Amravati. Once again the debate on banning big currency notes has intensified in the country. Andhra Pradesh Chief Minister and Telugu Desam Party (TDP) chief N. Chandrababu Naidu has raised the demand to remove ₹500 and ₹2000 notes from circulation. His suggestion is that only ₹100 and ₹200 notes should be kept in the market. Naidu believes that limiting the use of high denomination notes and promoting digital transactions can help curb corruption.
Have raised the issue with Prime Minister Modi also
During the press conference in Amaravati on Monday, Naidu said that he had already put this proposal before Prime Minister Narendra Modi. He also mentioned giving suggestions in preparing reports related to digital currency. Naidu made it clear that he would continue to raise this issue further.
His argument is that cash transactions should be limited through big notes and the technology-based payment system should be strengthened. He said that if technology is used properly, it will not be difficult to achieve goals like wealth creation and poverty alleviation.
Big notes in discussion again after 10 years of demonetization
This demand of Naidu has come just after the tenth anniversary of demonetization on 8 November 2016. At that time the Central Government had abolished the legal circulation of old ₹500 and ₹1000 notes. The government had given objectives like stopping black money, fake currency and corruption behind this. Later new ₹500 and ₹2000 notes were issued.
In May 2023, the Reserve Bank of India had announced the withdrawal of ₹2000 notes from circulation. However, these notes still remain legal tender. At the same time, the existing ₹ 500 notes are also valid and no new official decision has been announced by the Central Government or RBI regarding their demonetisation.
Emphasis also given on reducing money power in elections
Chandrababu Naidu also expressed concern over the use of money power in electoral politics. He said that the basis of politics should not be money but public service. According to him, candidates who spend excessively in elections may develop a tendency to get back the money spent after coming to power.
He claimed that the NDA in Andhra Pradesh has taken steps towards distributing cash and reducing the influence of money power in local body elections. Naidu says that reducing election expenses can boost the spirit of service among public representatives.
Will the government stop ₹500 notes?
At present, this demand of Chandrababu Naidu is limited to a proposal and political statement. The Central Government has not announced any decision to scrap the existing ₹500 notes or to keep only ₹100 and ₹200 notes in circulation. In such a situation, it would not be right to consider this as the announcement of new demonetization.