Post the launch of demonetization, Prime Minister Narendra Modi announced the introduction of new Rs 2,000 in place of old Rs 500 and Rs 1000 currency notes. This drew criticism from all the quarters and people began questioning how could Rs 2,000 note curb Black Money.
Union Deputy Finance Minister Arjun Ram Meghwal disclosed the motive behind introduction of Rs 2,000 note. 'After Rs 1,000 note was introduced in the early 2000, Inflation and Income Growth among Indians began increasing gradually. This led to the increase in Purchasing Power Parity (PPP) over the years. Hence, Rs 2,000 note is being introduced after withdrawal of Rs 500 and Rs 1000 denominations. Centre directed Reserve Bank of India (RBI) to ensure there are abundant Rs 2,000 notes at public disposal,' he explained.
Sadly, Rs 2,000 note became useless as most people were unable to use it for cash transactions. Especially, People in rural areas have no clue how they could use these higher denomination notes for buying household items. Traders aren't ready to accept Rs 2,000 notes due to the shortage of change. How could the poor and middle class overcome this crisis?
Union Deputy Finance Minister Arjun Ram Meghwal disclosed the motive behind introduction of Rs 2,000 note. 'After Rs 1,000 note was introduced in the early 2000, Inflation and Income Growth among Indians began increasing gradually. This led to the increase in Purchasing Power Parity (PPP) over the years. Hence, Rs 2,000 note is being introduced after withdrawal of Rs 500 and Rs 1000 denominations. Centre directed Reserve Bank of India (RBI) to ensure there are abundant Rs 2,000 notes at public disposal,' he explained.
Sadly, Rs 2,000 note became useless as most people were unable to use it for cash transactions. Especially, People in rural areas have no clue how they could use these higher denomination notes for buying household items. Traders aren't ready to accept Rs 2,000 notes due to the shortage of change. How could the poor and middle class overcome this crisis?