“RBI has not yet clarified what is the benefit to the RBI or the national economy after removing the ₹2,000 note from circulation, but the hardships for the citizen of the country are very well known and observed during the demonetization of the ₹500 and ₹1,000 denomination in 2016 and the withdrawal of ₹2,000 is not much different from the previous demonetization,” the plea reads.File | Photo credit: Reuters

On July 3, the Delhi High Court dismissed a Public Interest Litigation (PIL) challenging the decision of the Reserve Bank of India (RBI) to withdraw banknotes with a face value of ₹2,000 from circulation.

A bench consisting of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad rejected the plea filed by Rajneesh Bhaskar Gupta.

This is the second petition filed in the High Court in connection with the RBI’s decision to withdraw the banknotes with a face value of ₹2,000 from circulation.

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In May, the High Court rejected a previous PIL asking the government not to allow the exchange of ₹2,000 notes, without obtaining a requisition slip or proof of identity.

“This decision by the government is purely a political decision and the courts should not sit as an appellate authority on the decision taken by the government,” the High Court had said.

Mr. Gupta, in his argument, argued that RBI has no independent power to order the non-issuance or discontinuation of banknotes of any denomination and that such power is conferred only on the Center under of Section 24(2) of the RBI Act 1934.

The petition stated that the RBI notification did not give any reason other than the “clean notes policy” for the “large arbitrary decision to withdraw the Rs 2,000 banknotes from circulation without analysis of the expected problems of the general public”. .

“RBI has not yet clarified what is the benefit to the RBI or the national economy after removing the ₹2,000 note from circulation, but the hardships for the citizen of the country are very well known and observed during the demonetization of the denomination of ₹500 and ₹1,000 in 2016 and the withdrawal of ₹2,000 is not much different from the previous demonetization,” the plea reads.

The plea was opposed by RBI who said it was only removing ₹2,000 notes from circulation which was an “exercise in currency management” and a matter of economic policy.