An Indian man puts a new 2000 rupee note in his wallet after exchanging his old 500 and 1000 rupee notes at a bank in New Delhi on November 10, 2016. | AFP 
Nation

Rs 2,000 note only a stopgap arrangement: Gurumurthy

Gurumurthy's remarks came after the government's contradictory stand that it was demonetising Rs 1,000 notes since higher denomination currency encouraged black money.

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NEW DELHI: RSS ideologue S. Gurumurthy on Monday said the newly issued Rs 2,000 currency note is a "stopgap arrangement" to tide over the cash crunch after demonetisation, and it will ultimately be withdrawn by the government, albeit gradually.

Gurumurthy, who is said to be in the loop all through the demonetisation process, said in an interview with India Today news channel that the Rs 2,000 note was introduced only to meet the demand-supply gap after Rs 500 and Rs 1,000 notes were sucked out of circulation.

He said the banks would be asked to hold back Rs 2,000 notes and replace them with lower denomination notes.

"Obviously, the banks will be told not to return Rs 2,000 notes they receive. Slowly, the banks will accumulate Rs 2,000 notes and replace them with lower denomination notes," said Gurumurthy, a prominent member of the Rashtriya Swayamsevak Sangh-backed think tank Vivekananda International Foundation (VIF).

He said the government would be phasing out Rs 2,000 notes and not demonetising them.

"We have phased out many series of notes like this in the past," he said.

Gurumurthy said the government was committed towards lower denomination currency.

Gurumurthy's remarks came after the government's contradictory stand that it was demonetising Rs 1,000 notes since higher denomination currency encouraged black money, but instead introduced Rs 2,000 note.

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