 "Black money: RBI to share FDI-related information with IB, RAW")
The Reserve Bank of India will share Foreign Direct Investment-related information with the Intelligence Bureau (IB) and Research and Analysis Wing (RAW), to check unaccounted money from entering the country.
The decision was taken during a recent meeting of a government group, headed by the revenue secretary, to check economic crime. The move comes after the cabinet secretariat expressed concern over companies in tax havens investing in the country, official sources said.
The cabinet secretariat suggested the Central Economic Intelligence Bureau maintain a database of such entities and investments, a move which was later rejected, they said. During the meeting of “the Working Group on Intelligence Apparatus”, representatives of IB felt it is important to have the information. It was decided that RBI should share with IB and cabinet secretariat, information on FDI which actually enters the country, the sources said.
The moves assumes significance as the government expects rise in FDI inflow to the country owing to its attempts to liberalise trade and promote ease of doing business.
The FDI comes either through automatic route (which gets recorded by RBI) or through Foreign Investment Promotion Board (FIPB)--an inter-ministerial body under the Department of Economic Affairs, which is responsible for processing of FDI proposals and making recommendations for government approval.
The decision was taken during a recent meeting of a government group, headed by the revenue secretary, to check economic crime. The move comes after the cabinet secretariat expressed concern over companies in tax havens investing in the country, official sources said.
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The cabinet secretariat suggested the Central Economic Intelligence Bureau maintain a database of such entities and investments, a move which was later rejected, they said. During the meeting of “the Working Group on Intelligence Apparatus”, representatives of IB felt it is important to have the information. It was decided that RBI should share with IB and cabinet secretariat, information on FDI which actually enters the country, the sources said.
The moves assumes significance as the government expects rise in FDI inflow to the country owing to its attempts to liberalise trade and promote ease of doing business.
The FDI comes either through automatic route (which gets recorded by RBI) or through Foreign Investment Promotion Board (FIPB)--an inter-ministerial body under the Department of Economic Affairs, which is responsible for processing of FDI proposals and making recommendations for government approval.