Withdrawal of Rs 2000 note will not have a direct impact on the economy: Panagariya.

New Delhi. Former Vice Chairman of NITI Aayog Arvind Panagariya has said that the Reserve Bank of India’s (RBI) decision to recall Rs 2000 currency notes will not have any direct impact on the economy as such withdrawn notes can be replaced by notes of lower denominations at the same price. Will be given

Panagariya said the possible motive behind the move is to make movement of illicit money more difficult. “We will not see any direct impact on the economy. Any amount of Rs 2,000 notes will be exchanged for notes of lower denominations of equal value or deposited. So the money flow will not be affected.”

Panagariya said that Rs 2,000 notes currently account for only 10.8 per cent of the total cash in the hands of the public and most of this amount is probably used in illegal transactions. was announced.

Notes of this value can be deposited or exchanged in banks till September 30. The RBI said in a statement released in the evening that the Rs 2,000 notes currently in circulation will remain legal tender till September 30.

Inputs From: The Economic Times

Read the Latest India News Today on The Eastern Herald.