INR 2000 can be demonetised- Subhash Chandra Garg

As we know that two years back, demonetisation took place in our country and everything changed totally. And now. The demonetizing Rs 2000 notes can be done and this suggestion is given by the former Finance Secretary Mr Subhash Chandra Garg on Thursday.

Mr Garg said- the high debt levels are “a deterrent on our credit ratings” and a big part of the revenues go in serving these debts. He further said there would be no impact of bank consolidation on expansion of credit and that the government’s shareholding in 5-6 large consolidated entities (SBI, BoB and others) should be transferred to “a holding company (Indian Banking and Insurance Assets Corporation)”. left a copy of this note with the senior functionaries of the government” before demitting off-Budget borrowings, payment of food subsidies by extending loans from NSSF, deferring of fertiliser subsidies by enabling availing of loans from banks — all this needs to be discontinued and merged in the goal of 3 per cent,.

He added- “A good chunk of Rs. 2000 notes are actually not in circulation, having been hoarded. Rs 2000 note, therefore, is not presently working as a currency of transaction. It can be demonetised, without causing any disruption.”

He further suggested that forming a land management corporation can be good and a sovereign wealth fund. He is pushing the need to raise the sovereign bond in other country currency.