PIL in Delhi HC challenges RBI decision to withdraw ₹2000 denomination banknotes

A Public Interest Litigation (PIL) has been filed in Delhi High Court seeking a direction to quash the Reserve Bank of India (RBI) Notification dated May 19, 2023, by which the RBI has decided to withdraw the Rs 2000 denomination banknotes from circulation under the clean note policy or otherwise.

A PIL has been filed in Delhi HC seeking a direction to quash the RBI Notification dated May 19, 2023, by which the RBI has decided to withdraw the Rs 2000 denomination banknotes from circulation under the clean note policy or otherwise.

Request for direction to the Reserve Bank of India and the Ministry of Finance, Government of India to issue a notification/circular for the general public clarifying the estimated life span of each denomination of banknote currently in circulation, as well as the estimated time/year of withdrawal from circulation in the future by the RBI under the Clean Note Policy or otherwise.

Petitioner Rajneesh Bhaskar Gupta argued in a plea that the RBI lacks independent authority under the Reserve Bank of India Act, 1934 to direct the non-issuance or discontinuance of the issuance of bank notes of any denominational value, and that this authority is only vested in the Central Government under section 24 (2) of the RBI Act, 1934.

The plea further asserted that neither the impugned notification/circular dated May 19, 2023, nor any other notification issued by the Central Government so far regarding withdrawal of the denomination of Rs 2000 from circulation speaks that the Central Government has taken the decision to withdraw the denomination of Rs 2000 from circulation under section 24 (2) of the RBI Act, 1934.

The plea further submitted that as per the reasoning given by the present RBI Governor, if the estimated life span of denomination of Rs.2000 is about 4-5 years then all other banknotes like Rs 500, Rs 200, Rs 100, Rs 50, Rs 20, Rs 10, Rs 5 etc. printed in the same year of banknote of Rs 2000 must have a same estimated life span and are presumed to be withdrawn under the same Clean Note Policy of RBI at any time without considering the consequences/hardship of the same upon the public at large.

“The small vendor/shopkeeper stopped taking Rs 2000 banknotes after the RBI Notification/circular in question and not considering that the legal validity of the said note remains valid till September 30, 2023, which creates an unprecedented situation for the public at large having such notes and the only remedy is left to move to the bank in his/her official working hours for depositing/exchanging the said Rs 2000 banknote,” stated the petition.”

A thousand crore have been spent from the public exchequer i.e. taxpayer money, as a printing cost for printing good quality with better safety measures denomination of Rs 2000 in the tune of Rs 6.7 lakh crore after demonetization in the year 2016, which will be wasted, if such banknotes are withdrawn from the circulation unnecessary without any valid scientific reasons in the interest of the economy of the country,” read the plea.

On Tuesday Delhi High Court kept the order reserved on another Public Interest Litigation stated that that the decision of RBI, SBI and other banks in regard to exchanges of 2000 Rs notes without any identity proof is arbitrary.

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