A survey conducted by the Govt. of India’s Financial Intelligence Unit (FIU) has presented a bleak picture of the prevailing scenario of the Indian economy as it has stated that black-money circulation has picked up considerably in the past two years.  “Doubtful transactions have gone up by more than 480% in the post-demonetization phase in the country,” a recent FIU report is said to have pointed out.

Prime Minister Narendra Modi took the entire nation by surprising by announcing on the night of 08th November, 2016 that the existing Rs.1000 and Rs.500 currency were being demonetized and that people would have to exchange their old currencies for new ones at Banks.  It triggered huge panic among the business community as people had to wait for hours together at ATMs/Banks to get their old currency notes exchanged and also to withdraw money from their own bank accounts as ATMs ran short of new currency notes.

Though the Centre holds that the demonetization process had rooted out the practice of black-money laundering, it is indeed ironical that a Central agency of the Union Finance Minister has painted a bleak picture of the prevailing scenario.  FIU reviewed the doubtful transactions for the period 1016-17 and found that there were 3.23 lakhs additional ‘doubtful transactions’ in Banking and in other sectors.

“Doubtful/illegal transaction have gone up by more than 400% in many financial institutions, cooperative banks, public sector/private banks, etc.  Doubtful transactions stood at 4.10 lakh in 2015-16 but went up by 3.23 lakhs to reach 7.33 lakhs in 2016-17 in the post demonetization phase.  Some terror groups have also benefitted via such transactions,” the report said.