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"Financial mismanagement and extravagance" of the LDF government resulted in the financial crisis, said Muraleedharan.
The Reserve Bank of India (RBI) has defended before the high court its notification, saying it is not demonetisation but a statutory exercise.
Money exchangers said that none of the customers are willing to buy the Rs 2000 notes they hold.
The court was hearing a plea by lawyer Ashwini Kumar Upadhyay that the notifications by the RBI and SBI enabling exchange of Rs 2000 banknotes without proof were arbitrary and against the laws enacted to curb corruption.
Onmanorama answers some of the frequently asked questions about the exchange process of Rs 2000 notes.
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Exchanging Rs 2,000 notes will not be allowed, finance dept to issue detailed circular.
Most of the Rs 2,000 notes that were withdrawn expected to be returned by September 30 deadline, says Shaktikanta Das
Ordinary people do not have Rs 2,000 notes as they shunned it soon after it was introduced in 2016, he said, adding they were useless for daily retail exchange.
Public can exchange Rs 2,000 notes up to a limit of Rs 20,000 at a time without a requisition slip, State Bank of India said