problems

Black money
Black money is major problem in developing countries and black
money is the root cause of terrorism. So it is a problem that has to
be handled by every country in the world.
Black money is the accumulation of currency over a long period of
time. Because currency has not changed for so long, it got
accumulated with many people. Though currency gets changed
once in a while, the old currency is also valid. It gives enough time
for black money to get converted to new currency. The illegally
earned money is getting used for illegal purpose.
Changing currency is the simplest solution to clean black money.
If a country decides to change the currency, it should not give
much time for people to convert it to new currency. Give, may be,
just one month time. Dont announce the plan of currency
change. Plan properly, estimate the currency requirement, print
all required currency, decide the date and announce. Request
people to deposit all the currency in banks and withdraw only
required amount as new currency. When they go to bank for
depositing currency, everybody needs to give their PAN number
or social security number or some way to identify themselves.
People cannot just exchange the currency. They cannot give old
currency and take new currency. They need to deposit the money
in bank account. After that they can withdraw depending on their
requirement. There is upper limit for withdrawal per day. If
anybody is depositing huge amount, keep track of that person.
With this process, all the currency will get converted. Because
time given is less, people that are having black money need to
decide quickly whether to convert to the new currency or lose the
money. With this way, currency part of black money will be
cleared completely.
Foreigners who came on trip can get their money converted at
any bank. Foreign exchanges will be having different procedure
for currency conversion. People living in foreign countries have to
deposit the currency in foreign banks.

For poor people who are not reading news or unaware of this
change, we can relax time for a longer period. They will be having
very less currency with them. For them, give monthly one day for
currency conversion. Set maximum conversion limit to 10,000
rupees or less. This process can go for about one year. With this
poor people are not getting affected. They can change the
currency within one year. Nobody is living without using money
for one year. If they go to any shop, the shop keeper will not allow
the old currency. Then this person will understand the change and
how to convert. If they are earning, they will see new currency
and understand why they got new currency. Even if poor people
are away from media, they will get the information very soon. But
the limit of currency that can be converted after one month is
very less. Banks will not allow anybody who tries to deposit more
cash with old currency after one month. The time limit has to be
very strict.
With this process, we can find people that are having black
money. If they dont show up the money, they are under loss
because they cannot use that money later. They will be losing the
money permanently. Government will have the full details of
which country is having what amount of currency. This information
is useful for economy planning and to find country supported
terrorism.
If a person withdraws huge currency, government can track the
person and his/her activities along with the currency distribution.
As all the banks are connected worldwide, if any huge transaction
happens, that information should reach government immediately.
Government can keep a system (computer) just to track this
information and set limits on transactions within country and
across countries. Whenever transaction crosses the limit, a log is
generated in government system. That is up to CBI to decide on
how to utilise that information.
If all governments join hands to tackle terrorism, tracking of
money movements will be very easy with current technology.
Governments can even predict where the terrorist accumulation is
happening and even their activities with money movements. If a
person is suspected of having links with terrorists, that persons

accounts and all the accounts transacting with those accounts

can be monitored all over the world. That gives an idea of where
the money is moving to. When each persons all bank accounts
are linked with PAN number or social security number, all the
accounts of the person all over the world also can be linked.
All the banks in the world can do one time review of account
holders, especially for those with large bank balance. Banks can
check whether they can identify a person or an organisation as
the owner of the account. They can update account holders latest
address and other identity details. If they cannot trace an account
owner, that account can be seized and the bank balance can be
transferred to the government. The people who earn large
amounts illegally will be depositing everything in foreign banks.
With this process, if they cannot show up and link those accounts
with their identity, they lose that money to government. Public
money goes back to public. Terrorists and criminals will be under
trouble with this process. If they show up, they will be caught.
Otherwise they lose money. This process of verification can be
done once in a while to find out accumulation of large amounts in
illegal hands.
If we track both currency and electronic money, there is no
escape route for terrorists. Terrorism cannot live without money.
The cost of this process is very less compared to the black money
and the damage it is causing. The money spent by the
government to control terrorism and the damage caused by
terrorism can be saved. One time printing and distribution of new
currency is not a costly affair for any country where majority of
people use electronic money for all transactions.
If all the countries do currency conversion once in this
technological era, complete black money will be cleaned from the
world. It is not necessary for all countries to do it together. But if
all does it within a year, the effect will be very high.
Countries like India, with huge number of poor people who work
for daily wages, may feel that they cannot reduce currency usage.
Because building construction workers or road construction
workers work for daily wages. So the contractor needs to

