Will withdrawal of Rs 2,000 notes end corruption? Here's what ex-RBI deputy chief says

The central government on Friday (May 19) announced that it would withdraw Rs 2,000 currency notes. It would stay legal tender till September 30 and people can exchange the notes of Rs 2,000 with the notes of lesser denominations up to Rs 500.

Rs 2,000 notes were introduced in November 2016 with the promise of ending corruption.

They have been withdrawn with the same promise.

However, the question for a common man is- did it really end corruption?

Will the withdrawal of Rs 2,000 note control black money?

On this, the Reserve Bank of India's (RBI) former deputy governor, Rama Subramaniam Gandhi, said that corruption can be curbed to a great extent after the withdrawal of Rs 2,000 notes as people were hoarding them. 

With the ₹2000 denomination bank notes set to be withdrawn from circulation, there are several Myths surrounding it. Through this series, get to know the Facts related to this decision of @RBI.#MythsVsFacts #MythBusters @nsitharaman @finminindia @ianuragthakur @Murugan_MoS… pic.twitter.com/dHjieNtJ3Y

— Ministry of Information and Broadcasting (@MIB_India) May 21, 2023

Gandhi was the head of the RBI's currency department at the time of the demonetisation of Rs 500 and Rs 1,000 currency notes in 2016. 

He said that like in 2016, it would help to a great extent as one of the major reasons for withdrawing the currency from circulation (in 2016) was also to curb black money.

Gandhi said that there won't be a systematic impact on payments as these notes are not used in daily transactions, and most payments in India are done through digital means. 

However, he doesn't rule out the inconvenience people may face for currency exchange, which may cause 'operational inconvenience'.

He said that many people might have to visit a bank branch many times.

(With inputs from PTI)