It is well known fact that Indian Politicians [90%] are Corrupt and have Unaccounted money also known as Black Money. This money is Invested by Bankers bypassing rules and regulations. There are ways to convert black money into white: invest in insurance, invest in gold, deposit the cash in bank’s account, split the cash in smaller chunks to avoid detection, open multiple accounts, and the likes. All these ways serve the purpose of the client well, fully covering the tracks so much so that government regulatory authorities would never get a whiff of such dubious transactions.
The modus operandi the bank officials are following is as highlighted below:
* Open an account to route the cash into the Bank’s spread of products including insurance;
* Put the cash in accounts other than bona fide, like dummy accounts;
* Use sundry accounts of the bank to deposit illegal cash and get the pay orders for investment;
* Do it even without PAN card;
* Use provisions like Form 60 to deposit the illegitimate cash into the account to route it into investment;
* Get Demand Drafts made for the client even from other banks to facilitate investment;
* Split the money to invest in diversified portfolio including gold;
* Allot lockers for safe keeping the illegitimate cash;
* Show the illegal cash as proceeds from some sham agreements of land sale;
* Use duplicate PAN cards to route the cash transactions into investment;
* Send money abroad through NRE/NRO accounts; transfer cash using accounts of customers, for a fee; use some shell company to transfer money abroad showing it as expenses toward business-cum-leisure trip; transfer money using TCDC cards.
The bankers would go out of their way to help you provided you have crores to show them, never mind if they have been earned by means other than legitimate, and they will help you make it legitimate, in a foolproof manner, taking advantages of certain loopholes of the system. For instance, they are using the provision of scrutiny of investments up to a period of 7 years to beat the system. Then there are provisions like Section 10-10(D) which come in handy to people invest black money and make it white.
All the Banking Laws apply to only Aam Aadmi Like you and me, while Politicians ans Bureaucrats Loot the Country and no laws are applicable to them.