PVR INOX refuses cash payment? Lawyer sends legal notice, expert explains what law says
Expert explained that private businesses can generally determine the terms on which they offer services, subject to applicable laws and regulatory requirements.
A lawyer from Ahmedabad has sent a legal notice to PVR INOX Ltd questioning the multiplex chain's refusal to accept cash payments at its cinema hall in Palladium Mall. The lawyer, Utkarsh Dave, visited the multiplex on September 13 and found staff members refusing to accept cash for his ticket and food, forcing him to pay through UPI.
Dave's notice refers to Section 26(1) of the Reserve Bank of India Act, 1934, which recognizes RBI-issued banknotes as legal tender. He argued that the multiplex's blanket refusal to accept cash raises questions about transparency and customer information. The notice also invokes provisions of the Consumer Protection Act, asking the company to clarify if it has formally adopted a cashless-only policy.
Dave wants to know if the policy is prominently displayed and communicated to customers in advance. He has also requested copies of any written instructions directing employees not to accept cash payments. Legal expert Dinkar Sharma explained that while RBI-issued banknotes are legal tender, private businesses can generally determine their own terms for offering goods and services, subject to applicable laws and regulations.
Sharma stated that businesses may adopt cashless policies, as long as they clearly communicate those restrictions to customers in advance. The lawyer's notice further asks the multiplex to explain arrangements for customers who do not have smartphones, UPI access, internet connectivity, or other digital payment facilities.
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