In a move to curb the flow of black money through copious shell companies operating in the country, the Modi led government aims to develop a system that will track each and every electronic payment transaction made.
What Is The Purpose Of The New Mechanism?
The prime focus of the proposed mechanism will be on corporate data, though it is highly probable that data related to individuals would be recorded as well.
RBI is supposed to put in place a platform where all the non-cash payments and receipts can be recorded.
Which Entity Will Be The Nodal Agency To Maintain The System
As of now, it has been decided to make the Reserve Bank Of India, the sole repository of such information, which won’t be made available to other agencies like the enforcement directorate by default.
Agencies like the IT dept., etc. will have to make specific requests pertaining to certain suspicious transactions to get the required information.
Why is There A Need Of Such A System?
In spite of stringent processes put in place to identify the flow of black money, the presence of a huge number of shell companies has been able to bypass the current system at place.
The new IT infrastructure is supposed to establish a money trail to probe money laundering cases and illegal and shady operations of shell companies around India and take prompt action.
A Step In The Right Direction
Finally after a slew of disappointing steps, most notably being demonitisation, this seems to be a forward step for the intended move of curbing black money.
If the RBI remains to be the nodal agency, this will establish credibility and efficient use of the information. Misuse of such privy information by the IT department to harass companies shouldn’t take place at any cost.
It is no hidden fact that the common man can be harassed unnecessarily even though the transactions may be fair and square. Thus, though the system to be put in place certainly has good intentions, the result might be fraught with ulterior motives.