The Reserve Bank of India (RBI) on Tuesday informed the Delhi High Court that the withdrawal of Rs 2,000 notes from circulation is a statutory exercise and not a demonetisation. This was in response to a plea challenging the RBI’s notification on the withdrawal of Rs 2,000 notes.
The matter was heard by a bench headed by Chief Justice Satish Chandra Sharma. Senior Advocate Parag P Tripathi, representing the RBI, said it is a statutory exercise and is not demonetisation.
The court has reserved its order.
The exchange of Rs 2,000 at banks has started today, May 23. SBI has said that there is no need for any ID or requisition slip for deposits up to Rs 20,000 at a time.
RBI Governor Shaktikanta Das on Monday said the purpose for which Rs 2,000 notes were started has been fulfilled and there are enough other notes in circulation. “The Rs 2,000 notes continue as legal tender and the September 30 deadline has been fixed so that people take the process seriously.”
He also said Rs 2,000 notes have completed their cycle and age, and their withdrawal is part of the currency management operation. The Rs 2,000 banknotes were introduced primarily to replenish the notes withdrawn following demonetisation in 2016, the RBI governor said.
The impact of the withdrawal on the economy will be “very very marginal”, he said, adding Rs 2,000 currency notes made up for just 10.8 per cent of the total currency in circulation. “Liquidity in the system is being monitored on a daily basis.”
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