Delhi HC reserves order on PIL challenging RBI, SBI permitting ₹2,000 note exchange without ID proof
The plea had called the decision arbitrary, and irrational and offends Article 14 of the Constitution of India, hence, inoperative.
PremiumDelhi High Court on 23 May reserved the order on PIL challenging Reserve Bank of India (RBI) and State Bank of India (SBI) notifications, which permits the exchange of ₹2000 currency notes without obtaining any requisition slip and identity proof.
Also Read: 2000 notes exchange: Day after RBI clarification, banks begin process nationwide
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.
Also Read: Why has RBI set September 30 deadline to exchange ₹2000 notes? Governor Shaktikanta Das explains
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.
According to RBI’s Friday notification, 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.
On Monday, RBI Governor also put to rest the speculation on the re-introduction of ₹1,000 notes into the system. He categorically denied the reintroduction of ₹1,000 notes, stressing that there are no immediate plans to bring back the ₹1,000 denomination.
Also Read: ₹2,000 note exchange process begins in banks today. Here's what PNB said
In November 2016, the ₹2,000 denomination banknote was introduced under Section 24(1) of the RBI Act, 1934 primarily with the objective to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all ₹500 and ₹1,000 banknotes in circulation at that time.
With the fulfilment of that objective and the availability of banknotes in other denominations in adequate quantities, the printing of ₹2,000 banknotes was stopped in 2018-19.
The printing of ₹2000 banknotes was stopped in 2018-19. About 89 percent of the ₹2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of 4-5 years.
The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak of March 31, 2018 (37.3% of Notes in Circulation) to ₹3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023.
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