India taps RBI to track financial transactions

10 July, 2018 12:00 AM printer

MUMBAI: In a move aimed at widening the crackdown on black money and following the money trail flowing in and out of thousands of shell companies, the Centre is planning to set up an information technology (IT)-based mechanism to keep a tab on all non-cash, financial transactions in the country.

Highly-placed government sources involved in devising the initiative said the Reserve Bank of India (RBI) had been asked to develop the IT infrastructure for this purpose. There have been a series of interactions over the past one month to discuss the issue, with these parleys attended by top government officials from the Ministries of Finance and Corporate Affairs as well as RBI officials, report Agencies

Currently, the idea is to make the RBI the sole repository of such information, which will not be made available to other agencies such as the income tax department and the enforcement directorate as a default. Such agencies may be required to make specific requests to the central bank if they want information on a particular set of entities, reports The Hindu.

An official aware of the development said that although the data will be captured for all transactions irrespective of the size of the transactions, the large ones would be relevant for enforcement purposes.