Black money in ATMs

As per the mandate by the RBI, 500 rupee notes minted prior to 2005 is being viewed as counterfeit from April 1. One has to visit the RBI office and deposit these notes if they intend to have the newer ones. If the amount is less than ten thousand rupees, the person need not show his pan number and can walk home with the new notes. If a person wants to change the currency which is above Rs 10,000, then he would need to produce his pan number as well as details of his IT returns. If there is a mismatch with the details given, then in all probability, 20 per cent of the money would be deducted as income tax.

Taking advantage of this new directive, certain black money holders have come up with an innovative idea to convert their money into white. According to highly placed sources, a few agencies which ferry cash to the ATMs have formed a nexus with the black money holders. These vans are run by private security agencies and are engaged by various banks. These vehicles were enjoying general immunity from security agencies as they are employed by banks after necessary diligence.

Accordingly, the newer currency being carried in the vans is being exchanged by the black money holders, who have brand new notes printed before 2005. As a commission for the exchange, the security agency is offered two to four per cent of the transaction value. The older notes are then dumped into these ATM machines by these agencies. Recently, it was noticed that a few ATMs in the city had old notes. People as well as a few bank officials later lodged a complaint with the Central Bureau Investigation (CBI). To check the matter, the CBI top brass would be meeting major bank chiefs shortly. Commenting on the crime, a senior police official said, “The cops were not checking ATM cash transfer vans earlier. With the poll season and with money being given as freebies, we must check these vans also now.”

“An intelligence input on ferrying black money in cash vans was shared during a recent meeting between the officials of Finance Ministry and Election Commission. It was decided that measures would be taken to check illegal money circulation,” official sources said.

“It has been decided to ask Indian Banks' Association (IBA) to take necessary measures and it may issue directions in this regard,” sources privy to the meeting said. “The Finance Ministry is also in the know and may take necessary steps in view of the latest input. There has been a recent instance where illegal cash was found in a van carrying money for ATMs,” the sources said without giving further detail of the incident.

Revenue intelligence agencies including Directorate of Revenue Intelligence (DRI), Central Economic Intelligence Bureau (CEIB) and Enforcement Directorate (ED) among others are keeping a strict vigil on movement of illegal money during the ongoing elections.

Over Rs 195 crore in cash has been seized across the country so far by Election Commission appointed teams.

A total of Rs 118 crore cash has been seized in Andhra Pradesh, Rs 18.31 crore in Tamil Nadu, Rs 14.40 in Maharashtra, Rs 10.46 crore in Uttar Pradesh and over Rs 4 crore in Punjab, apart from numerous other small seizures in the rest of the states, according to a latest EC data.