The Reserve Bank of India (RBI) on Tuesday told the Delhi High Court that the withdrawal of Rs 2000 notes is not demonetisation but a statutory exercise. RBI said that Rs 2,000 note was introduced for operational convenience. The court was hearing a plea by advocate Ashwini Kumar Upadhyay, who said that the notification by RBI and SBI to replace Rs 2,000 bank notes without proof is arbitrary and against laws meant to prevent corruption.
A bench of Chief Justice Satish Chandra Sharma and Justice Subramaniam Prasad said it would pass appropriate orders on the lawyer’s PIL. “We will look into it. We will pass appropriate orders,” the court said. Upadhyay clarified that he was not challenging the decision to withdraw the Rs 2,000 bank note, but his aim was to ban the exchange of notes without any slip or identity proof.
He insisted that Rs 2000 bank notes should be allowed to be exchanged through bank account deposits. He said that why ID proof is not being asked to change the notes? He eats the Jan Dhan of every poor. BPL persons are also linked with bank accounts. Upadhyay claimed that only “Atiq Ahmed’s henchmen” such as mafia, gangsters and Naxalites would benefit from the current system.
Senior advocate Parag P Tripathi, appearing for RBI, emphasized that the court cannot interfere in such matters and it has been decided to allow replacement of Rs 2000 note for operational convenience. “It is not demonetisation. The Rs 2,000 bank note was not commonly used. Notes of other denominations are in circulation in sufficient quantities,” he said.
“This is a statutory exercise. None of the claims made by the petitioner pertain to violation of constitutional issues,” he added. The court has reserved the verdict after hearing both the sides.