RBI Asserts It’s Not Demonetisation, Court to Issue Order
The Delhi High Court is currently deliberating over a public interest litigation (PIL) petition challenging the Reserve Bank of India’s (RBI) decision to withdraw ₹2,000 currency notes from circulation. The court has reserved its verdict following arguments presented by both sides.
Senior Advocate Parag Tripathi, appearing on behalf of the RBI, emphasized that the withdrawal of ₹2,000 notes was a statutory exercise and should not be considered as a form of demonetization. Tripathi defended the RBI’s notification as a necessary step taken by the central bank.
A Division Bench comprising Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad announced that it would issue appropriate orders regarding the matter.
The PIL was filed by Ashwini Kumar Upadhyay, a Bharatiya Janata Party (BJP) leader and advocate. Upadhyay argued that the RBI’s decision allowed for the exchange of notes without requiring a requisition slip or proof of identity, which he deemed arbitrary and irrational.
In his plea, Upadhyay highlighted that the RBI’s admission in paragraph 2 of its notification stated a decline in the total value of ₹2,000 banknotes from ₹6.73 lakh crore to ₹3.62 lakh crore. He alleged that a substantial portion of the currency, approximately ₹3.11 lakh crore, was either stashed away in individual lockers or hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafias, and corrupt individuals.
Upadhyay clarified that his challenge was not directed at the notification as a whole but specifically against the provision allowing currency exchange without proof of identity.
“This is the first time that people can come to banks with money and get it exchanged. Gangsters, mafias, and their associates can come and get their money exchanged,” Upadhyay asserted during the hearing.
On May 19, the RBI had officially announced the withdrawal of ₹2,000 notes while clarifying that the currency would still be considered legal tender. The central bank advised individuals to deposit the banknotes into their accounts or exchange them for other denominations at bank branches.
As the Delhi High Court reserves its verdict on the PIL, the outcome of this case will determine the fate of the RBI’s decision to withdraw ₹2,000 notes and the provision allowing currency exchange without proof of identity. The court’s ruling is eagerly awaited, as it will have significant implications for the circulation and usage of the ₹2,000 currency notes in the country.
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