New Delhi: The Delhi High Court on Wednesday sought a reply from the Reserve Bank of India (RBI) on a petition filed against its notification on cash management.
Earlier in April, the RBI had amended engagement rules of service providers and sub-contractors in cash management logistics. RBI’s notification mandated a minimum worth of Rs. 100 crores for cash management logistic firms.
The petitioner firm, Shiva Industrial Security Agency Gujarat Ltd, was awarded work of cash management by Punjab National Bank in 2018.
However, to comply with the RBI notification, PNB terminated the company’s contract.
After the termination, the firm filed a plea against the RBI notification on cash management claiming that the policy is harsh, and mostly on small or medium scale companies.
Meanwhile, the Delhi High Court has directed PNB to not terminate the firm’s services until next hearing.
At present, the court has been adjourned until July. (ANI)