Withdrawal of Rs 2,000 note casts doubt on integrity of currency: Chidambaram

MUMBAI: Senior Congress leader P Chidambaram on Monday said the introduction of Rs 2,000 note and its subsequent withdrawal have cast doubt on the integrity and stability of the Indian currency.

Addressing a press conference here, the former Union finance minister said the key economic indicators are pointing downward and there is low confidence that the economy will reach the high growth path.

He also said the situation in Manipur, where recent ethnic clashes have claimed more than 75 lives, was alarming and questioned the continued silence of Prime Minister Narendra Modi.

Governance and policies in a secular, democratic country must give rise to a tide that will lift all boats. In that view, the NDA government has totally failed in the last nine years, he said. What is worse is that the government does not even make an effort to correct its mistakes and govern for all the people, he said.

The Reserve Bank of India recently announced withdrawal of Rs 2000 notes from circulation and asked people to deposit it in banks or get it exchanged by September 30.

“The thoughtless - some would even say foolish - introduction of the Rs 2,000 note (which the people shunned) and the mortifying spectacle of withdrawing the note have cast doubt on the integrity and stability of India’s currency,” Chidambaram said.

The first three quarters of 2022-23 recorded growth rates of 13.2, 6.3 and 4.4 per cent, a declining trend. The present situation is a far cry from the average of nine per cent growth rate that marked the boom years between 2004 and 2009, he said. The Indian economy is growing modestly at a much-reduced pace facing serious issues of unemployment, inflation, widening inequalities and stumbling welfare programmes, he said.

‘We are pained and shocked that the leadership of the NDA government has remained silent while the situation in the country has deteriorated year after year,” he said.

FM Sitharaman slams Chidambaram’s comments on currency withdrawal

Union Finance Minister Nirmala Sitharaman criticised P Chidambaram over his comments on the withdrawal of Rs 2,000 currency note and said to cast aspersions on matters of this nature “does not augur well with the former finance minister”. Asked about Chidambaram’s comments, Sitharaman said, “The (UPA) government lasted for 10 years, in which for a large part he was finance minister. There were several questions we had raised in Parliament and we never had a substantial answer for them,” she said.