Posted on Thursday, March 05, 2015 - 10:07 am:

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Sannayi_nokkulu:

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Posted on Thursday, March 05, 2015 - 10:02 am:

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Gsn1:

Looks like since last few years (when the PAN concept was introduced) the blackmoney rotation in India has been greatly controlled.

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Thikka_sankara:

eee Modi desaniki pm aaa Gujarat ollakaa....

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Posted on Thursday, March 05, 2015 - 10:00 am:

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Bushu:

dhaniki a whole VC industry undane undhi gaa .. they should encourage that.

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Bushu:

open a company, grease a bank manager, get a loan and then declare sick. not sure of the company law in India kaani looks like he gets out clean. in 6 months, another company, another bank .. collateral lekunda public banks ki enduku risk?

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Posted on Thursday, March 05, 2015 - 09:59 am:

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Emc2:

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Posted on Thursday, March 05, 2015 - 09:58 am:

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Emc2:

india is india

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Posted on Thursday, March 05, 2015 - 09:54 am:

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Bushu:

Modi govt vachina tharvatha reliance market value fell by 30% or so anta

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Tilak:

yeah right .. Forget about Mukesh .. now another Gujju thug ..

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Posted on Thursday, March 05, 2015 - 09:52 am:

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Tilak:

now another Gujju thug ..

http://www.rediff.com/business/report/pix-dilip-shanghvi-pip s-mukesh-ambani-as-richest-indian/20150305.htm

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Posted on Thursday, March 05, 2015 - 09:51 am:

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Tilak:

Bump for critics and cynics ..

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Posted on Thursday, March 05, 2015 - 09:49 am:

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Tilak:

Funding the unfunded: Mudra Bank to help small firms to grow

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Posted on Thursday, March 05, 2015 - 09:47 am:

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Thikka_sankara:

reliance odini moosesi appudu kanipinchamani chepparu....

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Posted on Thursday, March 05, 2015 - 09:47 am:

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Cinejeevi:

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Tilak:

Black transactions chese vallaki makkelu irige laws vastunnayi .. beware ..

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Thikka_sankara:

mundu reliance odini moosesi appudu kanipinchamani chepparu....

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Posted on Thursday, March 05, 2015 - 09:45 am:

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Tilak:

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Posted on Thursday, March 05, 2015 - 09:42 am:

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Tilak:

Bump for critics and cynics ..

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Posted on Thursday, March 05, 2015 - 06:41 am:

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quote:

A new bank announced in the annual budget last week could boost loans and cut borrowing costs for India’s cash-starved small businesses -- tailors, mechanics and phone booth operators who account for around a fifth of the economy.

MUDRA bank - to be set up with $3.2 billion of capital to help microfinancing firms to lend more - should help leverage up firms which account for 40 percent of India's exports, just as India tries to rekindle growth, lenders and entrepreneurs say.

India's small businesses employ more than 106 million workers, according to government statistics, in a country that brings a million new workers into the workforce every month.

Yet according to government estimates, only 4 percent of 57.7 million small business units in India have access to institutional finance, leaving many to rely on informal lenders.

Industry experts estimate that demand for loans from the sector outstrips supply by more than $80 billion.

Rating agency Crisil estimates that microfinance lenders have loan assets totalling $5.6 billion. But they have had a limited impact on small businesses as they primarily target lending to individuals or groups of individuals among the poor.

Even for the microfinance institutions that would like to lend more to businesses, rules cap the amount they can lend to a single borrower at Rs 50,000 rupees ($803), making them an unviable option for many businesses.

"The micro and small enterprises have been starved of credit," said Alok Prasad, chief executive of Microfinance Institutions Network (MFIN), a regulatory body for the sector.

Loans between Rs 50,000 and a million rupees from formal lenders are "almost completely unavailable", Prasad said, adding that the Reserve Bank of India had been asked to raise the cap on microfinance loans and a decision was expected soon.

Mumbai entrepreneur Vipul Vora chased more than a dozen banks for two-and-a-half years before a lender finally agreed to give him a 10-million-rupee ($161,708) loan to set up a plant to produce jaggery, a traditional sweetener, in western India.

"It is absolutely difficult," said Vora, 55, who is starting a new business after closing down an earlier venture five years ago.

"I must have printed about 25,000 pages (of paperwork)... Some banks asked for eight times that amount as collateral."

Small businesses say mainstream banks often ask them for excessive collateral. Banks, particularly dominant state lenders who are already under pressure over bad loans, have largely held back from lending to a sector where debt repayment installments can often be less than the cost of pursuing the payment.

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Posted on Thursday, March 05, 2015 - 03:48 am:

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Bluelagoon:

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Posted on Thursday, March 05, 2015 - 02:53 am:

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quote:

NEW DELHI: Knowingly inflating the value of exports and imports may no longer earn just a light rap on the knuckles for those involved. This favoured ploy to salt away a little extra cash overseas or bring it back into the country, without the taxman catching on, could be punished by up to seven years in jail and heavier fines than before.

That's because the Narendra Modi government — which is determined to root out black money and penalize those who seek to conceal income — introduced a clause in the Feb 28 Budget that will make certain offences that have thus far been covered by the Customs Act punishable by the more stringent Prevention of Money Laundering Act (PMLA) as well. The aim is to curb the flow of black money to and from tax havens using legitimate trade channels by inflating export or import value.

The government is putting in place an extensive framework to detect black money, as outlined in the budget, especially that are held as assets abroad. Toward this end, it's keen to prevent the misuse of legitimate routes to convert black money to white.

"We have tried to plug the route of trade-based money laundering," a finance ministry official told ET. "The black money package is extensive." Clause 177 of the Finance Bill proposes to club all offences under Section 132 of the Customs Act such as false declarations, false documentation and so on additionally as offences under the money laundering law.

Section 132 offences are punishable with imprisonment for as much as two years, a fine or both under the Customs Act. Under PMLA, the jail term could be as much as seven years while the fines are higher as well. These changes will apply not just to traders but their intermediaries as well.

With illegal channels such as hawala coming under close scrutiny, the physical transfer of currency has become difficult and the premium charged for such methods has risen to as much as 5%. That's why black money is being increasingly routed through trade channels, officials and experts said.

Officials said a rampant practice is the transfer of funds overseas through banking channels by importing goods at inflated prices and round-tripping the money using a complicated web of overseas companies in multiple tax havens to escape the vigil of the intelligence agencies.

Diamonds, Carpets Diamonds, capital goods and even carpets are being used in this exercise. Some days ago, the government seized a large consignment of supposedly expensive hand-woven carpets being exported, valued at a few thousands of crores of rupees. They turned out to be quilts worth far less. This was not an isolated episode, officials said.

A few months ago, Mumbai customs authorities discovered that funds were being remitted overseas through banking channels on the basis of multiple bills of entry — the documents that give details of the actual shipment. Those involved had managed to transfer funds using a legitimate import transaction as a front. Such funds are then brought back as white money in the form of investments or in lieu of payments for exports.

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