In a sudden decision, Prime Minister Narendra Modi had withdrawn the old Rs 500 and Rs 1000 notes from the economy and brought in place the new Rs 2000 notes. But just a few months down the lane, it seems that the government is planning to pull out the new Rs 2000 notes as well.
The decision, as per reports, may be taken to curb the fresh generation of black money. The Central government is also planning to bring laws to take penal action against those who are hoarding the new Rs 2,000 note, says a report in The Statesman.
The report said that the Rs 2000 note was brought by the government to remonetise the economy and bring currency into circulation.
While announcing the withdrawal of the old currency, the Prime Minister had said that this is not a one-off step and more measures will be taken to eradicate black money from the economy. The flow of money is being monitored by the Income Tax department and there is a possibility that a strict penalty would be imposed on people if they hoard Rs 2000 notes.
When the new Rs 2000 note was introduced, it had drawn severe criticism from various corners. Apart from the difficulty in the handling of a high-currency note, there were also murmurs that it will increase illegal dealings and increase black money generation.
The government led by Narendra Modi is also trying to reach out to people to increase the number of digital transactions in the economy. On several occasions, he has urged people to use less cash and indulge in more digital transactions for their day-to-day dealings.