'Unjust, arbitrary': New PIL in Delhi HC lambasts RBI's decision to withdraw Rs 2,000 notes

A second public interest litigation (PIL) has been filed in the Delhi High Court challenging the Reserve Bank of India’s (RBI) decision to withdraw Rs 2,000 notes from circulation. The PIL filed declares the decision to withdraw the notes as “unjust, arbitrary, and against the public policy”.

The PIL, filed by advocate Rajneesh Bhaskar Gupta, points towards the Reserve Bank of India Act, 1934, and states that the RBI has no independent power to direct the non-issue or discontinuance of issue of bank notes of any denominational values and the power to do so lies with the central government. 

The PIL further reads that no other reason except the ‘Clean Note Policy’ has been given by the RBI as the reason for such a “big arbitrary decision”. It points towards the flaw in the implementation of the policy, stating that no new notes would be replacing the discontinued note. 

“As per the provision of the clean note policy of RBI, damaged, counterfeit, or soiled banknote of any denomination is withdrawn from circulation and newly printed banknotes are circulated in the marked but it is not happening in the present case, only denomination of Rs 2000 is being withdrawn within a specific date/deadline and no new similar banknote is given by the RBI in circulation,” Gupta said in the PIL.

Earlier, BJP leader Ashwini Upadhyay had filed a PIL against the RBI, challenging the decision to permit the exchange of Rs 2,000 notes without any identity proof. Per the PIL, the decision is “arbitrary, irrational and offends article 14”. 

Following the notification of the withdrawal of the notes from RBI, the State Bank of India (SBI) stated that no form or requisition slip would be required to exchange the bank notes. 

Upadhyay also asked for the money to be deposited in the accounts of the person depositing the money, stating that doing so would help tackle the issue of black money and disproportionate assets. 

On May 19, the RBI announced that Rs 2,000 notes would be withdrawn from circulation, giving the people time till September 30 to deposit or exchange the notes. The notes would be allowed to continue as legal tender, RBI Governor Shaktikanta Das said.