HC seeks RBI reply on uniform banking code for forex transactions
NEW DELHI: The Delhi high court on Monday sought the Reserve Bank of India (RBI)’S stand on a plea seeking implementation of a uniform banking code for foreign exchange transactions to rein in black money and benami transactions.
The matter requires a detailed hearing, a bench of chief justice Satish Chandra Sharma and justice Subramonium Prasad said, issuing notice to the central bank on the plea by lawyer and Bharatiya Janata Party spokesperson Ashwini Upadhyay raising loopholes in the system in relation to transfer of foreign funds, which could be used by separatists, Naxals, Maoists, fundamentalists, and terrorists.
During the hearing, additional solicitor general Chetan Sharma told the court that it is a serious matter and the union government would file its response on the petition. The high court granted six more weeks to the Centre to file a reply to the petition and listed the matter for further hearing on March 20.
The petition has sought direction to ensure that Real Time Gross Settlement (RTGS),
National Electronic Funds Transfer (NEFT) and Instant Money Payment System (IMPS) are not used to deposit foreign money in Indian banks.
The plea has also sought direction that foreign exchange transactions through Indian banks and foreign bank branches in India must have information like the name and mobile number of the depositor, International Money Transfer (IMT) and not RTGS/NEFT/ IMPS, and name of currency.
The petitioner has said it is not only harming the foreign exchange reserve of India, but also being used to provide money to separatists, fundamentalists, Naxals, Maoists, terrorists, traitors, conversion mafias and radical organisations like the SIMI and PFI.
“Likewise, 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 a Youtuber’s accounts. The format should be uniform whether it is converted by Western Union or National Bank or an India-based foreign bank,” the plea has said.