Petrol Pumps, Airlines Will Not Take Old Notes From Saturday | DEMONETIZATION

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Old notes will no longer be accepted at petrol pumps and airline ticket counters starting from Saturday, according to sources.

So far, petrol pumps and airlines had been given an exemption from demonetization of 500 and 1000 rupee notes.

However, in an effort to control the widespread ‘whitening’ of black money, the government is gearing up to plug any remaining loopholes for criminal elements.

With this, only mobile recharge shops and some state governments will continue to accept old notes for payments.

WIDESPREAD MISUSE

Despite the government’s best efforts, a large chunk of illegal funds are being converted into new notes using various methods.

One of the most widespread is by way of small, and large, businesses.

Many businesses are, or were, collecting old notes with the intention of submitting them as business income at their banks.

A business that normally deposits cash of 10 lakhs a month could deposit an additional 5 lakhs without raising suspicion.

Similarly, companies and establishments are collecting outlawed currency and depositing it into their overdraft and current accounts.

Overdraft and current account deposits do not invite as much scrutiny as savings accounts, especially if the accounts were running on negative balance and the new deposits merely bring the balance back to zero.

Many Hawala operators are also helping people convert black money into new notes.

In addition, many salaried people are taking old currency from friends and acquaintances and depositing it in their bank accounts.

2016-12-01T10:46:23+00:00