Delhi HC Declines To Formulate Uniform Banking Code For Foreign Exchange Transactions

The Delhi High Court stated it lacks the means and expertise to develop a uniform banking code for foreign exchange transactions. The court directed that the petition for a banking code be treated as a representation to the Ministry of Finance. The ministry will seek input from the Ministry of Home Affairs and the Reserve Bank of India.

Court’s Ruling on the PIL

Chief Justice Manmohan and Justice Tushar Rao Gedela led the bench. They emphasized the court’s inability to formulate a banking code. The Ministry of Finance must make a decision quickly, incorporating insights from other ministries.

The court dismissed a public interest litigation (PIL) filed by advocate Ashwini Kumar Upadhyay. The petition pointed out significant loopholes in the foreign fund transfer system. These loopholes could benefit separatists, Naxalites, and terrorists.

Issues with Foreign Fund Transfers

The petitioner argued that methods like RTGS, NEFT, and IMPS allow harmful foreign funds into Indian banks. He claimed these funds threaten India’s foreign exchange reserves and finance radical activities.

Upadhyay criticized the uniform immigration rules for foreigners, regardless of travel class or country of origin. He stressed that this inconsistency poses risks to national security.

Also Read: PM Modi Meets Tata Sons, Taiwan’s PSMC Leaders As They Build Rs 91,000 Cr Chip Facility In India