Black into White.
The Govt. has withdrawn Rs. 2000 Notes from circulation. The total value of these banknotes in circulation has declined from 6.73 lakh crore as on March 31, 2018, 37.3 of Notes in Circulation to 3.62 lakh crore constituting only 10.8 of Notes in Circulation on March 31, 2023. This means a sum of Rs. 3.11 lakh Crore in Rs. 2000-note denomination has been hoarded outside the system by corrupt Politicians, Money Launders, Terrorists, Anti National elements, Traitors, Nations hostile to India, Naxalites, Corrupt Bureaucracy, Separatists and other Corrupt persons, etc. As decided by RBI, Rs. 2000 notes can either be deposited in a bank account or exchanged at banks. The SBI issued instructions for the exchange of Rs 2000 banknotes in SBI. The SBI clarified that the facility of exchange of Rs 2000 denomination bank notes up to a limit of Rs 20,000 at a time will be allowed without obtaining any requisition slip. The SBI has modified its previous instructions which required the tenderers to fill a requisition slip. In partial modification of instructions contained in Para 4B, it has been decided that the facility of exchange of Rs 2000- denomination Bank Notes to all members of the public up to a limit of Rs 20000- at a time will be allowed without obtaining any requisition slip. The exercise of withdrawing Rs. 2000-note from the monetary system is going to provide an opportunity to corrupt persons etc. who walk into the bank every 5 minutes and exchange Rs. 20000/- without the bank maintaining any record of the person who exchanged these notes because of the instructions that the facility of exchange of Rs 2000 denomination bank notes up to a limit of Rs 20,000 at a time will be allowed without obtaining any requisition slip. After 30th Sept 2023, a sum of Rs. 3.11 lakh Crores hoarded outside the system now will be exchanged and again remain outside the system without even Rs 1 being levied as income tax. Of course, it would now require 3 times more space to hoard the same value. Nearly 130 crore Aadhaar cards were issued by the govt. and nearly 225 crore bank accounts opened with the bank, then why was the govt. has given the opportunity of Exchanging notes and not requiring the clients to compulsorily deposit the money in their bank accounts and then withdraw the same, given the perception that the general public hardly has any Rs. 2000-note with them which may inconvenience them due to deposit of the same into their bank account. We are again going to witness huge corruption by many unscrupulous bankers as had happened during the first demonetization who would exploit the situation by offering bulk exchange services at a certain percentage say 25 of the value of money to be exchanged because they would not be required to maintain any document or pass any entry in their accounts for the exchange of the currency and the exercise of hiring the services of chartered planes by corrupt persons to fly Rs. 2000-Note to the North-East region and convert the same into white money by depositing them in the bank accounts of vulnerable natives of this area who have bank accounts but no significant money in these accounts. “As per section 10(26) of the Income Tax Act, in the case of a member of a Scheduled Tribe or in the States of Arunachal Pradesh, Manipur, Mizoram, Nagaland, Tripura, Assam, in Ladakh region of the State of Jammu and Kashmir, any income which accrues or arises to him from any source in the areas or States aforesaid, or by way of dividend or interest on securities will be exempt from income tax. ( Section 10(26)?The N-E persons eligible to enjoy this exemption are persons staying in North Cachar Hills District, Karbi Anglong District, Bodoland Territorial Areas District, Khasi Hills District, Jaintia Hills District, Garo Hills District, State of Arunachal Pradesh, Manipur, Mizoram, Nagaland, Tripura. Once the money is deposited, it would be easy for corrupt Politicians, Money Launders, Terrorists, Anti National elements, Traitors, Hostile Nations,?Naxalites, Corrupt Bureaucracy, Separatists, and other Corrupt persons, etc. to re-channelizing the money back into circulation at no income tax. It is advised that the government should withdraw the exemption u/s 10(26) at least for the limited period during which the scheme of Exchange of 2000-Notes i.e. upto 30-09-23 is in operation to make such deposits taxable as provided under different sections of the Income Tax Act. It is important for Govt. to ask all banks who would engage in the exchange procedure to compulsorily maintain the KYC documents of the exchangers or depositors to avoid a bigger fraud or scam.