Rs 2,000 was being primarily used to hoard money:Ex-CEC

Amid worries about the fate of the Rs 2,000 banknotes, experts have a different story to tell.  Former Finance Secretary Subhash Chandra Garg said that the denomination is now at the end of its journey, with the RBI decision only expediting the inevitable. Former CEA Dr Krishnamurthy Subramanian has called the withdrawl of Rs 2000 note is a good one. As the use of the denomination declined, it is being primarily used to hoard money, Dr Subramanian gave six reasons why the move is important. In several raids, Rs 2,000 notes were uncovered proving that the currency was being used primarily for hoarding money. 20% of those who are storing the money in Rs 2000 notes are likely to be hoarders who may account for 80% of the value (~3 lakh crores)," Subramanian said.

RBI's decision to withdraw ₹2000 notes is important because:
(1) The move will help to ferret out a substantive part of the ₹3.6 lakh crores of Currency In Circulation (CiC) in ₹2000 notes currently (refer to the circular below, esp. the highlighted portion). As we have seen… pic.twitter.com/B4uNGCSlkr

— Dr. Krishnamurthy Subramanian (@SubramanianKri) May 19, 2023

He further said, the move will not inconvenience the common people as Rs 2,000 notes are not being used in huge numbers for economic transactions. Dr Subramanian was the chief economic advisor from 2018 to 2021,