Finance Minister Sitharaman Slams Chidambaram's Remarks On Rs 2,000 Note Withdrawal

The government's firm stance reflects its commitment to defending the withdrawal as a necessary step in currency management.

Outlook Web Desk

Updated on: 29 May 2023 10:16 am

Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has taken a strong stance against Congress leader P Chidambaram's comments regarding the withdrawal of the Rs 2,000 currency note.According to the reports by Money Control,?Speaking during a press conference in Mumbai on May 29, Sitharaman criticized Chidambaram for what she deemed as "frivolous" remarks. She highlighted that the decision to withdraw the high-value note was made by the Reserve Bank of India (RBI) after the note had served its intended purpose, following the government's demonetization announcement in November 2016.

Sitharaman emphasized that currency matters are sovereign and that decisions regarding currency are taken by the central bank. The government's permission is sought when considering the continued use of a note as legal tender. She urged everyone to understand the situation and provide observations that are appropriate for the office Chidambaram held, rather than making casual comments.

Chidambaram had earlier expressed doubts about the integrity and stability of India's currency, calling the introduction and subsequent withdrawal of the Rs 2,000 note "thoughtless" and "foolish." In response, Sitharaman highlighted the extensive period during which Chidambaram served as finance minister and the lack of substantial answers provided during parliamentary inquiries.

The RBI announced on May 19 that the Rs 2,000 notes would be withdrawn, allowing citizens until September 30 to exchange or deposit them while remaining legal tender. Sitharaman's criticism of Chidambaram's comments reflects the government's firm stance on the decision and its commitment to defending it as a necessary step in currency management.

(With PTI Inputs)