Congress cries foul over phasing out of Rs 2000 foreign exchange notes: How numerous Congress govt adopted the ‘demonetisation’ path to manage black money
On nineteenth May 2023, the Reserve Bank of India launched that it is withdrawing the circulation of ₹2000 foreign exchange notes. However, the central monetary establishment acknowledged that the foreign exchange notes will nonetheless proceed to be approved tender, and added that most people can change the notes till 30 September. RBI moreover acknowledged that printing of the high-value banknotes was stopped nearly 5 years up to now.
However, the entire opposition occasions along with Congress engaged in attacking the union authorities over this selection. The of us have been given time till September 30, 2023, to vary notes or deposit them throughout the monetary establishment. The 4-month deadline for exchanging notes is taken into consideration ample. However, the opposition is trying to politicize this issue. They are moreover attempting to create panic by evaluating it to demonetisation, which was a very fully totally different switch. In actuality, this switch to half our Rs 2000 notes should not be sudden the least bit and was being deliberate for the earlier a number of years. It was, in fact, solely alleged to be a quick switch from the beginning.
It is, subsequently, important to take an account of comparable alternatives taken by quite a few Congress governments beforehand when foreign exchange notes had been each discontinued or demonetised.
Be it the Jawaharlal Nehru authorities which took over immediately after independence or the Manmohan Singh authorities that led the nation for a decade throughout the twenty-first century, there have been many circumstances of nice alternatives regarding foreign exchange notes. Sometimes the alternatives had been about introducing the foreign exchange, whereas at totally different events the alternatives had been about discontinuing the foreign exchange. But whereas accusing the Modi authorities of miscalculating demonetisation in 2016 and withdrawing Rs 2000 notes in 2023, congress has forgotten the foreign exchange alternatives it took.
The Reserve Bank of India printed the easiest denomination discover, which was the Rs 10,000 discover, in 1938 along with totally different bigger denominations of Rs 100, 500 and 1000. It was demonetised in January 1946 nevertheless later reintroduced in 1954. During the reintroduction in 1954, Jawaharlal Nehru served as a result of the Prime Minister of India.
In the first demonetisation, Rs 500, Rs 1,000 and Rs 10,000 notes had been demonetised to manage black money. the date was twelfth August 1946. Jawaharlal Nehru turned the de-facto Prime Minister – that is, the chief of the interim authorities – on 2nd September 1946. In 1954, his authorities reintroduced Rs 1000, 5000, and 10000 foreign exchange notes which had been earlier demonetised to manage black money. Essentially, this switch by Jawaharlal Nehru was one among many components which led to the problem of black money throughout the first place.
On sixteenth January 1978, the Morarji Desai authorities wanted to take a daring option to demonetise the entire denominations above Rs 100 with a view to administration the menace of black money. This included demonetisation of the foreign exchange notes of Rs 500, 1000, 5000, and 10000. After this announcement by the federal authorities, it was decided to close the entire banks and their branches throughout the nation along with the treasury of the federal authorities on January 17, 1978. Dr Manmohan Singh carried out an crucial operate on this demonetisation. He served as a result of the finance secretary throughout the Morarji Desai authorities.
However, this step taken by the Morarji Desai authorities was not enough to revive the monetary system. Meanwhile, India observed two additional Congress governments having a full majority throughout the Lok Sabha. Naturally, the corruption and black money went up, and no matter a rising monetary system, the foreign exchange saved dropping shopping for vitality. In October 1987, Rs 500 notes had been reintroduced. Later, in 2000, Rs 1000 notes had been moreover reintroduced.
Among totally different withdrawals of currencies in the midst of the Congress governments, Rs 1 and Rs 2 notes had been away from circulation in 1995 whereas 25 paise and all paise money beneath this denomination had been withdrawn in 2011.
In early 2014, the Congress-led UPA authorities was in vitality on the Centre with Manmohan Singh as a result of the prime minister. Then, on January 22, 2014, the RBI launched the withdrawal of all pre-2005 notes. It moreover included notes ranging from Rs 10 to Rs 500 and Rs 1000. However, then Congress leaders and their totally different allies did not try and oppose this selection of the federal authorities.
This selection acquired right here merely sooner than the Lok Sabha elections of 2014 – when Narendra Modi had come up as a result of the challenger to this decade-long corruption-hit authorities whose evaluation was left to the historians by then Prime Minister Manmohan Singh himself weeks sooner than taking this selection. Congress leaders and their totally different allies did not try and oppose this selection of the federal authorities in 2014. But they did present a vocal and abusive opposition in 2016 and so they’re repeating the hues and cries in 2023 in the direction of Narendra Modi.
