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May 28, 2014 Share Print 0

India has set up a special task force to find illicit money, in one of the first decisions taken by the government of new Prime Minister Narendra Modi.

The special investigation team (SIT) would seize “black money” – cash that has not been declared or taxed and is mostly deposited in foreign banks.

The decision was taken at the first cabinet meeting of the new government.

According to some estimates, some $500bn (£297bn) is deposited in overseas tax havens.

In January, the country’s central bank announced the withdrawal of all currency notes printed prior to 2005 from 31 March in a bid to curb the circulation of black money.

The SIT on black money would be led by retired Supreme Court judge MB Shah and its vice-chairman would be another former judge, Arijit Pasayat, the new Law and Telecoms Minister Ravi Shankar Prasad.

Speaking after Tuesday evening’s cabinet meeting, Mr Prasad said “unearthing black money was an important issue” for the new government.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.