In a recent development, the Delhi High Court has dismissed a Public Interest Litigation (PIL) challenging the notifications issued by the Reserve Bank of India (RBI) and State Bank of India (SBI) regarding the exchange of Rs 2,000 banknotes without the need for a requisition slip and identity proof. The PIL was filed by Ashwini Kumaar Upadhyay, a BJP leader and advocate.
Upadhyay’s plea argued that a significant amount of currency, including Rs 2,000 banknotes, had either been hoarded by various individuals or was in possession of separatists, terrorists, Maoists, drug smugglers, mining mafias, and corrupt individuals. The petitioner contended that the notifications were arbitrary, irrational, and violated Article 14 of the Indian Constitution, which guarantees equality before the law.
However, the division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad rejected the PIL, upholding the validity of the RBI and SBI notifications. The court did not find any merit in the argument put forth by Upadhyay and deemed the notifications as a lawful exercise carried out by the central bank.
The RBI, in its defense, clarified that the notification was not a form of demonetization but rather a statutory measure. The central bank had advised all banks to discontinue the issuance of Rs 2,000 denomination banknotes, while emphasizing that these banknotes would still retain their legal tender status.
The introduction of Rs 2,000 banknotes in November 2016 was aimed at swiftly meeting the currency requirements of the economy following the withdrawal of the legal tender status of Rs 500 and Rs 1,000 banknotes at the time. Once an adequate supply of banknotes in other denominations was achieved, the printing of Rs 2,000 banknotes ceased in 2018-19. The recent decision to withdraw these banknotes from circulation aligns with the Reserve Bank of India’s “Clean Note Policy.”
The Delhi High Court’s dismissal of the PIL reaffirms the validity of the RBI and SBI notifications, enabling the exchange of Rs 2,000 banknotes without the need for requisition slips and identity proofs. It establishes that the notifications are in line with the statutory authority of the central bank and upholds the objective of maintaining a clean and efficient currency system.
As a result of this ruling, individuals possessing Rs 2,000 banknotes will be able to exchange them without additional documentation, facilitating ease of transactions and promoting the circulation of legal tender in the economy.