FAQ's: Pensioners banking nightmares addressed

Scheme for Payment of Pension to Government Pensioners by Authorised Banks
Reserve Bank of India (the Bank) monitors disbursement of pension by its agency banks in respect of all Central Government Departments (except the Department of Post) and certain State Governments. It has been receiving several queries/ complaints from pensioners in regard to fixation, calculation and payment of pension including revision of pension/ Dearness Relief from time to time, transfer of pension account from one bank branch to another, etc. We have analysed the queries/ complaints, rights and duties of pensioners and put the same in the form of answers to these Frequently Asked Questions. It is hoped that these will cover most of the queries/ doubts in the minds of pensioners.
Payment of Pension to Government Pensioners
Related
Master Circular- Disbursement of Pension by Agency Banks

RBI orders to Banks for delay in Pension Payments

Dear Veterans,
I wish to bring to your notice to the various circulars issued by the RBi regarding payment of pension by the banks. i would like to draw your attention particularly to the clause whereby you are entitled for bank rate plus 2% for all delayed payments by the the banks of your dues. You may like to visit this web site and update yourself on the matter. http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/98MCP010711F.pdf
Pension Payment to Central/ State Govt. Pensioners by Agency Banks-Delay
(Ref.DO.No.CSD.CO/8793/13.01.001/2009-10 dated April 09, 2010, DGBA.GAD.No.H- 46/45.01.001/2010-11 dated July 2, 2010 and DGBA.GAD.No.H- 6212 & 6213/45.01.001/2010-11 dated March 11, 2011)- click here
Reserve Bank of India is receiving several complaints from the pensioners alleging inordinate delay in disbursing the revised pension and arrears. Position was reviewed by RBI and the agency banks have been instructed as under:

Pension paying banks should compensate the pensioner for the delay in crediting the pension/ arrears thereof by paying compensation at Bank Rate plus 2% penal interest for the delay after the due date and the compensation shall be credited to the pensioner's account automatically without any claim from the pensioner on the same day when the bank affords credit for revised pension/ pension arrears, in respect of all delayed pension payments made since October 1, 2008.

Pension paying banks have been requested to put in place a mechanism to obtain immediately the copies of pension orders from the pension paying authorities directly and make payments without waiting for receipt of instructions from RBI so that pensioners should 28
get the benefits announced by the Governments in the succeeding month's pension payment itself.

System of attending to customer service including pension payments may be reviewed.

The branch continues to be a point of referral for the pensioner lest he/she feel disenfranchised.

All branches having pension accounts should guide and assist the pensioners in all their dealings with the bank

Suitable arrangements are made to place the arithmetic and other
details about the pension calculations on the web, to be made
available to the pensioners through the net or at the branches at
periodic interval as may be necessary and sufficient
advertisement is made about such arrangements

All claims for agency commission in respect of pension payments
must be accompanied by a certificate from E.D. / CGM- in-
Charge of Government business in case of SBI and its Associate
Banks that there are no pension arrears to be credited /delays in
crediting regular pension / arrears thereof.
Veteran Raman

RBI cracks the whip on erring banks who delay Pension Payments

My Dear Pensioners Friends,
Appended below is a letter written by RBI to all banks on Payment of Pension, use this if required, since certralised pension payment is normally delayed. MM

RBI ON PENSION PAYMENT- Interesting letter from RBI
The bank is paid Rs 60.00 per month to credit your pension every month- thus 60x12 = Rs 720.00 per year is the earning by the bank to pay you pension. I suppose arrears crediting must be over and above this. So no bank is doing you a favour. The circular below says they should pay you 2% interest if there is delay. Claim it !!
RBI clamps down on banks delaying pension payout
April 22, 2010 08:07 PM | Sucheta Dalal with Sanket Dhanorkar

Central bank wakes up to inordinate delays in payments faced by government pensioners; reprimands bankers and directs them to make good the dues immediately, along with penal interest

In what could be a major victory for government pensioners awaiting pension payments, the country’s central bank, the Reserve Bank of India (RBI), has taken bankers to task for ‘inordinate delays’ in disbursing revised pension and arrears.

