The main legal point established in the judgment is that in matters of economic policy, the court's power of judicial review is limited, and interference is only justified if the policy decision is patently arbitrary, discriminatory, or mala fide.

Hemant Gupta, J.

1. This order shall dispose of L.P.A. No.1274 of 2015 and L.P.A. No.1516 of 2016 preferred by the writ applicants.

2. L.P.A. No.1516 of 2016 is directed against an order passed by the learned Single Judge on 8th of August, 2013, whereas L.P.A. No.1274 of 2015 is directed against an order dated 29th April, 2015, whereby a petition for review of the order dated 8th August, 2013 remained unsuccessful.

3. The brief facts, out of which the present appeals arise, are that the Reserve Bank of India on 25th January, 2006 issued a Circular to all Scheduled Commercial Banks for use of Business Facilitators and Correspondents for extension of Banking Services. The objective of the Scheme; the eligible entities and scope of activities contained therein are reproduced below:-

"Financial inclusion by Extension of Banking Services-Use of Business Facilitators and Correspondents : With the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, it has been decided in public interest to enable banks to use the services of Non- Governmental Organisations/ Self Help Groups (NGOs/ SHGs), Micro Finance Institutions (MFIs) and other Civil Society Organisations (CSOs) as intermediaries in providing financial and banking services through the use of Business Facilitator and Correspondent models as indicated below.

2. Business Facilitator Model: Eligible Entities and Scope of Activities

2.1 Under the Business Facilitator model, banks may use intermediaries, such as, NGOs/ Farmers' Clubs, cooperatives, community based organisations, IT enabled rural outlets of corporate entities, Post Offices, insurance agents, well functioning Panchayats, Village Knowledge Centres, Agri Clinics/ Agri Business Centers, Krishi Vigyan Kendras and KVIC/ KVIB units, depending on the comfort level of the bank, for providing facilitation services. Such services may include (i) identification of borrowers and fitment of activities; (ii) collection and preliminary processing of loan applications including verification of primary information/data; (iii) creating awareness about savings and other products and education and advice on managing money and debt counselling; (iv) processing and submission of applications to banks; (v) promotion and nurturing Self Help Groups/ Joint Liability Groups; (vi) post-sanction monitoring; (vii) monitoring and handholding of Self Help Groups/ Joint Liability Groups/ Credit Groups/ others; and (viii) follow-up for recovery.

4. Payment of commission/ fees for engagement of Business Facilitators/ Correspondents

Banks may pay reasonable commission/fee to the Business Facilitators/ Correspondents, the rate and quantum of which may be reviewed periodically. RBI Master Circular DBOD.Dir.5/13. 07.00/2005-06 dated July 1, 2005 may be treated as modified to that extent. The agreement with the Business Facilitators/ Correspondents should specifically prohibit them from charging any fee to the customers directly for services rendered by them on behalf of the bank.

5. Other Terms and Conditions for Engagement of Business Facilitators and Correspondents

5.1 As the engagement of intermediaries as Business Facilitators / Correspondents involves significant reputational, legal and operational risks, due consideration should be given by banks to those risks. They should also endeavour to adopt technology-based solutions for managing the risk, besides increasing the outreach in a cost effective manner. In formulating their schemes, banks may be guided by the recommendations made in the Khan Group Report as also the draft outsourcing guidelines released by Reserve Bank of India on December 6, 2005 (available on RBI website: www.rbi.org.in).

5.2 The arrangements with the Business Correspondents shall specify :

(a) suitable limits on cash holding by intermediaries as also limits on individual customer payments and receipts,

(b) the requirement that the transactions are accounted for and reflected in the bank'