Slow withdrawal: on the RBI and the *2,000 note

Without setting a deadline, the Reserve Bank of India could have withdrawn the notes gradually

The Hindu editorial today in Hindi

The Reserve Bank of India’s May 19 announcement that 2,000 banknotes would be withdrawn from circulation, coming just over seven-and-a-half years since the economically deleterious demonetisation of 500 and 1,000 notes, has triggered a sense of déjà vu. While Prime Minister Narendra Modi’s decision in November 2016, to abruptly and completely rescind the legal tender status of the then available high value currency notes was ostensibly aimed at ‘combatting black money and terror financing’, the RBI has asserted that the latest move is in pursuance of its ‘Clean Note Policy’ and does not alter the legal tender status of the withdrawn notes. The central bank has, however, set a September 30 deadline for the exchange or deposit of the withdrawn currency, thereby triggering difficulties for the common individual to continue to use the note. Reports from across the country speak of consumers, including wage earners in sectors such as construction, struggling to pay for the purchase of medicines, petrol and other day-to-day essentials despite the notes continuing to remain legal tender. Given that the RBI has acknowledged that the printing of new *2,000 notes was stopped in 2018-19, the sudden decision to withdraw the notes in circulation has raised questions about the rationale. The RBI stated that about 89% of the 2,000 notes were issued between November 2016 and March 2017 “to meet the currency requirement of the economy in an expeditious manner” following demonetisation and that since then lower denominations had become adequately available, obviating the need for the 2,000 notes.

The Hindu editorial free today

The central bank has also contended that the notes sought to be withdrawn were “at the end of their estimated life-span of 4-5 years”, and that the value of these bills in circulation had declined to *3.62 lakh crore, or 10.8% of the total notes in circulation, as on March 31. A look at previous withdrawals of bills by the RBI shows, for instance, that starting in April 2014, all banknotes issued prior to 2005, or almost a decade earlier, were gradually withdrawn even as they continued to enjoy legal tender status. Even today, lower value bills issued at least as far back as 2013, and which are used far more frequently in everyday transactions, continue to remain in circulation, raising doubts about the RBI’s ‘clean note’ reasoning. The RBI retains the right to issue or withdraw currency bills as it deems fit for the conduct of its policy mandate, but the lack of transparency now, and the administrative flip flops, do little to enhance trust in its “promise to pay the bearer” the note’s face value.

The Hindu Vocabulary PDF 2023

Vocabulary

1. Deadline (noun) Limit, time limit, cut-off- date, समयसीमा

2. Gradually (adverb)– Slowly, progressively, regularly, increasingly, steadily धीरे धीरे

3. Withdrawal (noun) Retraction, removal, extraction, pullback, recall निकासी

4. Circulation (noun) Distribution, dissemination, spreading, diffusion, transmission मुद्राचलन

5. Economically (adverb)– Frugally, efficiently, conservatively, thriftily, sparingly आर्थिक रूप से

6. Deleterious (adjective) Harmful, injurious, detrimental, damaging, ruinous हानिकारक

7. Demonetisation (noun) – the process in which the old notes and coins being used for a currency in an economy is replaced by new ones विमुद्रीकरण

8. Trigger (verb) – Initiate, cause, spark off, set off, incite उत्पन्न करना

9. Déjà vu (noun) – a feeling that one has seen or heard something before HT अहसास कि किसी ने पहले कुछ देखा या सुना है।

10. Abruptly (adverb) – Suddenly, unexpectedly, precipitously, hastily, promptly अचानक

11. Rescind (verb) – Cancel, revoke, repeal, retract, nullify रद्द करना

12. Legal tender (noun) – money, especially a particular coin or banknote, which is officially part of a country’s currency at a particular time

13. Ostensibly (adverb) – Apparently, seemingly, on the surface, to all appearances, presumably प्रकट रूप से

14. Combat (verb) – Fight, battle, confront, contest, oppose लड़ना

15. Assert (verb) – Declare, affirm, state, claim, maintain दावा करना

The Hindu Vocabulary PDF with Hindi Meaning

16. Move (noun) – Action, step, initiative, measure, maneuver कदम

17. In pursuance of (phrase) – In the process of achieving, following, seeking, in accordance with के अनुसार

18. Alter (verb) – Change, modify, adjust, vary, transform परिवर्तन करना

19. Thereby (adverb) – Consequently, as a result, hence, thus, therefore इस प्रकार, जिसके चलते

20. Wage (noun) – Salary, pay, earnings, income, remuneration वेतन

21. Given (preposition) – Considering, taking into account, in view of, bearing in mind, granting देखते हुए

22. Acknowledge (verb) – Recognize, accept, admit, concede, confirm स्वीकार करना

23. Rationale (noun) – Reason, basis, justification, explanation, logic , कारण मूलाधार

24. State (verb) – Declare, announce, proclaim, express, assert कहना, प्रकट करना

25. Expeditious (adjective) – Quick, swift, rapid, prompt, fast तेज/जल्दी से

26. Following (preposition) – After, subsequent to, succeeding, in the wake of, post के बाद

27. Denomination (noun) – Type of currency

28. Adequately (adverb) – Sufficiently, suitably, satisfactorily, appropriately पर्याप्त रूप से

29. Obviate (verb) – Prevent, avoid, avert, stave off, preclude रोकना, टालना

30. Contend (verb) – Argue, assert, maintain, insist, claim दावा करना

31. Seek (verb) – try, attempt, endeavour, प्रयास करना

32. Estimated (adjective) – Approximated, calculated, projected, predicted, expected अनुमानित

33. Life-span (noun) – Duration, length of life, lifetime, existence आयु

34. Bills (noun) – Notes, currency, cash, money, banknotes नोट

35. For instance (phrase) – For example, as an example, such as, like उदाहरण के लिए

36. Prior (to) (preposition) – Before, preceding, earlier than, ahead of पहले

37. Decade (noun) – Ten years, ten-year period दशक

38. Reasoning (noun) – Thinking, thought process, logic, rationality तर्क

39. Retain (verb) – Keep, maintain, preserve, hold on to बनाए रखना

40. Deem (verb) – Consider, regard as, view as, see as मानना

41. Mandate (noun) – Authority, directive, command, instruction, order आदेश

42. Transparency (noun) – Clarity, openness, honesty, accountability, clearness पारदर्शिता

43. Administrative (adjective) – Managerial, executive, organizational, supervisory, bureaucratic प्रशासनिक

44. Flip-flops (noun) – Reversal, U-turn, volte- face, about-face, backtracking पलटाव

45. Enhance (verb) Improve, amplify, augment, boost, elevate बढ़ाना

46. Pay the bearer (noun) – it means the giver of currency note promise to receiver(bearer) of that note to give money mentioned on that currency note.

47. Face value (noun) – the value printed or depicted on a coin, banknote, postage stamp, ticket, etc., especially when less than the actual value. अंकित मूल्य

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