Rs 2,000 note only a stopgap arrangement: Gurumurthy

Gurumurthy said the government was committed towards lower denomination currency.

Rs 2,000 note only a stopgap arrangement: Gurumurthy

While the queues refuse to get shorter for the banks and ATMs to obtain new currency notes of Rs 500 and Rs 2000, RSS ideologue S. Gurumurthy said Rs 2000 note is a "stopgap arrangement" to tide over the cash crunch after demonetisation, and it will ultimately be withdrawn by the government, albeit gradually.

In an interview with India Today, Gurumurthy on Monday said  the Rs 2,000 note was introduced only to meet the demand-supply gap after Rs 500 and Rs 1,000 notes were sucked out of circulation.


It is to be noted that Gurumurthy is said to be in the loop all through the demonetisation process.

He said the banks would be asked to hold back Rs 2,000 notes and replace them with lower denomination notes.

"Obviously, the banks will be told not to return Rs 2,000 notes they receive. Slowly, the banks will accumulate Rs 2,000 notes and replace them with lower denomination notes," said Gurumurthy.

Gurumurthy is a prominent member of the Rashtriya Swayamsevak Sangh-backed think tank Vivekananda International Foundation (VIF).

He said the government would be phasing out Rs 2,000 notes and not demonetising them. "We have phased out many series of notes like this in the past," he said.

Gurumurthy said the government was committed towards lower denomination currency.

It is to be noted that this comes after the government's contradictory stand that it was demonetising Rs 1,000 notes since higher denomination currency encouraged black money, but instead introduced Rs 2,000 note.