New Delhi: A petition was filed in Delhi High Court against the Reserve Bank of India (RBI) decision to demonetise Rs 2000 notes. In an appeal, advocate Rajnish Gupta sought dismissal of RBI’s May 19 notification.
The petition said that the bank would pay Rs 500 more to persons who are coming for note exchange.
Last week, the Reserve Bank of India announced the withdrawal of Rs 2000 note (₹ 2000 Note). With this, the process of exchanging these notes has started in all banks from today i.e. Tuesday. However, the deadline to exchange Rs 2000 notes is till September 30, 2023. These notes were issued in November 2016.
Top argument given by the petitioner
– The RBI has no independent power under the Reserve Bank of India Act, 1934 to demonetise notes of any denomination.
– The power to discontinue or issue notes rests only with the Central Government under Section 24(2) of the RBI Act, 1934.
– The RBI notification dated May 19, 2023 does not say that the Central Government has decided to withdraw Rs 2000 notes under Section 24(2) of the RBI Act, 1934.
– The Central Government has not yet issued any notification regarding the withdrawal of the Rs 2000 denomination from circulation.
– The RBI governor argues that the estimated life span of 2000 notes is about 4-5 years, so other notes should also have the same life span.
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