New Delhi: To ensure black money does not escape taxation, the Union finance ministry has asked banks to scan millions of accounts and maintain records of all old and new currency notes deposited by each individual since the government’s demonetisation move.
About Rs 11.85 lakh crore in the now-scrapped Rs 500 and Rs 1,000 notes has been deposited in banks after the government recalled the two high-value notes on November 8.
While the move led to a massive cash crunch in the country, the government had expected a “black money windfall” of about Rs 3 lakh-crore after cash worth Rs 15.44 lakh-crore was demonetised. But there is a worry of almost all of the scrapped cash coming back to the banking system since the deposit deadline is December 30. Scanning accounts will make it easier for the I-T and the ED to probe individuals.
Scanning millions of bank a/cs is impossible: Experts
Earlier the government had said that it would probe and send notices to those who have deposited, between November 9 and December 30, more than Rs 2.5 lakh in the demonetised banknotes. While filling up deposit slips, customers are required to clearly mention amounts deposited in old and new notes (till December 30).
While the move apparently aims at preventing frauds being committed by banks during deposits of old notes, it will also help the government probe any individual as and when needed.
However, some experts feel it’s a near-impossible exercise since there are millions of banks accounts — both in private and nationalised banks. For instance, a 2011 report of the Reserve Bank of India show that there are 624 million savings bank accounts in the country. The Crisil, a rating agency, said that there are over 800 million savings accounts in the country. Going through each and every individual account, experts feel, “will be a humongous task” and wondered if the I-T department has the infrastructure or manpower to do so.
In a letter to the heads of PSU banks and the chairman of Indian Bankers’ Association (IBA), the finance ministry has said that maintenance of records regarding deposits of demonetised and non-demonetised banknotes “is essential both in records of banks and customers”.
