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People indulging in Money Laundering Activities and Converting their Black money into White will not be Spared, says Shaktikanta Das

Black money hoarders converting their unaccounted money into white using the poor people

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Indian Currency, Pixabay

New Delhi, December 2, 2016: The Finance Ministry on Friday warned the black money hoarders that those involved in the conversion of black money to White will not be spared.

The government on November 8 had announced the demonetization of Rs. 500 and Rs. 1000 currency notes to root out corruption and terrorism from the country. But, black money hoarders were converting their unaccounted money into white by using the poor people.

Prime Minister Narendra Modi warned people that they should not convert their ill-gotten by using the poor people as it would put them into trouble.

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Modi said in his radio talk “Mann ki Baat”, “Some people think they can convert their black money into white. And they are looking at unlawful ways. It’s unfortunate they have chosen to use poor people for this.”

“I want to say that is us up to them to abide by the law or break it, it is up to them if they want to correct themselves. The law will deal with them. But please don’t play with lives of poor,” Prime Minister Modi added.

The government urged the citizens of India to help out the government in rooting out black money.

“Those indulging in or colluding with money laundering or converting black money into white will not be spared,” Economic Affairs Secretary Shaktikanta Das tweeted.

“Trails being pursued by agencies. Coordinated action underway. Result already visible. Will be more visible in coming days,” he added.

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According to the Taxation Laws (Second Amendment) 2016, those caught illegally converting money will have to cough up 60 percent tax plus penalties, which will come to 85 percent. The Lok Sabha on Tuesday passed this Bill that seeks to tax money deposited in bank accounts post demonetisation.

Finance Minister Arun Jaitley said that the bill was brought after it came to know that people were exchanging the demonetised Rs. 500 and Rs. 1000 currency notes illegally, mentioned PTI.

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The government even requested people to provide information of such illegal activities to the IT department so that strict action could be taken against them and help in curbing out black money from the country.

The Ministry said in a statement, “Income Tax and penalty would be subjected if it is found that the amount deposited in the account was not of the account holder but of somebody else. Also, the person can be prosecuted for abetment under the Income Tax Act.”

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“Black money is a crime against humanity. We urge every conscientious citizen to help join the government in eradicating it,” it added.

The tax department has enclosed that cash deposits of more than 2.5 lakh in bank accounts would have to provide PAN card.

prepared by Zoya Arshi from NewsGram Twitter: zoyaarshi96

 

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Demonetisation, Aadhaar Spurred Digital Payments Growth: RBI

Pointing to a major area for improvement, the study showed that only three per cent of the population in India used the Internet to pay utility bills in 2017

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long term impact on Real Estate
Demonetisation aided with RERA and GST will put long term impact on Real Estate. Pixabay.

After the demonetisation of Rs 500 and Rs 1000 notes in 2016 pushed digital payments, Aadhaar-enabled electronic know your customer (eKYC) resulted in an exponential growth of such payments in the country, according to a new report by the Reserve Bank of India.

Transactions in which both the payer and the payee use digital modes to send and receive money are referred to as digital or electronic payments.

India recorded an accelerated growth rate of over 50 per cent in the volume of retail electronic payment transactions in the last four years, said the report titled “Benchmarking India’s Payment Systems”.

The growth in 2018-19 was largely due to the steep growth in Unified Payments Interface (UPI), it added.

“In India, the smartphone revolution has seen an explosion in digital payment options, from e-Money to the Unified Payments Interface (UPI) to a combination of the two. After demonetisation, the use of e-Money picked up on a very large scale,” the findings showed.

The digital landscape changed with higher usage of e-Money, UPI, Aadhaar Payments Bridge System (APBS), RuPay, and Bharat Bill Payment System (BBPS), among others.

With 3,459 million e-Money transactions, India was only behind Japan and the US (data on China not available) in 2017 with respect to volume of e-Money transactions, the report said.

The study revealed that over the years, the number of debit and credit cards also increased considerably in India.

Aadhaar Card Reader Logo. Source: Wikimedia

India had 331.60 million and 19.55 million debit and credit cards respectively at the end of 2012. The numbers grew to 861.7 million and 37.49 million respectively at the end of 2017.

By March 31, 2019, the number of debit and credit cards issued were 925 million and 47 million, respectively.

However, the study showed that the cost of digital transactions was a factor inhibiting their growth.

Merchants have to cash out or transfer to their banks accounts at a cost and at times these costs are passed on to the consumer.

“A few countries have tried to regulate costs to ensure that the charges are not usurious, but the jury is still out on whether such a regulation promotes the growth of digital payments. With banks pushing and merchants pulling, it isn’t clear if such caps will discourage the use of cash,” the report added.

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Pointing to a major area for improvement, the study showed that only three per cent of the population in India used the Internet to pay utility bills in 2017.

The report compared the payment ecosystem in India with the systems and usage trends in other major countries such as Australia, Brazil, Canada, China, France, Germany, Britain and the US. (IANS)