Rs.2000 notes could be demonetized, says ex-finance secretary 3 years after demonetization

Three years ago, on November 8, the nation witnessed Rs.500 and Rs.1000 notes being demonetized. It was hard times that followed as people could not take cash over Rs.2000 in ATMs and there were long queues to surrender the demonetized notes. The move was made to bring out the black money.

On Thursday, former finance secretary Subhash Chandra Garg told that major part of Rs.2000 notes were not in circulation and that it could be demonetized. He had taken voluntary retirement last month as he was shunted out of high-profile finance ministry, reports Deccan Herald. He was removed from the finance ministry after the Union Budget presentation of Modi's 2.0 government.

“Rs 2000 banknote accounts for approximately 1/3rd of currency notes in circulation in value terms. A good chunk of Rs 2000 notes are actually not in circulation, having been hoarded. Rs 2000 note, therefore, is not presently working as a currency of transaction," he said.

"It can be demonetised, without causing any disruption. A simple method, depositing these notes in the bank accounts (no counter replacement), can be used in manage the process,” he added mentioning that it won't be a hassle like last time.

He also said that the government's fiscal management was not sound and stable and that the levels of deficits and debt which are high and unsustainable.