The Finance Ministry on Friday, has issued a stern warning to those converting black money into white illegally. They also said that trials were being watched by Income Tax Department and action is underway. Economic affairs secretary, Shaktikanta Das tweeted, “Those indulging in or colluding with money laundering or converting black money into white will not be spared.”

Another tweet by the economic secretary read, “Trials will be pursued by agencies. Coordinated action underway. The result already visible. Will be more visible in coming days.”

On Monday Shaktikanta spoke to the press about, demonetisation leading to excess cash in the system. He added that this will be tracked by the Reserve Bank of India (RBI). He told the reporters, “It is a situation of excess liquidity and the RBI is managing it. It is definitely on the higher side.”

Economic affairs secretary, Shaktikanta Das tweeted about strict watch on all money transaction by the Income Tax Department

Economic affairs secretary, Shaktikanta Das tweeted about strict watch on all money transaction by the Income Tax Department

On the advice of RBI, on Friday the Central Government, has increased the ceiling of liquidity from Rs. 30,000 crores to Rs. 6 trillion. This action is taken by increasing the Market Stabilisation Scheme bonds where the excess liquid cash in the system is stored in a seperate cash account. This will make their issuance minimum to negligible effect on the Government’s Fiscal deficit year. As a temporary measure to control excess liquidity, RBI announced banks will have to keep aside 100 percent cash reserve ratio or CRR against all deposits made in between 16 September to 11 November. The banks have received a staggering Rs. 8.45 trillion worth deposits so as to exchange old demonetised high denomination notes of Rs. 500 and Rs. 1000. 

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