Demonetisation issue reaches High Court

The issue of restriction on withdrawal of cash in the wake of demonetisation reached the high court on Wednesday.

A group of co-operative societies from Udupi district moved the court against
fixation of withdrawal limit by the Reserve Bank of India (RBI).  

Justice Ashok B Hinchigeri ordered issuance of notice to the Union government, RBI and South Canara District Central Co-operative Bank. The bench has posted further hearing to Thursday. The petition was filed by Badagubettu Credit Co-operative Society and nine other societies.

The petition has challenged clause 6 of the notification on demonetisation, fixing the withdrawal ceiling of Rs 24,000 per week from savings accounts and Rs 50,000 from current accounts.

 The counsel for the petitioners requested for a direction to the government and the RBI to allow need-based withdrawal of cash.

‘Violation of Constitution’
The societies contended that restricting the account holders to withdraw cash violates article 43-B and article 243-ZO of the Constitution.