Delhi HC seeks RBI stand on PIL seeking uniform banking code for foreign exchange transactions

New Delhi [India], December 5 (ANI): The Delhi High Court on Monday sought a response from the Reserve Bank of India (RBI) on a Public Interest Litigation (PIL) seeking direction to implement a Uniform Banking Code for foreign exchange transactions to control black money generation and Benami transactions.

The Bench of Justice Satish Chander Sharma and Justice Subramonium Prasad while issuing notice to RBI said the matters need a detailed hearing.

The Petitioner Ashwini Kumar Upadhyay stated that it is not only harming the national interests of the foreign exchange reserve of India but is also being used to provide money to separatists, fundamentalists, Naxals, Maoists, terrorists, traitors, conversion mafias and radical organizations.

The Predecessor Bench earlier issued notice to the Union of India asking the respondents to look into the matter seriouslyAdditional Solicitor General (ASG) Chetan Sharma appeared for Central Government earlier and stated that the issues raised by the petitioner require detailed consideration.

Petitioner Ashwini Kumar Upadhyay, practising lawyer and BJP leader, also sought direction to ensure that Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT) and Instant Money Payment System (IMPS) are not used for depositing foreign money in Indian banks.

The petitioner submitted that the immigration rules for a visa are the same whether a foreigner comes in business class or economy class, uses Air India or British Airways, and comes from USA or Uganda.

Likewise, Upadhyay said that the deposit details in Indian banks, including foreign bank branches for foreign exchange transactions, must be in the same format whether it is export payment in a current account or salary in a savings account or donation in charities current account or service charges payable in YouTuber's accounts. The format should be uniform whether it is converted by Western Union or National Bank or an India-based foreign bank.

"Foreign Inward Remittance Certificate (FIRC) must be issued and All International and Indian banks must send the link through SMS to get FIRC automatically in case Foreign Exchange is being deposited in the account as converted INR," the plea stated.

"Moreover, only a person or company should be permitted to send Indian Rupees from one bank account to another inside the territory of India through the RTGS, NEFT and IMPS and international banks should not be allowed to use these domestic banking transactions tools," it added.

The petitioner also sought direction that foreign exchange transactions through Indian banks including foreign bank branches in India viz. ICICI, HDFC, HSBC, etc must-have information like the name and mobile number of the depositor, International Money Transfer (IMT) and not RTGS/NEFT/IMPS, name of currency e.g., AUD (Australian Dollars), USD (US Dollars), CNH (Chinese Yuan), GBP (Great British Pounds), EUR (Euro), etc. (ANI)