PIL challenges RBI's decision to withdraw Rs 2000 banknotes, seeks court intervention
New Delhi, May 24: A Public Interest Litigation (PIL) has been filed in the Delhi High Court to challenge the Reserve Bank of India's (RBI) decision to withdraw the Rs 2000 denomination banknotes from circulation.
The PIL seeks a direction to quash the RBI's notification dated May 19, 2023, which announced the withdrawal of these banknotes under the clean note policy or otherwise.
The petitioner, Rajneesh Bhaskar Gupta, has requested the court to direct the RBI and the Ministry of Finance, Government of India, to issue a notification or circular clarifying the estimated lifespan of each denomination of banknote currently in circulation and the anticipated time or year of their future withdrawal from circulation, whether under the Clean Note Policy or otherwise.
Gupta's plea argues that the RBI lacks independent power under the Reserve Bank of India Act, 1934 to direct the non-issue or discontinuance of banknotes of any denomination. According to the petitioner, this power is vested solely in the Central Government under section 24 (2) of the RBI Act, 1934.
The plea highlights that the impugned notification/circular issued by the RBI on May 19, 2023, does not indicate that the Central Government, as per section 24 (2) of the RBI Act, 1934, has taken the decision to withdraw the Rs 2000 denomination from circulation. The petitioner argues that no such notification has been issued by the Central Government thus far regarding the withdrawal of the Rs 2000 denomination.
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Furthermore, the plea states that if the estimated lifespan of the Rs 2000 banknote is around 4-5 years, then all other banknotes of different denominations, such as Rs 500, Rs 200, Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, printed in the same year as the Rs 2000 banknote, should have the same estimated lifespan. Thus, they should be presumed to be withdrawn under the same Clean Note Policy of the RBI at any time, without considering the potential consequences and hardships faced by the public.
The petition highlights the dilemma faced by the public, with small vendors and shopkeepers refusing to accept Rs 2000 banknotes despite their legal validity until September 30, 2023. The petitioner argues that this creates an unprecedented situation for the public, as the only recourse left is to visit the bank during official working hours to deposit or exchange these banknotes.
The plea also emphasises that a significant amount of taxpayer money, around Rs 6.7 lakh crore, has been spent on printing good-quality Rs 2000 banknotes with enhanced safety measures. The petitioner contends that withdrawing these banknotes from circulation without valid scientific reasons would result in the wastage of this substantial investment, adversely affecting the economy of the country.
In a separate PIL, the Delhi High Court reserved its order on the decision of the RBI, SBI, and other banks regarding the exchange of Rs 2000 notes without requiring any identity proof, deeming it arbitrary.
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- With inputs from agencies
