Finance Minister Nirmala Sitharaman has hit out at one of her predecessors, Congress leader P Chidambaram, for what she said were "frivolous" comments on the withdrawal of the Rs 2,000 currency note.
Speaking to the media in Mumbai on May 29, Sitharaman said the decision to withdraw the high-value note was taken by the Reserve Bank of India (RBI) as the purpose of the note — introduced in November 2016 following the government's demonetisation announcement — had been served.
"Currency is a sovereign business. And decision on the currency is taken by the central bank. When it is a question of continuing it as legal tender, the government's permission is sought. So these are processes and due diligences which both the RBI and the government will follow duly," Sitharaman said.
Earlier in the day, Chidambaram said the "thoughtless — some would even say foolish — introduction of the Rs 2,000 note and the mortifying spectacle of withdrawing the note have cast doubt on the integrity and stability of India's currency".
When asked to comment on these remarks, Sitharaman said a former finance minister casting aspersions on matters of this nature was disappointing.
"A government which lasted for 10 years in which for a large part he was the finance minister... there are several questions which we raised in the Parliament. We have not had a substantial answer coming from them. So I would think it is better for all of us to understand the situation and provide observations which are commensurate with the office that he held and not be frivolous about commenting and judging things," Sitharaman said.
The RBI on May 19 announced the withdrawal of the Rs 2,000 notes, giving citizens time until September 30 to exchange or deposit the note, which continues to be a legal tender.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
