NEW DELHI: The Delhi High Court on Monday said till the time Rs 2000 banknotes continue to be a legal tender, the RBI’s direction to banks not to issue Rs 2000 banknotes from its currency chests or request to the public for depositing them without any restriction is not a ‘decision of demonetisation.’
A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad observed the Reserve Bank of India (RBI) direction doesn’t mean that Rs 2000 currency notes will be demonetised from September 23 this year while rejecting a plea challenging the apex bank’s decision.
“The fact that the permission to exchange Rs 2000 notes is available only till 23.09.2023 doesn’t mean RBI has issued a direction that from 23.09.2023 Rs 2000 banknotes will be demonetised. The RBI, therefore, has not exceeded the powers conferred on it under the RBI Act or has not violated the Banking Regulation Act, 1949,” the order said.
The bench said the central bank has not taken any decision on the discontinuance of Rs 2000 notes and it was well within its power to issue the notification, which is only a part of the currency management system.
“.. It is not a decision to demonetise Rs 2000 banknotes and this circular is only a direction to the banks to desist from issuing Rs 2000 notes to their customers and to ensure that no withdrawal of Rs 2000 notes is allowed from the banks holding currency chests,” the high court said.