Delhi High Court Directs Finance Ministry on Uniform Banking Code for Forex Transactions

The Delhi High Court has directed the Ministry of Finance to treat a petition seeking a uniform banking code for foreign exchange transactions as a representation. This follows a PIL by Ashwini Kumar Upadhyay highlighting loopholes that facilitate misuse of foreign funds by separatists and other extremists.

The Delhi High Court on Thursday declared that it lacks the resources and expertise to develop a uniform banking code aimed at regulating foreign exchange transactions to curb black money and benami transactions.

The court instructed that a petition calling for the implementation of such a code should be treated as a representation by the Ministry of Finance, which should also garner input from the Ministry of Home Affairs and the Reserve Bank of India.

The court was addressing a PIL filed by advocate Ashwini Kumar Upadhyay, seeking reforms to prevent foreign funds from being misused by separatists, extremists, and other destabilizing elements.