{"id":17208,"date":"2023-05-23T19:34:10","date_gmt":"2023-05-23T14:04:10","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?p=17208"},"modified":"2023-06-26T05:51:45","modified_gmt":"2023-06-26T00:21:45","slug":"slow-withdrawal","status":"publish","type":"editorial-analysis","link":"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/slow-withdrawal","title":{"rendered":"Slow withdrawal"},"content":{"rendered":"<p><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Reserve Bank of India\u2019s recent announcement that \u20b92,000 banknotes would be withdrawn from circulation has triggered a sense of d\u00e9j\u00e0 vu.\u00a0<\/span><\/p>\n<p><b>How is it different from 2016 Demonetisation?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Prime Minister\u2019s decision in November <\/span><b>2016<\/b><span style=\"font-weight: 400;\">, to abruptly and completely rescind the legal tender status of the then available high value currency notes was ostensibly aimed at <\/span><b>\u2018combating black money and terror financing\u2019,<\/b><span style=\"font-weight: 400;\"> while the <\/span><b>RBI<\/b><span style=\"font-weight: 400;\"> has asserted that the latest move is in pursuance of its <\/span><b>\u2018Clean Note Policy\u2019<\/b><span style=\"font-weight: 400;\"> and <\/span><b>does not alter the legal tender status of the withdrawn notes.\u00a0<\/b><\/li>\n<\/ul>\n<p><b>Issue:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Reports from across the country speak of consumers, including wage earners in sectors such as construction, <\/span><b>struggling to pay<\/b><span style=\"font-weight: 400;\"> for the purchase of medicines, petrol and other day-to-day essentials <\/span><b>despite the notes continuing to remain legal tender.\u00a0<\/b><\/li>\n<\/ul>\n<p><b>Conclusion:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The RBI retains the right to issue or withdraw currency bills as it deems fit for the conduct of its policy mandate, but the lack of transparency now, and the administrative flip flops, do little to enhance trust in its \u201cpromise to pay the bearer\u201d the note\u2019s face value.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Clean Note Policy:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The policy was <\/span><b>introduced in 1999<\/b><span style=\"font-weight: 400;\"> by the <\/span><b>then RBI Governor Bimal Jalan.<\/b><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It seeks to give the public good-quality currency notes and coins with <\/span><b>better security features,<\/b><span style=\"font-weight: 400;\"> while soiled notes are withdrawn out of circulation.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b><i>News Source: <\/i><\/b><a href=\"https:\/\/www.thehindu.com\/opinion\/editorial\/slow-withdrawal-on-the-rbi-and-the-2000-note\/article66881113.ece\" target=\"_blank\" rel=\"noopener\"><b><i>The Hindu<\/i><\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: The Reserve Bank of India\u2019s recent announcement that \u20b92,000 banknotes would be withdrawn from circulation has triggered a sense of d\u00e9j\u00e0 vu.\u00a0 How is it different from 2016 Demonetisation? The Prime Minister\u2019s decision in November 2016, to abruptly and completely rescind the legal tender status of the then available high value currency notes was&hellip; <a class=\"more-link\" href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/slow-withdrawal\">Continue reading <span class=\"screen-reader-text\">Slow withdrawal<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[1109,980,260,1108],"paper-wise":[],"subject":[],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis\/17208"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/editorial-analysis"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=17208"}],"version-history":[{"count":0,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/editorial-analysis\/17208\/revisions"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=17208"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=17208"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=17208"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=17208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}