withdraw huge amounts of currency to give their wages. Because

that is valid reason, banks allow them to withdraw huge currency.
Government can stop this and improve lives of poor people along
with reduction of currency usage. Let all poor people get savings
bank account with an ATM card, with zero balance and without
any penalty for keeping no balance in their accounts. Like
corporate companies, construction contractors will also deposit
workers wages into their accounts directly. There are many uses
of this.
1. The contractors time spent for distributing wages comes
down to minimum. Once all the account numbers and their
wages are recorded, money distribution happens with a
single click.
2. Tax audits are easy.
3. Latest technology reaches to poor people.
4. Poor people get savings account and a concept of saving.
They can withdraw only what they need. They can see
money accumulation by leaving small amount daily and they
can use it for bigger task.
5. There is security for their hard earned money.
6. With help of bank, they can plan interest earning fixed
deposits, recurring deposits or other schemes.
If poor people start using bank accounts and ATMs, there will not
be any requirement for rich people to withdraw huge amounts of
currency. After few years government can set maximum limit for
cash withdrawal. That reduces possibility of future black money
accumulation.
Back to Home
Related articles:
Poverty, Terrorism, Corruption, Changes in Election process, Demand for
solutions, Concept of minimum support
Sitaram Naik, Simple solutions, Complex problems, Proposals of Sitaram
Naik, Writings of Sitaram Naik
http://www.complexproblems.in/

AIMS AND OBJECTIVES

a. To start, Promote, assist and carry on socio- economic, educational and employment programmes for the welfare
and development of women, youth and children who are economically poor, Handicapped and/or suffering from
unemployment and poverty.

b. To start, maintain, promote or sponsor training centres for human resource development, leadership skills and to
provide training in skills and trades for employment purposes, sustainable agricultural practices.

c. To start, undertaken sponsor or promote cottage industries, group enterprises, production centres, poultry, diary,
agricultural farms, horti-floriculture, Industrial units, co-operatives and such other.

d. To encourage, start, women's, youth, Children's clubs for recreational programmes like Sports, Music, Dance,
Cultural Programmes as well as Rural Developmental Programmes.

e. To undertake, initiate, promote, self help groups, credit unions savings schemes, mutual funds etc. for the benefit
of the target groups.

f. To concentize, educate, render help, assistance in any form and /or to implement any scheme for the welfare of
the community in terms of health, water and sanitation programmes, projects including programmes on
eradication and prevention of AIDS etc.

g. To promote, involve in National and International integration programmes by promoting inter-religious, intercultural programmes ecological, linguistic programmes etc.

h. To provide computer education to all sections of people for nominal fee and for handicapped without any fee.
i. To give, provide and/or render help and assistance in any form for the relief of persons and animals affected by
natural calamities or by poverty, sickness etc.

j. To establish, promote, aid, implement documentation and dissimination of vital information and also to publish
books, pamphlets, periodicals, news papers, magazines etc for the advancement of education socio-economic,
ecological and cultural aspects.

k. To grant, pay or give scholarships, stipends, prizes, rewards, awards, allowances and /or any kind of assistance to
students, scholars, researchers with the view to help them in persuing their studies in any form of academic
persuit or research.

l. To establish, promote, set-up, run, maintain, assist, finance, support and/or aid or help in setting up schools,

colleges, lecture halls, research centres, libraries and other establishments or institutions for the advancement of
education and knowledge in arts, sciences, humanities and all other useful subjects in all their manifestations.

