HC dismisses case challenging RBI’s decision to permit exchange of Rs 2,000 bank notes without ID proof

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HC dismisses case challenging RBI’s decision to permit exchange of Rs 2,000 bank notes without ID proof

On Monday, the Delhi High Court dismissed a case challenging the RBI and State Bank of India SBI notification that permit exchange of Rs 2,000 banknotes without any ID proof.

A division bench of Justice Subramonium Prasad and Chief Justice Satish Chandra Sharma has rejected the motion, which has challenged the RBI's and SBI notification of enabling exchange of Rs 2,000 banknotes without requisition slip and identity proof.

A large amount of currency has reached an individual's locker or has been hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafias and corrupt people, according to a PTI report.

The motion alleged that the notifications were arbitrary, irrational and infringed on Article 14 of the Constitution.

As of now, the State Bank of India has informed all its branches that no form and no identity proof are required to exchange Rs 2000 notes, which the RBI has withdrew from circulation.

The facility of Rs. 2000 to all members of the public, up to a limit of Rs. 20,000 at a time, will be allowed without obtaining any requisition slip, the bank said in a circular dated May 20. At the time of exchange, no identity proof is required to be submitted by the tenderer. On May 19 the RBI announced the scrapping of Rs 2,000 notes from circulation, saying the aim of introducing the currency note had been met. The central bank said that 2,000 notes would remain a legal tender, but it encouraged people to exchange them by September 2023.