New Delhi, May 29, 2023: In a recent development, the Delhi High Court has dismissed a plea challenging notifications issued by the Reserve Bank of India (RBI) and State Bank of India (SBI) that allow the exchange of Rs 2,000 currency notes without the requirement of a requisition slip and identity proof. The bench comprising Chief Justice Satish Kumar Sharma and Justice Subramonium Prasad rejected the petition, asserting that the notifications are a statutory exercise and not a demonetization measure.
The petitioner and advocate, Ashwini Kumar Upadhyay, had raised concerns about the potential misuse of this provision, alleging that a significant amount of currency may have been hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafias, and corrupt individuals. Upadhyay argued that the notifications were arbitrary, irrational, and violated Article 14 of the Constitution, which guarantees equality before the law.
However, the RBI defended its notification before the high court, clarifying that the measure was not aimed at demonetization but was part of a statutory exercise. The central bank emphasized that the objective was to streamline the circulation of currency and facilitate transactions without causing inconvenience to the public.
The court’s decision comes as a blow to those seeking to challenge the notifications. While the detailed order is yet to be issued, the dismissal of the plea suggests that the court found no merit in the arguments presented against the exchange of Rs 2,000 notes without the need for a requisition slip and identity proof.
The exchange of currency notes without additional requirements has been a topic of debate since the introduction of the new Rs 2,000 notes. Critics argue that it opens the door to potential misuse and money laundering, while proponents highlight the convenience it provides to individuals conducting legitimate transactions.
It is worth noting that the RBI and SBI, as the central bank and one of the largest commercial banks in India, respectively, hold significant responsibility in managing the country’s currency circulation. The notifications in question were aimed at facilitating the smooth functioning of the economy while maintaining vigilance against illicit activities.
As the detailed order from the Delhi High Court is awaited, this development is likely to spark further discussions and debates surrounding the exchange of Rs 2,000 notes without the requirement of a requisition slip and ID proof. The court’s decision will also have implications for the ongoing efforts to strike a balance between convenience and security in India’s financial system.
