Andhra Pradesh chief minister N. Chandrababu Naidu has once again demanded scrapping of high denomination currency notes in India and said only ₹100 and ₹200 notes should be in circulation. His statement has put cash transactions, corruption and digital payments back into the public debate.
Speaking at a press conference on Monday, November 9 Naidu said ₹500, ₹1,000 and ₹2,000 currency notes should be scrapped. He said that curbing the circulation of high value cash could tackle corruption and make people use digital payment methods.
“I will keep speaking on this. Notes of Rs 500, Rs 1000 and Rs 2000 should be scrapped. Only notes of Rs 100 and Rs 200 should be kept,” Naidu said.
The TDP chief also recalled his earlier suggestions to PM Narendra Modi about digital currency. He said he had submitted inputs for a report on digital currency and suggested withdrawal of larger denomination notes.
Reducing availability of high-value cash may make it more difficult to do transactions involving large amounts of unaccounted money Naidu said. Technology can help improve governance and tackle economic challenges too, he added.
The Andhra Pradesh Chief Minister said technology if well implemented could create wealth and reduce poverty because “weaknesses in the system have allowed corruption to continue” and technology-driven solutions can help overcome those problems.
Naidu Connects Currency Reform With Election Spending
Apart from currency denominations Naidu also spoke about the influence of money in electoral politics. He said elections should be on public service not financial power.
He said NDA alliance had tried to reduce cash distribution in elections in Andhra Pradesh. “Control of election expenditure can force political representatives to work more on public responsibilities”, he added.
Naidu also said that candidates who spend a lot of money in elections may try to recoup those expenses when they enter public office. Less money power in politics, he says would lead to more accountability among elected representatives.
India's Earlier Demonetisation Exercise
Naidu’s latest comments came a day after the 10th anniversary of India’s demonetisation announcement on November 8, 2016 when the central government withdrew the old ₹500 and ₹1000 currency notes from circulation as part of an anti-black money drive, counterfeit currency and corruption.
New ₹500 notes were issued later along with ₹2,000 notes. However in May 2023 the Reserve Bank of India announced withdrawal of ₹2000 notes from circulation. These notes are still legal tender.
Naidu has been vocal on high-denomination currency issues over the years and has supported greater adoption of digital transactions.
His latest proposal has once again focused attention on the future of cash in India. But his statement is a recommendation not an official government decision to withdraw ₹500 notes or introduce any immediate currency changes.
Whether the Centre will take his proposal seriously is another matter. For now, though, it has raised questions about India’s currency system, digital payments and cash in tackling corruption.
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