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Business News/ News / India/  Delhi HC dismisses PIL challenging RBI, SBI for allowing 2,000 note exchange without ID proof
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Delhi HC dismisses PIL challenging RBI, SBI for allowing ₹2,000 note exchange without ID proof

BJP leader and Advocate Ashwini Kumar Upadhyay moved the plea and sought direction to the RBI and SBI to ensure that ₹2,000 banknotes are deposited in respective bank accounts only so that no one could deposit the money in others' bank accounts.

Delhi HC dismisses PIL challenging RBI, SBI for allowing ₹2,000 note exchange without ID proof. Premium
Delhi HC dismisses PIL challenging RBI, SBI for allowing 2,000 note exchange without ID proof.

Delhi High Court on Monday dismissed PIL challenging the Reserve Bank of India (RBI) and State Bank of India (SBI) notifications, which permits the exchange of 2000 banknotes without obtaining any requisition slip and identity proof.

The plea had called the decision arbitrary, and irrational and offends Article 14 of the Constitution of India, hence, inoperative.

BJP leader and Advocate Ashwini Kumar Upadhyay moved the plea and sought direction to the RBI and SBI to ensure that 2,000 banknotes are deposited in respective bank accounts only so that no one could deposit the money in others' bank accounts and people having black money and disproportionate assets could be identified easily.

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

The petition highlighted that cash transaction in high value currency is the main source of corruption and is 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 2000 banknotes are deposited in respective bank accounts only.

"Recently, it was announced by the Centre that every family should have Aadhaar card and bank account. Therefore, why RBI is permitting to exchange 2000 banknotes without obtaining identity proof. It is also necessary to state that 80 crore BPL families receive free grains. It means 80 crore Indians rarely use 2,000 banknotes. Therefore, petitioner also seeks direction to RBI and SBI to take steps to ensure that 2000 banknotes are deposited in bank account only," the plea stated.

Depositing 2000 currency notes in bank accounts would ensure that people having black money and disproportionate assets could be identified easily, the plea said.

SBI in its guidelines issued to all its branches said that no form or identity proof should be asked for from customers to exchange 2,000 currency notes, even as it underlined the one-time limit of 20,000 for depositing or exchanging the banknote. Other banks, including private sector banks and other public sector banks, could ask customers of other banks to submit identification proof, Mint reported.

The RBI’s notification stated that people have been given time from May 23 to September 30 to exchange or deposit 2,000 notes so that these can be withdrawn from circulation. These notes will continue to be legal tender even after the September 30 deadline, and can be used for transactions, the central bank had clarified.

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Published: 29 May 2023, 10:52 AM IST
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