HC reserves order on plea against notification for Rs 2000 notes exchange

RBI tells Delhi High Court withdrawal of Rs 2000 notes is not demonetisation but statutory exercise

The Delhi High Court reserved on Tuesday its order on a plea challenging a part of Reserve Bank of India (RBI) and State Bank of India (SBI) notification for exchanging Rs 2000 currency notes without identity proof.

Parag Tripathi, a senior advocate representing RBI, said that the notification was a statutory exercise and not demonetisation.

Ashwini Upadhyay, a lawyer and BJP leader, said he filed the plea to challenge the provision allowing exchange of notes without identity proof. He

"Petitioner is filing this PIL under Article 226 seeking a declaration that RBI Notification dated 19.05.2023 (Annexure-1) and SBI Notification dated 20.05.2023 (Annexure-2), which permits exchange of Rs. 2000 banknotes without obtaining any requisition slip and identity proof, is arbitrary, irrational and offends Articles 14, hence, inoperative.

It is necessary to state that RBI admits in para-2 that total value of Rs 2000 banknotes in circulation have (sic) declined from Rs 6.73 lakh crore to 3.62 lakh crore, which 3.11 lakh crore has been reached either in individual’s locker otherwise has been hoarded by the separatists, terrorists, maoists, drug smugglers, mining mafias & corrupt people," said Upadhyay’s petition.

The SBI has told its branches that no form and no identity proof is required to exchange Rs 2,000 notes.

"The facility of Rs exchange of Rs 2,000 to all members of the public upto a limit of Rs 20,000 at a time will be allowed without obtaining any requisition slip," SBI said in a circular on May 20.

"Further, no identity proof is required to be submitted by the tenderer at the time of exchange," the circular said.