The counsel appearing for the Reserve Bank of India (RBI) said that the central bank is a regulator and that nothing specific had been pointed out in the plea as to what the RBI is supposed to do. The counsel said that “any international transfer cannot be RTGS”.
While hearing a plea seeking direction to Centre for implementation of uniform banking code for foreign exchange transaction, the Delhi High Court Monday sought an affidavit containing instances where foreign transactions were camouflaged as domestic ones.
A division bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula asked the petitioner Ashwini Kumar Upadhyay to file an affidavit giving examples or illustrations in respect of foreign transfers which are undetected as Real Time Gross Settlement (RTGS), National Electronic Funds Transfer (NEFT) and Instant Money Payment System (IMPS). The matter is next listed in December.
You have exhausted your
monthly limit of free stories.
To continue reading,
simply register or sign in
Continue reading this and other premium stories with an Express subscription.
This premium article is free for now.
Register to read more free stories and access offers from partners.
Continue reading this and other premium stories with an Express subscription.
This content is exclusive for our subscribers.
Subscribe now to get unlimited access to The Indian Express exclusive and premium stories.
The counsel appearing for the Reserve Bank of India (RBI) said that the central bank is a regulator and that nothing specific had been pointed out in the plea as to what the RBI is supposed to do. The counsel said that “any international transfer cannot be RTGS”.
The RBI’s response states that foreign transactions are covered under Foreign Exchange Management Act, and NEFT, RTGS and IMPS are domestic payment systems and scheduled banks within India have access to NEFT and RTGS.
Most Read
It further states that furnishing of PAN is mandated in the liberalised remittance scheme which permits resident individuals in India to send money abroad for permitted capital and current account transactions.
The plea seeks a direction to ensure that RTGS, NEFT and IMPS should not be used for depositing foreign money in Indian banks, claiming that it is not only harming the interests of 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 SIMI, PFI.
The plea also seeks that the Centre must take steps to ensure that foreign exchange transactions are not carried out without giving “Full Name, PAN, Mobile and AADHAAR details of depositor & drawer” which can be used to track black money routes.
© The Indian Express Pvt Ltd
First published on: 17-10-2023 at 01:46 IST