m. To start, maintain, promote and/ or aid old age homes, homes for handicapped, mentally retarded persons, street
children etc.

n. To start production cum training courses for various technology for women with an aim of getting job

opportunities in the trades of electronics Televisions, Cable, Typewriting, Phone Operating, Tailoring, Electronic
Embroidery, Painting, Plastic and Fibre works.

o. To improve the economic moral and social standards or villagers in the area of operations of the society.
p. To alleviate poverty and bring about better living conditions mutual co-operation and unity among the villagers
and in general Rural Development by implementation KVI programmes.

q. To start, encourage, assist and carry on such other activities which are incidental for implementation of KVI
programmes.

r. For furtherance of all or any of the aforesaid objects, the Society shall have authority.

To solicit obtain or accept subscription, Donation, Grants, Gifts requests and trusts from any person, firms, Bank
or Local Authorities or corporate bodies like Khadi and Village Industries Commission and /or state KVI Board
and/or any Institutions and/or the Union/State Government.

To acquire by gift, purchases, exchanges lease on hire on otherwise how-server any land, buildings essements and
any property movable and /or immovable and for any estate or interest for the furtherance of all or any of the
objects of society.

To build construct and maintain houses, structures or buildings and alter extend improve, repair enlarge or modify
the same including any existing buildings (and to provide and equip the same with light, water, Drainage,
Furniture, Fittings, Instruments, Apparatus and appliances) and all other necessities for the use to which such
buildings is to be put up or held.

To sell, Manage, Transfer, Exchange, Mortage, Demise, lease or let out dispose of or otherwise deal with the
properties whatever (Movable or Immovable) belonging to the society.

To borrow and raise money with or without security or mortage, charge, Hypothecation, or pledge over all or any
of the immovable or movable properties belonging to the society or in any other manner whatsoever.

To open and operate accounts in Bank or to deal with Banks in any manner whatsoever, for furtherance of objects
of the society and also on the basis of interest subsidy eligibility certificate issued by the KVIC and
mortage/hypothicate the property as security to the Bank.

To open and conduct branches and to undertake such other activities for furtherance of all or any of the objects of
the society.

s. To do all other lawful things incidental or conductive to the of the society and to incur necessary expenditure their
on.

t. The profits of the institution shall be utilised in furtherance of the objects of the institution and shall not be

distributed amongst the members.

The management of the affairs of the institution shall be entrusted to the duly constituted managing committee as
provided in the rules and regulations of the institution from time to time.
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India third on black money list: report

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Though the new government says it is committed to tackle this menace, there are no official figures for the
overall size of illicit wealth stashed by Indians within the country or abroad. File photo

TOPICS
corporate crime
economic offence/ tax evasion

Global Financial Integrity puts the cumulative illicit money moving out of
the country at Rs 28 lakh crore in 10 years
As India continues its pursuit of suspected black money stashed abroad, an international
think-tank has ranked the country third globally with an estimated USD 94.76 billion
(nearly Rs 6 lakh crore) illicit wealth outflows in 2012.
As a result, the cumulative illicit money moving out of the country over a ten-year period
from 2003 to 2012 has risen to USD 439.59 billion (Rs 28 lakh crore), as per the latest
estimates released by the Global Financial Integrity (GFI).
Russia is on the top with USD 122.86 billion, followed by China at the second position (USD
249.57 billion) in terms of the quantum of black money moving out of a country for 2012
the latest year for which these estimates have been made.
The Washington-based research and advocacy group further said that the illicit fund
outflows from India accounts for nearly 10 per cent of a record USD 991.2 billion worth
illegal capital that moved out of all developing and emerging nations in 2012 to facilitate
crime, corruption, and tax evasion.
As per GFIs 2014 Annual Global Update on Illicit Financial Flows report, that the
cumulative illicit outflows from developing economies for ten years between 2003 and 2012
stands at USD 6.6 trillion.
This includes USD 439.59 billion worth illicit money that has moved out of India in these
ten years, putting the country at fourth position in overall ranking for a decade, after China
(USD 1.25 trillion), Russia (973.86 billion) and Mexico (USD514.26 billion).
In these ten years, an average of USD 43.96 billion of black money is being sent out of India
every year, GFI said.
The estimate of these huge illegal money flow follows a Supreme Courtconstituted Special
Investigation Team (SIT) tracing Rs 4,479 crore in the accounts of Indians figuring in a list
of account holders of HSBCs Geneva branch.
Besides, the SIT has also disclosed tracing unaccounted wealth worth Rs 14,958 crore within
India, which are now being investigated by the Enforcement Directorate and the Income
Tax Department.
The issue of black money has been matter of a serious political debate in India, including
during the last general elections. While the new government has said it is committed to
tackle this menace, there are no official figures for the overall size of illicit wealth stashed by
Indians within the country or abroad.

