Delhi High Court dismisses PIL against exchange of Rs 2,000 banknotes without ID proof

The RBI has advised members of the public to deposit Rs 2,000 banknotes into their bank accounts or exchange them for banknotes of other denominations at any bank branch.

The Delhi High Court on May 29 dismissed a Public Interest Litigation (PIL) against permission to exchange Rs 2,000 banknotes without obtaining any requisition slip and identity proof.

On May 23, lawyer Ashwini Upadhyay, who filed the plea, appeared in person and argued that the notifications by the RBI and SBI in this regard are arbitrary, irrational, and offend Articles 14 of the Constitution of India. He took the court through his plea.

Appearing for the RBI, senior advocate Parag Tripathi urged the bench to dismiss the plea on the ground that the constitution bench of SC has time and again reiterated that they cannot interfere in the nation’s economic policies.

Tripathi further argued that withdrawing Rs. 2,000 notes is not demonetisation but a statutory exercise, hence it is not a public issue.

The bench, on hearing both the parties, dismissed Upadhyay's PIL.

Upadhyay's petition said that a large amount of the currency has reached either an individual's locker or has "been hoarded by the separatists, terrorists, Maoists, drug smugglers, mining mafias & corrupt people".

It also highlighted that cash transactions in high-value currency are the main sources of corruption and are used for illegal activities like terrorism, naxalism, separatism, radicalism, gambling, smuggling, money laundering, kidnapping, extortion, bribing, and dowry, etc. and the RBI and SBI should ensure that Rs 2,000 banknotes are deposited in respective bank accounts only.

Note withdrawal

On May 19, Reserve Bank of India (RBI) said it is withdrawing Rs 2,000 notes from circulation based on a review. However, the banknotes in Rs 2,000 denomination will continue to be legal tender, the RBI said in a release.

The RBI has advised members of the public to deposit Rs 2,000 banknotes into their bank accounts or exchange them for banknotes of other denominations at any bank branch.

"Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions," RBI said in a release.

The RBI further said in order to ensure operational convenience and to avoid disruption of regular activities of bank branches, the exchange of Rs 2,000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.