The newest annual report from the Reserve Bank of India has provided Opposition parties with more ammo to challenge the BJP-led central government’s demonetization decision in 2016. According to the RBI study, the number of counterfeit notes of all denominations increased in the fiscal year 2021-22. In comparison to the previous year, the RBI found 101.9 percent more bogus notes of Rs 500 denomination and 54.16 percent more phony notes of Rs 2,000 denomination.
Aside from flushing out illicit money, the eradication of counterfeit currency notes was listed as one of the reasons for the central government’s demonetization effort in 2016. In response to the revised statistics, Congress leader Rahul Gandhi tweeted, ‘The only terrible success of demonetization was the TORPEDOING of India’s economy’.
TMC leader Derek O’Brien also tweeted, ‘Mr. Prime Minister, Namaskar. WHAT IS DEMONETIZATION? Do you recall? And how quickly Mamata Banerjee took you on? How you told the country Demo that you would ELIMINATE ALL COUNTERFEIT CURRENCY. Here’s the most recent RBI data, which shows a significant surge in counterfeit notes.’
The government announced the demonetization of all Rs 500 and Rs 1,000 banknotes in November 2016. It also announced the introduction of updated Rs 500 and Rs 2,000 notes. According to the Centre, the measure will eliminate corruption, increase digital transactions, and minimize the use of counterfeit cash. The abrupt announcement of demonetization caused cash shortages and inconveniences as people waited in long lines to exchange their notes. Since then, the subject has been hotly contested.