As per GFI estimates, the amount of illicit funds that moved out of India in 2012 was much
lower than the same for neighbouring China, as also Russia.

illicit financial flows are the most damaging

economic problem plaguing the worlds developing
and emerging economies
These three countries are followed by Mexico at the fourth place (USD 59.66 billion) and
Malaysia at fifth (USD 48.93 billion).
Authored by GFI chief economist Dev Kar and GFI Junior Economist Joseph Spanjers, the
study further said that illicit financial flows of a record high USD 991.2 billion in 2012
marks a dramatic increase from 2003, when size of such funds stood at USD 297.4 billion.
Over the decade (2003-2012), the study found that illicit financial flows are growing at an
inflation-adjusted average rate of 9.4 per cent per year.
However, in many parts of the world, particularly in the Middle East and North Africa
(MENA) and in Sub-Saharan Africa, illicit flows are growing at an average annual inflationadjusted rate of 24.2 and 13.2 per cent, respectively.
As this report demonstrates, illicit financial flows are the most damaging economic
problem plaguing the worlds developing and emerging economies, GFI president
Raymond Baker said.
These outflows-already greater than the combined sum of all FDI and ODA flowing into
these countries are sapping roughly a trillion dollars per year from the worlds poor and
middle-income economies, he said.
However, the troubling fact is that these outflows are growing at an alarming rate of 9.4 per
cent per year, which is twice as fast as global GDP, Baker noted.
According to him, it is simply impossible to achieve sustainable global development unless
world leaders agree to address this issue head on.
Thats why it is essential for the United Nations to include a specific target next year to
halve all trade-related illicit flows by 2030 as part of post-2015 Sustainable Development
Agenda, he said.

introduction

In India, black money refers to funds earned on the black market, on which income
and other taxes have not been paid. The total amount of black money deposited in foreign
banks by Indians is unknown. Some reports claim a total of US$1.06 trillion is held illegally
in Switzerland.[1] Other reports, including those reported by the Swiss Bankers
Association and the Government of Switzerland, claim these reports are false and
fabricated, and the total amount held in all Swiss bank accounts by citizens of India is
about US$2 billion.[2][3]
In February 2012, the director of India's Central Bureau of Investigation said that Indians
have US$500 billion of illegal funds in foreign tax havens, more than any other country.[4][5] In
March 2012, the government of India clarified in its parliament that the CBI director's
statement on $500 billion of illegal money was an estimate based on a statement made to
India's Supreme Court in July 2011.[6]
In a televised address on 8 November 2016 by Indian Prime Minister Narendra
Modi announced that banknotes of 500 and 1000 would cease to be legal tender from
midnight. Automatic teller machines at some places were closed on 9 and 10 November.
Government organisations have brought out new notes. The Govt of India had accepted the
proposal of RBI in bringing out 2000 banknotes and a new version of the 500. The old
notes are being removed from circulation.[7][8]
Contents
[hide]

