The Reserve Bank of India (RBI) told the Delhi High Court on Tuesday that Withdrawal of ₹2,000 notes Demonetization is not a statutory exercise, and the decision to enable their exchange was taken for operational convenience.
The court was hearing a plea by advocate Ashwini Kumar Upadhyay that the notification by RBI and SBI to exchange Rs 2,000 notes without proof was arbitrary and against laws meant to curb corruption.
A bench of Chief Justice Satish Chandra Sharma and Justice Subramaniam Prasad said it would pass appropriate orders on the PIL by the lawyer.
“We will look into it. We will pass appropriate orders,” the court said.
Mr Upadhyay clarified that he was not challenging the decision to withdraw the ₹2,000 bank note, but the exchange of currency without any slip or identity proof. He insisted that Rs 2,000 notes should be allowed to be exchanged through bank account deposits.
“Why ID proof has been excluded? Every poor has a Jan Dhan account. BPL persons are also linked with bank accounts,” Mr Upadhyay said, claiming that the current system is only for “Atiq Ahmed’s henchmen” like mafias and gangsters. Will enable only. Naxalite.
Senior advocate Parag P Tripathi, appearing for RBI, emphasized that the court cannot interfere in such matters and the decision to allow the exchange of ₹2,000 notes was taken for operational convenience.
“It is not demonetisation. ₹2,000 notes were not commonly used. Other denominations continue to meet currency requirements,” he said.
“This is a statutory exercise. None of the points claimed by the petitioner affect or deal with constitutional issues,” Mr. Tripathi said.
“Arguments heard. Judgment reserved,” the court said after hearing the parties.
The petitioner has argued in his plea that the notifications by RBI and SBI enabling exchange of ₹2,000 notes without the required slip and identity proof are arbitrary, irrational and violative of Article 14 of the Constitution of India.
The petition states that a large amount of currency has either reached the individual’s locker or has been “hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafia and corrupt people”.
The petition highlights that cash transactions in high value currency are the main source of corruption and have been used for activities like terrorism, naxalism, separatism, radicalism, gambling, smuggling, money laundering, kidnapping, extortion, bribery and dowry etc. carried out for illegal activities. RBI and SBI should ensure that ₹2,000 notes are deposited in the respective bank accounts only.
“Recently, it was announced by the Center that every household should have an Aadhaar card and a bank account. Hence, why RBI is allowing ₹2,000 notes to be exchanged without obtaining identity proof. It is also necessary to explain That 80 crore BPL families get free food grains.” This means that 800 million Indians rarely use Rs 2,000 notes. Therefore, the petitioner has also sought a direction to RBI and SBI to take steps to ensure that Rs 2000 notes are deposited only in bank accounts.
The petition states that depositing Rs 2,000 notes in bank accounts will ensure that black money and people with disproportionate assets can be easily identified.
On 19 May, the Reserve Bank of India (RBI) announced the withdrawal of ₹2,000 currency notes from circulation, and said that the existing notes in circulation could either be deposited in bank accounts or exchanged by 30 September May go.
The RBI said in a statement that Rs 2,000 notes will continue to be legal tender.
In order to ensure operational convenience and avoid disruption of routine activities of bank branches, RBI has said that ₹2,000 banknotes can be exchanged for banknotes of other denominations at any bank. From 23 May.
State Bank of India (SBI) has informed in a letter to the Chief General Managers of all its local head offices that the facility to exchange ₹2,000 notes by the public up to a limit of ₹20,000 at a time without seeking any demand will be given. slide.
“Further, no identity proof is required to be produced by the tenderer at the time of exchange,” the May 20 communication said.