Withdrawal of Rs 2,000 notes will have no perceptible effect on economy: Panagariya

The RBIs decision to withdraw Rs 2,000 currency notes from circulation will not have any perceptible effect on the economy as any such notes returned will be replaced by either equivalent cash in lower denomination notes or a deposit, former NITI Aayog Vice Chairman Arvind Panagariya has said.

Panagariya further said the likely motive behind this move is to make the movement of illicit money more difficult.

” We will not see any perceptible effect on the economy. Any currency in Rs 2,000 notes returned will be replaced by either equivalent cash in lower denomination notes or a deposit. So money supply will not be impacted,” he told PTI.

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