[NEWS18] "Serious Issue": Delhi High Court issues notice to RBI in plea seeking Implementation Of Uniform Banking Code

The Delhi High Court on Monday issued notice to the Reserve Bank of India in a plea seeking direction to the Central Government to implement a Uniform Banking Code for Foreign Exchange Transaction in order to control black money generation and Benami transactions. The plea has alleged that the money is being sent and received in a camouflaged way, and foreign money is being transferred to accounts of Separatists, Fundamentalists, Naxals, Maoists, Terrorists, Traitors, Conversion Mafias, and Radical Organizations like SIMI, PFI, etc.

A bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad said, "If it's happening then it is very serious."

The plea filed by Advocate Ashwini Kumar Upadhyay states that the "immigration rules for Visa are same whether a foreigner comes in Business Class or Economy Class, uses Air India or British Airways and comes from USA or Uganda. Likewise, deposit details in Indian banks, including foreign bank branches for Foreign Exchange Transaction must be in the same format whether it is export payment in a current account or salary, in a savings account or donation, in a charity's current account or service charges payable in YouTuber's accounts."

Upadhyay submitted that the Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS), and National Electronic Fund Transfer (NEFT) money transfer methods are being used for international transactions. The money sent through these methods cannot be identified if this money is coming from some other country.

One, Nawal Kishore Sharma connected from Australia assisting Upadhya submitted that people are sending money to Separatists, Fundamentalists, Naxals, Maoists, Terrorists, Traitors, Conversion Mafias & Radical Organizations like SIMI, PFI.

Upadhyay submitted before the bench that "if I go to Cannaught Place today, Palika Bazar and give Rs 1 Crore to them, they'll keep Rs 20 Lakh and rest of the money will be sent to Australia and my Rs 80 Lakh will keep on circulating in India."

Whereas RBI will only see if it is RTGS or IMT (International Money Transaction), if it is IMT then it is international otherwise it is a Domestic transaction. So, they'll send through RTGS which will be identified as a Domestic transaction, Upadhyay added.

Sharma submitted that like the recent riots that happened in Delhi, similar other riots can happen within an hour with this money, which is very dangerous.

The Court noted that the matter requires a detailed hearing and listed the matter for further hearing on March 20, 2023.

The plea has sought "direction to ensure that Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT) and Instant Money Payment System (IMPS) shall not be used for depositing foreign money in Indian Banks as it is not only harming national interests of Foreign Exchange Reserve of India but also being used to provide money to Separatists, Fundamentalists, Naxals, Maoists, Terrorists, Traitors, Conversion Mafias & Radical Organizations like SIMI, PFI."

The plea, therefore, prays for the direction that Foreign Exchange Transaction through Indian banks including foreign bank branches in India viz. ICICI, HDFC, HSBC, etc. must have the following information:

i. Name and Mobile Number of Depositor.

ii. International Money Transfer (IMT) and not RTGS/NEFT /IMPS.

iii. Name of Currency e.g., AUD (Australian Dollars), USD (US Dollars), CNH (Chinese Yuan), GBP (Great British Pounds), EUR (Euro), etc.

iv. Exact Amount of foreign currency up to two decimal places.

v. Conversion rate up to three decimal places e.g., the USD conversion rate is Rs. 73.570 and AUD conversion rate is Rs. 55.108

Cause Title: Ashwini Kumar Upadhyay Vs. Union of India & Ors.