ink was nowhere used in the world and could not be used by counterfeiters in our recalcitrant neighbouring country. The design had several security features and thus cannot be copied; six 40-foot containers were on their way to India from Dubai with counterfeit notes, etc. I then took all these with a pinch of salt.
Corruption in the seven years of newer notes has only increased. Corruption-free India is not a matter that can be confined to PM Modi, who has forsaken family ties, or a few ministers in his government. Down the line, the demon of corruption is doing its frenzied dance in all the states, and trial and sentencing are bogged down by courts, which see a ghost in every shadow in the arrests of economic offenders and bribe takers and promptly give them bail, allow them to travel abroad to clean up their mess, and free them for lack of evidence.
The Rs. 2000 notes became useful because they took up less space to store and carry around, political parties were the main owners of the denomination, and banks seldom issuing the notes to commoners in recent months. The RBI must disclose how many Rs. 2000 notes are with the banks and how much is still in circulation. If the government was keen on promoting digital payments and curbing black money, why did they limit the withdrawal to Rs. 2000 notes and not Rs. 500 notes?
There must not be any denomination of currency notes above Rs. 100, which will make hoarding black money in huge amounts difficult. However, this may not suit the political leaders of the equine trade!
The announcement of the withdrawal of Rs. 2000 notes is not without the usual circus and related confusion. It is a demonetization w.e.f. 1st of October 2023, unless otherwise changed with another government notification, though the wordplay in the notification does not state demonetization, even if from a future date.
Ordinary people now must carry the notes to the bossy bank officials for an exchange, though it will be less torturous than the November and December 2016 experiences. Ending notes is fine, but how about ending black money? That latter is the hemoglobin in our blood!
Jai Hind!
Sampath Kumar
Intrépide Voix
