RBI: Withdrawal of Rs 2000 note is ‘currency management’, not demonetisation

Opposing a plea in Delhi HC challenging the RBI’s May 19 notification to withdraw Rs 2,000 currency note from circulation, the central bank said the decision is not demonetisation but a part of “currency management system”.

The submission was made by senior advocate Parag Tripathi who stated before a division bench of Chief Justice Satish Chandra Sharma and Justice Subramanium Prasad that currently Rs. 2000 notes were not being used really adding that, adding that “this issue of alleged demonetisation was also subject matter of an earlier petition the verdict on which has been reserved by the HC”. He also submitted that this was a matter of “economic policy”.

The RBI further said that this exercise was only for the exchange of notes and that after September 30 (time granted for exchanging the notes), a decision may be taken after seeing a result of the exchange.