Another Demonetization in India? Chandrababu Naidu Urges Centre to Discontinue ₹500 Note to Combat Corruption
KADAPA, ANDHRA PRADESH — Telugu Desam Party (TDP) president and Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged the Central Government to abolish ₹500 currency notes alongside all high-denomination currency, advocating a nationwide shift to digital transactions to eliminate black money and electoral corruption.
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The Call to Discontinue ₹500 Note: A Strategy Against Corruption
Addressing TDP’s annual Mahanadu conclave in Kadapa on Tuesday, Naidu declared high-value notes fuel corruption and vote-buying. He argued that with digital payments now pervasive, physical cash—especially ₹500, ₹1,000, and ₹2,000 notes—must be phased out:
“After submitting our report [to PM Modi in 2017], I requested that ₹2,000 and ₹500 notes be banned. Digital currency traces illegal transactions and catches the corrupt. Today, I reiterate: We don’t need these notes anymore.”
Why Push to Discontinue ₹500 Note?
Naidu’s demand targets three critical issues:
- Curbing Black Money: High-denomination notes enable hoarding and illicit transactions .
- Cleaning Elections: Cash distribution influences voting; digital donations ensure transparency in political funding .
- Cost Efficiency: Printing and securing physical currency burdens the economy. Digital alternatives reduce these expenses .
A Long-Standing Campaign
This is not Naidu’s first demonetization push:
- 2016: Advised PM Modi to scrap ₹500/₹1,000 notes pre-demonetization .
- 2017: Criticized introducing ₹2,000 notes, calling them “counterproductive” .
- 2023: Supported RBI’s withdrawal of ₹2,000 notes but insisted ₹500 notes must follow .
Andhra’s Digital Governance Model
Naidu highlighted his state’s anti-corruption measures:
- Digital Donations: TDP now accepts contributions only via phone-based bank transfers .
- WhatsApp Governance: State officials report work transparently through messaging platforms to deter malpractice .
- Welfare Reforms: Andhra routes welfare payments digitally, ensuring direct beneficiary access .
Political Implications
As a key NDA ally with 16 Lok Sabha seats, Naidu’s demand pressures the Centre. He emphasized that discontinuing ₹500 notes would force parties to embrace clean politics:
“If big notes are banned, no party can distribute money in elections. Carrying ₹100 notes in bulk is impractical” .
Naidu’s proposal aligns with global trends toward digital currencies. With the ₹2,000 note already phased out in 2023, he asserts India must complete the transition: “Only then can we root out corruption” . The ball now lies in the Centre’s court.
