The Delhi High Court has dismissed a public interest litigation (PIL) challenging the Reserve Bank of India’s (RBI) decision to withdraw Rs 2,000 denomination banknotes from circulation. The PIL, filed by Rajneesh Bhaskar Gupta, argued that the RBI does not have the authority to withdraw the banknotes and that only the central government can make such a decision.
The petitioner claimed that the RBI Act of 1934 grants the power of non-issue or discontinuance of banknotes to the Centre. However, the court rejected the plea, stating that the withdrawal of the banknotes was a currency management exercise and an economic policy matter. The decision follows a previous judgment regarding a different PIL that challenged notifications allowing the exchange of Rs 2,000 banknotes without requisition slip and identity proof.
The court upheld the government’s decision, emphasizing that it was not arbitrary or encouraging corruption. The RBI had announced the withdrawal of Rs 2,000 currency notes on May 19, allowing their exchange or deposit in bank accounts until September 30. The notes remain legal tender, and the RBI facilitated their exchange into other denominations to ensure operational convenience. The State Bank of India also confirmed the exchange facility without the need for requisition slips or identity proof.
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