Chandrababu Naidu Calls For Scrapping Rs 500 And Rs 2,000 Notes To Combat Corruption

Andhra Pradesh Chief Minister N Chandrababu Naidu has renewed his call for India to phase out high-denomination currency notes, arguing that restricting the circulation of large-value cash could help tackle corruption and support wealth creation and poverty reduction.

Naidu made the proposal on Monday while advocating greater adoption of digital currency and technology-based governance. He said he had previously contributed inputs to a report on digital currency and had raised the matter with Prime Minister Narendra Modi. He maintained that he would continue pressing the government to consider the proposal.

"I was the one who gave inputs for the digital currency report. I had urged the Prime Minister to consider this earlier, and I am demanding it again now. I will keep raising this issue. Currency denominations of Rs 500, Rs 1,000 and Rs 2,000 should be scrapped. Only Rs 100 and Rs 200 notes should remain," he said.

His remarks came a day after the 10th anniversary of the November 8, 2016, demonetisation exercise, when the Centre withdrew Rs 500 and Rs 1,000 notes from circulation. The move was announced as an effort to tackle black money, counterfeit currency and corruption.

Chandrababu Naidu Backs Digital Currency To Tackle Corruption

The Telugu Desam Party (TDP) chief argued that effective use of technology could address several economic and administrative challenges, making it easier to generate wealth and eradicate poverty.

"If technology is implemented perfectly, wealth creation is not difficult and eradicating poverty is not difficult either," he said.

Naidu attributed persistent corruption to weaknesses in systems across different levels of governance. According to him, these shortcomings had created a recurring cycle of corruption, which he had previously attempted to address through corrective measures.

"Since systems everywhere have become flawed, leading to a vicious circle of corruption, I tried to put a check on that," he said.

He reiterated that digital currency and technology-led administration should play a central role in improving governance and tackling corruption.

Naidu Calls For Election Spending Reforms And Politics Of Service

Beyond currency reforms, the Andhra Pradesh Chief Minister called for changes to India's electoral system, saying political activity should be centred on public service rather than financial influence.

He credited the National Democratic Alliance (NDA) with initiating efforts to discourage the distribution of cash during elections. Naidu argued that limiting campaign expenditure would improve accountability and encourage elected representatives to prioritise their responsibilities towards the public.

"We, the NDA, have initiated a new trend in politics. Politics should not be about money; it should be done with a spirit of service," he said.

Naidu described the distribution of money to voters during elections as unacceptable and said the NDA had made considerable progress in restricting the practice.

He also linked high election expenditure to the behaviour of political representatives after winning office. According to him, candidates who invest substantial amounts of money in their campaigns may develop an expectation of recovering those expenses once they enter government.

"The spirit of service among leaders will increase. The thought of 'I spent money, so I must also collect it back this way' will go away," he said.

Andhra Pradesh CM Says Electoral Reforms Can Change Political Culture

Naidu said reducing the cost of contesting elections could help change the approach of political leaders and strengthen the emphasis on serving citizens.

He also referred to his efforts over the past 24 years to address election-related practices, saying he had repeatedly explored ways to bring about changes in the political system.

Reaffirming his position on digital currency, Naidu maintained that technology-based financial and governance systems could help tackle corruption while creating better conditions for economic development and poverty eradication.

His latest remarks bring together two key proposals he has advocated: reducing the role of physical high-value cash in the economy and limiting money's influence over electoral politics.