BJP MP Sushil Modi Demands Centre to Phase Out Rs 2,000 Currency Note, Here's Why

Bharatiya Janata Party (BJP) MP Sushil Kumar Modi on Monday urged the government to gradually phase out Rs 2000 note claiming that it is being used for terror funding. The Member of Parliament raised the issue during the the Zero Hour of the Rajya Sabha, saying that citizens holding the currency notes should be given two years to exchange them.

“While the Rs 2,000 currency note was introduced by the RBI to replace the demonetised Rs 500 and Rs 1000 notes at a faster pace in 2016, their printing has stopped in the last three years owing to several challenges associated with the circulation. There is information that people have hoarded it and it is being used for terror funding, drug trafficking and hoarding black money,” news agency ANI quoted Modi as saying.

The BJP MP cited examples of developed countries like the US and Japan, saying they do not have currency above 100 and that’s why the Centre should think about banning Rs 2000 note.

“If we look at major developed economies like the US, China, Germany and Japan, they do not have any currency above 100. So the Central government should think about it and ban it in a phased manner so that people have time to replace it with other smaller denominations,” he said.

The BJP lawmaker pointed out that the European Union (EU) discontinued 500 euro notes in 2018 and Singapore stopped issuing USD 10,000 notes in 2010 to curb illegal activities of drug trafficking, money laundering, terror funding and tax evasion, etc.

“Since India is also becoming a hub for digital transactions which also entail settlements of larger amounts, there is limited need for having a high-denomination currency note of Rs 2000. To this effect, I urge GoI to gradually phase out the Rs 2000 note over a designated time interval so that ppl can convert their legitimate holdings of the noted into lower-denomination notes,” Modi tweeted.

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