Rs 2,000 note was foolish move, glad it has been withdrawn: P Chidambaram

His remarks came after the SBI on May 20 issued a clarification regarding the exchange of Rs 2,000 currency notes

Hitting out at the Centre's move to withdraw the Rs 2,000 banknotes from circulation, senior Congress leader P Chidambaram on Monday said that the Rs 2,000 denomination note "only helped keepers of black money to hoard their money with ease".

Taking to Twitter, the former Union Minister said: "Banks have clarified that no identity, no forms and no proof will be required to exchange the Rs 2,000 notes. The BJP's spin that the Rs 2,000 notes are being withdrawn to unearth black money stands demolished."

"Ordinary people do not have Rs 2,000 notes. They shunned it soon after it was introduced in 2016. They were useless for daily retail exchange."

Also Read | RBI Governor Shaktikanta Das explains why Rs 2,000 notes have been withdrawn

"So, who kept the Rs 2,000 notes and used them? You know the answer."

"The Rs 2,000 note only helped keepers of black money to hoard their money with ease. The keepers of Rs 2000 notes are being welcomed on a red carpet to exchange their notes!"

"So much for the government's declared objective of rooting out black money. The Rs 2.000 note was a foolish move in 2016. I am glad that the foolish move is being withdrawn at least 7 years later."

His remarks came after the State Bank of India on May 20 issued a clarification regarding the exchange of Rs 2,000 currency notes.

Also Read | The ripples from the withdrawal of Rs 2,000 notes

In a circular, the SBI said that people will not be required need to fill out requisition forms if a person wishes to exchange their Rs 2,000 currency notes up to the limit of Rs 20,000 at a time.

On May 19, the Reserve Bank of India (RBI) had announced to withdraw the 2,000 bank notes from circulation and also said that it will continue as legal tender till September 30.

The RBI said that the 2,000 denomination banknote was introduced in November 2016 primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all 500 and 1000 banknotes in circulation at that time.