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Delhi HC dismisses PIL challenging RBI, SBI for allowing Rs 2,000 note exchange without ID proof

According to the appeal, a significant portion of the cash has either ended up in people's lockers or has "been hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafias, and corrupt people."

Delhi HC dismisses PIL challenging RBI, SBI for allowing Rs 2,000 note exchange without ID proof AJR
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First Published May 29, 2023, 11:44 AM IST

Delhi High Court on Monday (May 29) dismissed a Public Interest Litigation (PIL) challenging the Reserve Bank of India (RBI) and State Bank of India (SBI) notifications, which permits the exchange of Rs 2000 banknotes without obtaining any requisition slip and identity proof.

The plea had called the decision arbitrary, and irrational and offends Article 14 of the Constitution of India, hence, inoperative.

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The plea was moved by BJP leader and Advocate Ashwini Upadhyay and sought direction to the RBI and SBI to ensure that Rs 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.

According to the appeal, a significant portion of the cash has either ended up in people's lockers or has "been hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafias, and corrupt people."

The petition also stressed that the main source of corruption is cash transactions in high value currency, which are used for illegal activities like terrorism, naxalism, separatism, radicalism, gambling, smuggling, money laundering, kidnapping, extortion, bribery, and dowry, among others. The RBI and SBI should make sure that only notes valued at 2000 rupees are deposited in their respective bank accounts.

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"Recently, it was announced by the Centre that every family should have Aadhaar card and bank account. Therefore, why RBI is permitting to exchange Rs 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 Rs 2,000 banknotes. Therefore, petitioner also seeks direction to RBI and SBI to take steps to ensure that Rs 2000 banknotes are deposited in bank account only," the plea stated.

Depositing Rs 2000 currency notes in bank accounts would ensure that people having black money and disproportionate assets could be identified easily, the plea said.

In its guidelines issued to all its branches, the SBI said that no form or identity proof should be asked for from customers to exchange Rs 2,000 currency notes, even as it underlined the one-time limit of Rs 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.

According to the RBI's announcement, citizens have till September 30 to swap or deposit Rs 2,000 notes so that they can be taken out of circulation. The central bank has made it clear that these notes can still be utilised for transactions after the deadline of September 30.

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