1Source of black money

o

1.1Round-tripping of black money

22016 Panama Papers leak

3Black money in Swiss banks

42015 HSBC leaks

5Domestic black money

6SIT on black money

6.1Double taxation agreements

6.2Criticism of government
7Hasan Ali case

8Estimates of Indian black money

9Public protests and government's response

o

9.1MC Joshi committee on black money

9.2Tax Information Exchange Agreements

10Proposals to prevent Indian black money

o

10.1Reducing disincentives against voluntary compliance

10.2Banking transaction tax

10.3Economic liberalisation

10.4Reforms in vulnerable sectors of the economy

10.5Creating effective credible deterrence

10.6Supportive measures

10.7Amnesty

10.8International enforcement

10.9Modified Currency Notes

10.10Corruption in education

10.11Withdrawal of currency notes of higher denomination

10.12Ban on 1000 currency notes

11See also

12References
benefits
Availability of Knowledge
Advantages
The internet which was once just a little puddle, now, have become an ocean; an ocean of
knowledge. It is like a magical crystal ball which has an answer for every question of yours and
the best thing about it is; it is completely free. I know how much I have learnt from the internet.
How internet is better than books when it comes to knowledge? The answer to this would be the

infinity of the internet. Plus, apart from this, learning from internet is much more fun. You have
all kinds of videos about basically every topic that you can imagine of. Disadvantages
If availability of knowledge helps people to do good things, it is also, a help for evil. There are
thousands of websites which tells you ways to make a bomb or how to commit suicide. People
even learn how to hack websites from the internet.
Communication
Advantages
Another amazing thing about the internet is the communication that it makes possible. Most of
the business firms communicate with each other with the help of e-mails. It is not only a faster
way but also the safer way too. With internet you can video chat with a person who might be in
some other continent as of yours. Disadvantages
We are getting so use to of virtual communication that we are lacking a physical contact with our
acquaintances. It is separating us from the real world around us, which I think smothers the
development of personality of an individual.
Smaller World
Advantage
Due to internet our world is becoming smaller and smaller. Computers which are connected to
internet are connected to each other. This facilitates the transfer of a file or even a folder from
one computer to another. Disadvantage
Due to this connection your personal data can be stolen from your computer. Various kinds of
virus, malware, and spyware enter your computer via internet.

history
histoty of blackmoney,in 1930s when rationing sytem was introduced in india,the food become very expensive and
scares and everybody has to pay premium on food,that time rationing shop use to bill 100kg but give only 90 kg to
the customer,this extra 10 kg was distributed among rationig officer and incometax officer police and shopkeepr,than
we got independece post independece over all devlopment started we got money from several nation as loan/aid,the
politicaly connected people took the advantage of it and made good money and in turn gave donation to political
parties,in late 60's giving donation to political party was banned and political parties were left for fend for self.
the ruling party at varios level i.e. centre,state ,municipality,zilla parishad,gram panchayat had substantial resources
at there hand started getting money from disposing these resources overtime a formula devloped the share was
determined as under
ruling party 30 %

oppositing 10%
bueraucrates 10 %
balance for state
in 80s IMF and IBRD came satrting giving loan to every country for devlopment work that money was distributed
infollowing manner
ruling party 30 %
oppositing 15%
bueraucrates 20 %
balance for state
in 90's the new economy devloped and computer /cable tv/mobile phone brought huge consumer base and millions of
people flocked to use them and started paying for that,
this service was depending on the govt.permit licence for which set formula was used,
2004 law was made to convert all this illgotten wealth into the white by using stock exchange, FDI etc, lawyers
fundmanager chartered accountant and various agency created such a web of the entity that the source of money
was not traceable.
the bureeaucate and govt official who couild not share this booty started making money by maladministarion and
charging extra for all the service which govt has to provide to citizen
this illgotten wealth was invested and arrogence set in these peeople which is causing all the problem .
steps for the recovery
define black money
force all political party to declare there quaterly a/c
political donation legal
scrap/modify all the revenue law central state municipal
follow the model where everybody feels secure
bureacartes caught with illgotten wealth should not get constitutional protection and treated as thief

Posted by Subodh at 00:34 0 comments