Five Ways Indians Will Convert Their Black Money Into White

There’s no way Indians are parting with their black money without a fight.

Indians may have found new ways of beating the Centre’s demonetisation drive (Photo Courtesy: The Quint)

Prime Minister Narendra Modi claims his demonetization policy is giving sleepless nights to the rich. But a look at the serpentine queues outside banks indicates that’s not the case.

We Indians are known for ‘jugaad’. And where there’s a will to convert black money into white without paying penalty, there’s always a way.


Here are five ways Indians will convert their black money into white.

1. Ram ka Naam

There already are reports of people submitting their black money into donation boxes in temples. The temple management can show this as anonymous donations, exchange it for new currency notes, keep a commission and return most of it to the owner.

2. Find a Money Mule

Black money hoarders are reportedly using their staff and relatives to stash Rs 2.5 lakh in their accounts. Since the government has said it will not investigate deposits less than Rs 2.5 lakh, this is a relatively easy way to convert black money into white. It is perhaps because of these black money mules that Jan Dhan accounts have seen a sharp rise in deposits.


3. Note Mafia

Middlemen are reportedly accepting Rs 500 and Rs 1000 notes and giving back Rs 100 notes. This is done on the basis of a 15% to 35% cut, which is a lot less than the 200% penalty proposed by the government.


4. Advance Salaries

We’ve heard of businessmen in Gujarat and in other parts paying advance salaries for three to eight months using old Rs 500 and Rs 1000 notes. Some employees have reportedly opened salary account for their employees, deposited advance salaries, but withheld their chequebooks and debit cards.


5. Using Farmers

Since agricultural income is not taxed, farmers can easily submit money on behalf of black money hoarders. The farmer can simply claim it was income earned from selling produce before demonetization.

And so, after a roll in the hay, black money can turn white. 


Video Editor: Sunil Goswami

Cameraperson: Sanjay Deb