Taking a serious view of the matter, the RBI has issued a circular (dated 9 April 2010) to various banks with an exasperated tone, directing the concerned banks to ensure that all entitled pensioners are paid their revised pension or arrears within 15 days from receipt of the circular. Additionally, it has also advised the banks to make a penal interest payment of 2% for any delay beyond the due date.

The RBI was forced to take this tough stand after receiving several complaints from pensioners, especially State government pensioners, alleging inordinate delay in disbursing the revised pension and arrears. Under the 6th Pay Commission recommendations, RBI had advised pension-paying banks to put in place a suitable mechanism so that pensioners could get the benefits announced by the government in the succeeding month’s pension payment itself. The controlling offices or head offices of agency banks were also advised to closely monitor and supervise the timely and accurate disbursement of pension to the pensioners.

An RBI review of the pension payment systems in various agency banks revealed the true story behind the picture. The circular highlights RBI’s findings as follows:
“Even though Pension Relief Orders were issued by the respective State Governments, there is inordinate delay ranging from one month to 18 months at the Agency Bank level in disbursing the revised pension as also the pension arrears. The delay was more pronounced in the case of those State Govt pensioners residing outside their States drawing pension from Agency Bank branches. To be specific, non-State resident pensioners have not received adequate attention and timely receipt of the revised pension/arrears for months together.”

The circular goes on to highlight the discrepancies of banks in administering the pension payouts. “Our experience was that customer service on pension payment matters was not effective at the branch level where customers normally interface with the front office,” said the central bank’s communiqué.

The RBI also makes note of the lack of coordination between the branches and the Central Pension Processing Centres, as also the absence of transparency in the calculation of the revised pension or arrears.

In a tone that is vividly indignant, the RBI questions the concerned banks’ indiscretions. “Pension payment is an agency function entrusted to you for a commission @ Rs60 per transaction and an amount of Rs487 crore has been paid to Agency Banks on account of pension disbursements alone during the year 2008-09. Although this is a significant income generating activity, it appears that it is still not given the due importance that it deserves.”

In view of the above, the RBI has advised banks to undertake review of the system of attending to customer service and have a pension accounts guide at all branches to assist the pensioners in all their dealings with the bank. Additionally, RBI has demanded that suitable arrangements be made, to place on the bank website details about the pension calculations, and made available to the pensioners at periodic intervals with sufficient advertisements to that effect.

With the RBI finally wisening up to the reality and putting its foot down squarely on the Agency banks, they will have to take a deeper look at their archaic systems and make life easier for pensioners. As the RBI rightly puts it, “Pension is the lifeline of the pensioners and any delay in affording their legitimate dues will rob them of the dignity of life to which they are entitled to”.

Pension Slips to Defence Personnel

Is this true?
Relevant portion of RBI circular regarding issue of pension slip by Banks is reproduced below for your information. Please ensure you get these every month. This is separate from Annexure IV.
Para 20: Disbursement of Central Government Pension through Public Sector Banks-Issue of Pension Slips to Defence Pensioners: Master Circular- Disbursement of Pension by Agency Banks(Ref. DGBA.GAD. H-17663/45.05.031/ 2006-07 dated June 12, 2007)

It has been decided in consultation with the Office of Chief Controller of Defence Accounts and the Department of Ex-Servicemen welfare, Ministry of Defence to issue pension slip to Armed Forces Personnel/ Defence Civilian pensioners including family pensioners on par with the existing system as applicable to Central Government Pensioners (Civil). All the agency banks were advised to issue suitable instructions to their pension paying branches.
Deepak Verma, Veteran

Important RBI circulars

Master Circular- Disbursement of Pension by Agency Banks

Collection of account payee cheque – Prohibition on crediting proceeds to third party account

