Mumbai: Union Finance Minister Nirmala Sitharaman on Monday criticised Congress leader P Chidambaram over his comments on the withdrawal of the Rs 2,000 currency note and said to cast aspersions on matters of this nature “does not augur well with the former finance minister”.
The Reserve Bank of India has already explained the rationale behind the decision, she said.
The Union minister was speaking to reporters here as a part of press conferences being held by Union ministers in different parts of the country on the completion of nine years of the Narendra Modi government.
Chidambaram on Monday said the introduction of Rs 2,000 note and its subsequent withdrawal have cast doubt on the integrity and stability of the Indian currency.
He also said key economic indicators are pointing downward and there is low confidence that the economy will reach the high growth path.
The Reserve Bank of India on May 19 announced the withdrawal of Rs 2000 notes from circulation and asked people to deposit or get them exchanged in banks by September 30.
Asked about Chidambaram’s comments, Sitharaman said, “To cast aspersions on the matters of this nature, currency, decision of the central bank does not augur well with someone who was with the (finance) ministry.”
“The (UPA) government lasted for 10 years, in which for a large part he was finance minister. There were several questions we had raised in Parliament and we never had a substantial answer for them,” she said.
“I would think it is better for all of us to understand the situation and provide observations which are commensurate with the office he had held and not be frivolous about commenting and judging it,” Sitharaman said.
When asked about the decision to discontinue the Rs 2,000 currency note, Sitharaman said, “The Reserve Bank of India has come up with a clean note policy. After the note ban, there was need for remonetisation (for introducing Rs 2,000 currency note). The RBI has explained it. The lifespan of the current currency note has been achieved hence the notes are withdrawn from circulation.”
Currency is a sovereign business of the government and the decision on withdrawal of notes is taken by the central bank, she said. The Union government as well as the RBI are following the processes duly, Sitharaman said.
The finance minister also rejected the Congress’ claim that it wants to repeat its victory in Karnataka polls in other parts of the state. She said, “It is not like an experiment successful in one state will be equally successful in other states. Congress needs to look into its own matters..”
Responding to a query on inflation, Sitharaman said, “The inflation data indicates that it is already 4.8 per cent. The wholesale price index is closer to negative territory.”
Follow on Twitter | Posted by Neha Khan | 
