Vishwaguru’s First Act, Second Think (FAST) Policy Leads to Withdrawal of Rs 2000 Notes
The Reserve Bank of India (RBI) has announced that it will withdraw the Rs 2000 denomination banknotes from circulation. The decision was taken at a meeting of the RBI’s Central Board of Directors on May 18, 2023.
The RBI said that the withdrawal of Rs 2000 notes is being done in order to “curb the menace of counterfeit currency” and to “make the currency system more efficient”. The notes will continue to be legal tender till September 30, 2023, after which they will cease to be legal tender.
The withdrawal of Rs 2000 notes is a major policy reversal for the government, which had introduced the notes with much fanfare in November 2016. The notes were introduced as part of a demonetization drive that was aimed at curbing black money and counterfeit currency. However, the demonetization drive was widely criticized for causing widespread economic disruption.
The withdrawal of Rs 2000 notes is likely to have a significant impact on the Indian economy. The move is likely to lead to a short-term decline in economic activity, as businesses and consumers adjust to the change. However, in the long term, the withdrawal of Rs 2000 notes is likely to be positive for the economy, as it will lead to a more efficient currency system and a reduction in counterfeit currency.
The withdrawal of Rs 2000 notes is also a major embarrassment for the government. The move comes at a time when the government is facing criticism for its handling of the economy. The withdrawal of Rs 2000 notes is likely to further erode public confidence in the government’s economic policies.
The withdrawal of Rs 2000 notes is a classic example of the government’s “First Act, Second Think (FAST)” policy. The government often acts without thinking through the consequences of its actions. This has led to a number of policy reversals, which have damaged the government’s credibility.
The withdrawal of Rs 2000 notes is a reminder that the government needs to be more careful in its decision-making. The government should not act without thinking through the consequences of its actions. Otherwise, it will continue to make policy reversals that damage the economy and erode public confidence.