Trail of transactions: That’s what Modi wants to map in his fight against black money
The most difficult a part of any investigation in a very black cash case is establishing a path of transactions. currently the govt desires to ascertain a system that may track each electronic payment dealings. the govtand therefore the banking company of Republic of India (RBI) have begun discussions to place in situ a ‘search engine’ or a information of all payment transactions within the country as they intensify efforts to trace black cash and establish a cash path to probe hiding cases and operations of shell firms, reports TOI.
This comes within the wake of a series of steps to limit on shell firms and hiding.
The focus of the planned mechanism are going to be on company information, though informationregarding people would even be on the market within the information.
The proposal is to let run place in situ a platform wherever all non-cash transactions will be recorded and shared on a need-to-know basis, says the report, citing a government officer. the info wouldn’t be on the market on faucet however would be shared supported a particular request, he said.
However, there ar doubts if the planned tool are going to be adequate to assist investigation agencies track transactions meant to launder or siphon cash. as an example, a Rs five large integer cheque payment by person A to B will be caterpillar-tracked. But, it’s attainable that A had received Rs twenty large integerfrom person C and therefore the information alone isn’t seen to be adequate to alter the difficulty. in step with officers, trailing all transactions regarding associate degree entity and its key functionaries is alsotroublesome within the current setup.
A path of transactions is seen to be crucial within the government’s bid to get rid of shell firms, used for hiding functions, from the system. These entities, usually with low equity base and tiny business financial gain, route funds through a maze of firms on commission basis.