The Reserve Bank of India (RBI) on Monday submitted before the Delhi High Court that its decision to withdraw Rs 2,000 notes was a “currency management exercise” and not demonetisation. While hearing a petition challenging the withdrawal of Rs 2,000 notes, the RBI’s counsel Abhishek M. Singhvi said that the withdrawal of Rs 2,000 notes was within the regulatory powers of the central bank.
Singhvi argued that the subsequent introduction of new Rs 2,000 notes with improved security features was a “currency management exercise” and not demonetisation. He also said that the decision was taken with a view to making notes more secure and meeting the requirements of additional currency in circulation in the market.
The RBI’s counsel further submitted that the decision to withdraw the notes and introduce new notes was taken within the central bank’s jurisdiction and powers. The petitioners had alleged that the RBI’s decision to withdraw Rs 2,000 notes did not follow due process and violated the RBI Act, as well as the law of the land.