'India needs Rs 1,000 notes,' say netizens after RBI withdraws Rs 2,000 currency

The Reserve Bank of India's (RBI) move to withdraw Rs 2,000 currency notes has sparked speculations that the central bank may re-introduce Rs 1,000 notes in the future. The central bank on Friday announced the withdrawal of Rs 2,000 currency notes but said it will be legal tender. Rs 2,000 notes, the highest denomination in circulation, were introduced after the demonetisation of Rs 500 and Rs 1,000 currency notes in November 2016.

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Hours after the RBI's move, former Finance Minister P Chidambaram on Friday said he won't be surprised if Rs 1,000 notes were re-introduced by the government/RBI. He said Rs 2,000 note was hardly a popular medium of exchange and it was a band-aid to cover up the "foolish decision" of demonetising Rs 500 and Rs 1000 notes which were popular and widely exchanged currencies. Chidambaram said a few weeks after the demonetisation, the government/RBI was forced to re-introduce the Rs 500 note. "I shall not be surprised if the government/RBI re-introduced the Rs 1000 note as well," the former minister said.

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Reacting to his tweet, Sachin Agarwal, a Twitter user, said that after demonetisation of 2016, one picture of a new currency note of Rs 1,000 was circulating on WhatsApp. "Green color shade. Let's see if that becomes a reality again," he tweeted.

After the withdrawal of Rs 2,000 notes, Rs 500 notes will be the higher currency denomination in India.

Vishnu, another user, said the government needs to print higher denomination notes because the currency is losing value due to inflation. He said the government will issue Rs 1,000 currency notes in the near future. "If you understand inflation you will never demand Note Ban. Actually, we need to print higher denomination notes because the currency is losing Value due to Inflation. We will see Rs 1000 note again in the near future. That is how the economy works."

Roshan K Kewalramani said he was waiting for Rs 1,000 polymer notes on Diwali 2023.

Another user said that the withdrawal of Rs 2,000 from the circulation will "not serve any purpose". "Common sense is very uncommon. Now wait and watch. RS.1000 note will be printed.  When the Rs2000 note still has a circulatory life why withdraw?"

Former Finance Secretary Subhash Chandra Garg recently said that the withdrawal of Rs 2,000 currency notes was a 'non-event' and will have zero impact on the economy and monetary policy. He said Rs 2,000 currency note was brought in at the time of demonetisation for 'accidental reasons' to meet the temporary currency shortage. "Neither will it affect the operation of India's economic and financial system. There is going to be zero impact on GDP growth or public welfare," said Garg, who served as finance secretary from March to July 2019.

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Reacting to this, PP Chadha, a Twitter user, said: "The point is that the highest currency note will be just Rs 500. Not everyone uses UPI etc for payments. I think the Govt should relaunch the Rs 1000 note. But will it? May look like they blundered in the past by scrapping it."

Sambhy Yuvraj, a retired biotechnologist, said there is a need to have a higher denomination note that is more than Rs 500 due to the costs of living. Govt should first bring Rs 1,000 note and then think of removing Rs 2000 after consultation with public/stakeholders," he said in a tweet.