Thursday, 7 October 2010

Indian Money in Swiss Banks

Indians use Swiss banks to deposit money outside the country. Most of it or almost all of it is black money meaning earned from illegal source. Some of the retired officers from various Indian Services are making efforts to get back that money. This is not an easy job and it is difficult to ascertain whether they would be successful and when. In my opinion first step should be to curb money being deposited in Swiss banks, put hindrance to corruption and then try to get back whatever money has been deposited in foreign banks.

To achieve What is needed is we should make sure that transactions are carried out using money transfer through banks rather than
Cash. In order to achieve this we may proceed in the following manner:-
1. All citizens of the age of 18 or above must have bank account.
2. Most of the citizens are not in a position to keep Rs. 1000.00 as minimum balance. To overcome this there should be new accounts which allow
Zero Balance
Account opening procedure should remain unchanged except allowing zero balance.
3. Banks should store both signature and thumb impression of the person who opens account. Every account holder should be given cheque book free. No charges should be recovered from account holder for cheque book.
4. Core banking facility should be improved for money transfer through cheque. All malls, shops, hotels and similar places should have facility to transfer money for services provided and goods sold. recipient would type a cheque and ask customer to sign and put thumb impression. This cheque should be fed to machine to check balance. If adequate balance is available the customer should put thumb impression again and the machine should complete the transaction.
5. Account holder should be allowed to withdraw cash under certain limits. These may be Rs. up to 10000.00 for a transaction, maximum 4 transactions in a month and total transactions not to exceed Rs. 30000.00.
6. High denomination notes should be taken out in a phased manner. A date should be fixed for taking out high denomination notes i. e. Rs. 100 and above. From this date onwards these shall be accepted in the bank only. The procedure should be all citizens should be asked to deposit high denomination notes i. e. Rs. 100 and above in their bank account. Banks while receiving notes should put a stamp and place account number of the depositor and accept without checking notes. Within 24 hours the genuineness of the notes be checked and genuine notes be deposited in the account and for rest legal action should be taken against the depositor.
7. Election expenditure of a candidate contesting elections is the primary reason for corruption. Therefore, propaganda expenditure should be borne by the agency organising elections. For example general elections for MPs and MLAs be borne by the government. To ensure only genuine candidates contest elections there should be provisions in rules. Foe example the candidate must have say support of 2% of voters in the approved voter list. This should be in writing and the signature and or thumb impressions should be checked by banks. If one voter supports more than 1 candidate his/her support shall not be counted.
8. Those who visit or migrate to other countries should be asked to produce their money accounts abroad. These accounts should be checked for genuineness and clearance given. They should be asked to produce account statement every year and entries other than the accounts submitted earlier should be checked. Wherever, transactions are from other banks/source (other than accounts opened for genuine earning after migration) These should be ceased and all money transferred to India.

There is a need to give a deep thought to first stop corruption and then try for getting money back to India deposited in Swiss or foreign banks.

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