It seems that 59 circulars from the Reserve Bank of India weren’t enough.
Social activist Anil Bokil, said to be the brain behind PM Narendra Modi’s demonetisation policy, has hinted that the new Rs. 2,000 denomination note will cease to be a legal tender soon.
“The demonetised notes of Rs 500 and Rs 1,000 constituted 86% of the cash flow. Withdrawing them in one go was bound to spawn a major shock. The Rs 2,000 note was introduced to minimise that shock,” Bokil told the Times of India.
Bokil cited an example to explain: “A certain instrument is kept in the place of a heart going under the knife. The Rs 2,000 note is to demonetisation what that particular instrument is to a heart surgery,” he said while addressing students of the Arcade Business College on Wednesday and counselled the students to “have patience and work for the country”.
He then drew another analogy, comparing the cash economy to a bumpy road, and a well-banked economy with a smooth road.
“Once the road is constructed, what’s the use of diversion? Nothing,” he said and added Rs 50 notes could smoothly run the economy and, as such, even Rs 500 new notes and proposed Rs 1,000 notes would not be required in the future.
He also questioned the claim that only 6% of Indian currency is unaccounted for.
“Nobody knows from where has this 6% figure come. Black money is like cancer. When you treat cancer, one or two healthy cells also get destroyed along with cancerous ones in chemotherapy. Everyone knows election expenditures are made by parties in black money. Now you know why parties are creating a brouhaha when the common man is ready to face the hardship caused by notebandi,” said, Bokil, a member of the Pune-based ArthaKranti Sansthan which advocates financial reforms.
“India’s economy grows at around 7% while the parallel economy of black money grows at around 11%,” Bokil said.
Inputs from the Times of India