The government has appealed to people not to help holders of unaccounted or illicit money to exchange their cash holding on their behalf.
“Accumulation of unaccounted wealth fuels inflation and corrodes the very basis of our economy. I would appeal to citizens that people holding lots of unaccounted cash may seek your help — don’t let yourself be used for exchange of such notes,” Economic Affairs Secretary Shaktikanta Das said. “The banks will keep records of those exchanging cash and a video recording will be made, so all such transactions will be monitored. Kindly don’t allow yourself to be used for exchanging illegal cash. For legitimate money exchanged for friends, relatives and anybody known to them is okay,” Mr. Das said. RBI Deputy Governor R. Gandhi said those exchanging notes would have to produce a valid government identity card and all transactions would be noted down by the bank branches.
Asked whether these transactions could face scrutiny from the Income Tax department, Mr. Das said, “Yes, they will definitely be reported to the IT department and above a certain threshold, to the Financial Intelligence Unit [assigned to track money laundering and suspicious transactions].”
Published - November 09, 2016 02:57 am IST
