Business Mantra: Faridabad
Presently on social media news about FM Arun Jaitley’s statement is visible that FM has conveyed the message for declaring illegal assets being made with black money within the time frame given in scheme for compliance window for black money. Otherwise FM has warned serious consequences for those who do not declare.
It is good that FM is again and again showing horns to defaulters as after mallya’s case it may be well said that defaulters deserve only a tight rope around their neck, whether they are bank defaulters or black money defaulters.
But along with tackling the problem of black money dumped in past, Government has to take extreme care that further there is no addition in black money.
Presently there is a crunch of Rs 1000 or Rs 500 denomination notes in bank branches. Moreover state bank of India has requested RBI to examine, why currency holding has increased with public.
According to SBI in March 2016 the bank were facing liquidity problem and there have been many other reasons for this also like, less government spending. But SBI feels there has been lot of currency out flow also and it has added to liquidity problem of banks and has increased public holding of currency.
This finding of SBI is confirmed by present situation of shortfall of Rs1000 and Rs500 value notes as hoarders of black money would prefer to keep black money in higher currency notes.