The Government's White Paper on black money is useless and the exercise futile. Many know the magnitude of black money in India and that stashed abroad, though they cannot reveal it.

What the Finance Minister should have done is to announce some methods to bring back black money and use it for development or to cover the deficit. To mobilise resources and to avoid selling out public sector units, the Minister should have announced an amnesty scheme to induce people to bring back unaccounted money from abroad, which could have been shared equally between them and the Government.

S. Raghunatha Prabhu

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Electronic transactions

The Reserve Bank of India has come out with a new notification on rationalisation of agency commission for Government transaction payable to banks.

According to the new guidelines, banks will get Rs 50 a transaction.

However, they will get only Rs 12 for an electronic transaction. Electronic transactions involve remittance of funds from the remitter's bank account though the Internet as well as all such transactions which do not involve physical receipt of cash/instruments.

Banks should be encouraged to make customers use the electronic mode, whereas this decision of the RBI will have the opposite effect.

Banks may also advise customers to issue cheques for tax payment as that will fetch them more commission. This is a retrograde step.

S. Kalyanasundaram

Chennai

(This article was published on May 23, 2012)
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