Gurumurthy, a prominent member of RSS backed Vivekananda international foundation said that the new Rs.2000 note, which has recently been circulated as new currency, will ultimately be withdrawn from the economy. However, he clarifies that this note will be withdrawn and not demonetized.
Banks will be instructed to hold back Rs.2000 notes on deposition and not to circulate them again. Instead low denomination currency shall be issued. Thus, the ideology behind introducing the bigger denomination of Rs.2000 was just to cover the cash crunch after demonetization of Rs.500 and Rs.1000 currency notes. It was only to meet the demand-supply gap after old currency was removed from the economy.
He made this remark after many critics pointed out that introducing a higher denomination note will instead promote accumulationn of black money.
“We have phased out many series of notes like this in the past”, Gurumurthy said.