Center asked to see PIL seeking uniform banking code for forex transactions

The Delhi High Court on Tuesday asked the Center to seriously look into the issue raised in a Public Interest Litigation (PIL) seeking implementation of a Uniform Banking Code for foreign exchange transactions to control black money generation and benami transactions.

A bench of Acting Chief Justice Vipin Sanghi and Justice Navin Chawla issued notice to the Center through ministries of Home Affairs, Law and Justice and Finance, and asked them to respond to the petition.

Additional Solicitor General Chetan Sharma, representing the Centre, submitted that the petitioner has raised a serious issue which shall be looked into by the government.

The court, which listed the matter for further hearing on May 25, asked the Center to seriously look into the issue raised by the petitioner.

Petitioner and advocate Ashwini Kumar Upadhyay raised loop holes in the system in relation to transfer of foreign funds which could be used by separatists, Naxals, Maoists, fundamentalists, and terrorists.

During the hearing, the ASG said, He (petitioner) has raised a serious issue. We will consider it and get back. The issues are serious and important, they do require detailed consideration.

The petition 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 said it is not only harming 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 like the SIMI and PFI.

He submitted that 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, 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, the plea said.

“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.

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

The plea 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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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