Supreme Court Modifies 1978 Labour Precedent; SBI Revises Basic Account Cash Withdrawal Fees

NEW DELHI — In a significant legal development, a nine-judge Supreme Court Bench has ruled that the broad definition of 'industry' established in the landmark 1978 Bangalore Water Supply case will not automatically apply to disputes under the Industrial Relations Code, 2020. The majority verdict stated that the new labour code must be interpreted independently. However, the Court clarified that the 1978 judgement will continue to govern pending cases under the older Industrial Disputes Act, 1947.

The 1978 ruling had historically extended labour protections to workers across sectors such as hospitals, educational institutions, and municipalities. Dissenting judges in the recent ruling argued that retaining the wider definition remains essential for safeguarding workers' rights within a liberalised economy.

In the banking sector, the State Bank of India (SBI) is extending cash withdrawal charges on Basic Savings Bank Deposit Accounts (BSBDA) starting October 1, 2026. This change brings branch-opened accounts under the same rules previously applied to accounts opened through customer service points. Customers will retain four free cash withdrawals per month across ATMs and branches. Any withdrawals exceeding this limit will attract a charge of ₹15 plus GST, while digital transactions will remain free and unrestricted. Industry observers note that the measure is aimed at boosting fee income and encouraging digital adoption.

In healthcare policy, private hospital chains—including Apollo Hospitals, Paras Healthcare, Fortis, and industry body Nathealth—have opposed a Parliamentary panel’s recommendation to delink treatment costs from room rents and cap room charges. Hospitals argued that room charges reflect the high costs of infrastructure, equipment, manpower, and regulatory compliance, and that capping them could discourage healthcare investments. This debate unfolds as major hospital networks, such as Apollo, Fortis, and Max Healthcare, report strong financial performance and profit growth in recent years. Instead of price caps, industry leaders have suggested lower taxes, improved insurance coverage, and easier access to capital.

Additionally, Union Home Minister Amit Shah addressed the 31st Southern Zonal Council meeting near Chennai, urging the swift resolution of interstate water disputes and advocating for the linking of major rivers to enhance long-term water security. Leaders from Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, and Telangana discussed regional cooperation, manufacturing corridors, and a roadmap toward building a $10 trillion southern economy by 2047.

"The recent legal and regulatory shifts underline a changing operating environment for businesses across sectors. The Supreme Court's ruling on labour codes signals a structural evolution in industrial relations, while SBI's revised fee structure highlights the banking sector's ongoing push toward digital adoption and fee-based revenue diversification. For businesses and financial stakeholders, tracking these macroeconomic and regulatory adjustments is critical for long-term strategic planning and compliance." — Dr. Shishir Gupta, Founder & CEO, StartupLanes