Govt tells SC: Demonetisation undertaken to increase digital payments
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New Delhi: The Reserve Bank of India (RBI) and the finance ministry are constantly monitoring the position regarding the distribution of all denominations of bank notes, the central government told the Supreme Court on Thursday.
In an affidavit, the Centre held that there was a need to maintain utmost secrecy in implementing demonetisation. Calling it a move towards Digital India, Centre submitted that the step was undertaken for increasing digital payments in the economy through credit and debit cards, Internet banking, e-wallets and mobile apps.
It further said that the withdrawal limit across ATMs and banks was being increased from time to time to lessen the inconvenience being faced by the public.
Attorney general (AG) Mukul Rohatgi had on Wednesday told the court that the situation following the 8 November demonetisation, which led to a cash crunch and long queues forming outside banks and ATM kiosks, was improving and the Centre was monitoring the situation on a daily basis.
The court had made it clear that while it will not interfere with the government’s economic policy, inconvenience caused to people will be monitored by the court. At least four public interest litigation cases have been filed before the apex court.
The demonetisation has also been challenged across various courts in the country. A plea seeking for all these petitions to be heard either by the apex court or any other court has been moved but no stay has been granted so far.
The Supreme court will hear the main petition challenging the RBI notification scrapping Rs500 and Rs1,000 bank notes on Friday.