Sitharaman slams Chidambaram for his comments on Rs 2,000 currency note withdrawal

Former finance minister P Chidambaram on Monday termed the withdrawal of Rs 2,000 notes as "a foolish decision" and said the move cast doubts on the integrity and stability of the Indian currency.

“Introduction of the Rs 2,000 note and the mortifying spectacle of withdrawing the note have cast doubt on the integrity and stability of India’s currency,” Chidambaram said at a media conference in Mumbai.

Rs 2000 banknote was introduced in 2016 following the demonetisation of hitherto 500 and 1000 rupees notes. Earlier, this month the Reserve Bank of India (RBI) announced withdrawal of Rs 2000 notes from circulation. The RBI has set a September 30 deadline for the withdrawal of the highest denomination currency.

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Defending the RBI’s action, Union Finance Minister Nirmala Sitharaman said the introduction of Rs 2,000 notes was an attempt of remonetisation and the RBI has achieved that objective.

Reacting on Chidambaram’s remark, Sitharaman said he should not make frivolous statements and understand the process.

“To cast aspersions on the matters of this nature, currency, decision of the central bank does not augur well with the former finance minister,” Sitharaman told reporters in Mumbai.

Meanwhile, the Delhi High Court on Monday dismissed a public interest litigation (PIL) challenging the RBI and State Bank of India (SBI) notifications that permit exchange of Rs 2000 notes without any ID proof.

Terming the Rs 2000 notes withdrawal pure policy decision, a division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad observed: “It cannot be said that the decision of the government is perverse or arbitrary or it encourages black money, money laundering, profiteering or it abets corruption.”