Grievance Redressal Mechanism - Display of Contact Details of Officials

GUARANTEES, CO-ACCEPTANCES & LETTERS OF CREDIT

Reconciliation of transactions at ATMs failure – Time limit

IESM: Stupendous Service rendered by Pension Cell

Date: Thursday, 24 September, 2009, 5:14 PM
Dear Adm Barin,
This is real 'sharp' and smart follow up, indeed. I am most impressed and grateful. Have seen Gp Capt Phatak's outstanding contributions earlier also on the IESM blog. He is ever so positive, prompt and dedicated. My compliments and grateful thanks to him also.
We shall fall back on his support and expertise, as advised/ required. Having invoked your intervention, Barin, I was confident that we will get somewhere.
Thanks again.
Warm regards
Gen Yogi Sharma
Lt Gen YN Sharma, Former Army Commander

Date: Thursday, 24 September, 2009, 6:07 PM
Dear All,
I visited my bank located at Shankarshet Road, Pune on invitation by the Branch Manager to check whether the arrears chart received from HO of Bank of Maharashtra is correct. It was to my surprise (horror) that I found that in cases of 7 defence pensioners at my branch, BOM HO has once again made a mistake by authorising 60% arrears on the basis of GOI letter dated 1 Sep 08 which was issued for civilian pensioners and not for Armed Forces. Earlier BOM had made similar mistake while paying initial instalment of arrears and I had promptly brought this to their notice. This is obviously universal mistake committed in all cases of Armed Forces pensioners getting pension through BOM in a typical EDP environment. I am visiting HO of BOM tomorrow to get this rectified immediately. In the meantime I have asked my bank to credit whatever is authorised as interim payment.
This is to be published widely because many Officers/widows/PBORs will be affected at the hands of BOM.
Gp Capt SS Phatak(retd)
(Keep the up the good work Gp Capt Pathak of IESM Pension Cell. We all are proud of you - Chander Kamboj)

Date: Tuesday, 22 September, 2009, 9:44 PM
Dear Sir,
I visited Central Pension Processing Cell(CPPC) of SBI this morning, located in Tower2, 6th Floor at CBD Belapur Rly station complex, dealing with the cases from Maharashtra and GOA. It is headed by Mrs Tanuja Indi as Chief Manager and assisted by AGM Mr Bhosale and other staff of 25 officers and junior staff. The procedure followed by CPPC is as follows:-

Mail is received by the dak clerk

It is divided in two lots (a)for unactioned PPOs, (b)Corr PPOs.

All letters then are handed over to 6 officers designated for each type depending on work load.

Each junior officer scrutinises each letter and then internal payment proforma is raised calculating fixation of pension and arrears thereon upto 31 Aug 08.

Once authorised by respective six officers, data is fed to computer (core banking) and amount credited.

Post 01 Sep 08 arrears are then calculated automatically which amounts to release of 60% authorised now.

While talking to Mrs Indi she insisted that she acts upon any GOI/PCDA letters if received from her HO and not from other agencies like ours. While talking to few officers I found that they are not aware of the concept of pro- rata pension when quilifying service is less than 33 years. The confusion about TS and S still remains in respect of Lt Cols and equivalent ranks. PPOs issued by DCDA (AF) are defective to that extent.

Following basic documents are a must from pension coming through his pension paying branch(PDA):-

Copy of PPO fixing pension as on 1 Jan 1996

Proof of qualifying service- ie date of commision and date of retirement

proof of age for additional pension,if applicable

Pension account no

Branch code and address.

If everything is in order credit is given instantaneously by feeding relevant data and cross checked for correctness. I had carried about 12 cases and except for one all other cases credit was given immediately. In short, attested documentary evidence for every claim is very essential. I returned this evening fully satisfied and conveyed to each one of them their respective arrears figures.
regards,
Gp Capt SS Phatak (Retd), Pension Cell IESM

IESM: Readers inputs and responses

Inadequate Compensation
Date: Saturday, 12 September, 2009, 5:05 PM
Dear All,
One of the Delhi based Channel have undertaken the task of relaying stories of those families of martyrs who did not receive adequate compensation from the Government on the lines of Kargil martyrs. Basically soldiers who died while fighting terrorist during period from 2001 to 2009.
We request all to intimate details of any such known case or cases.
Regards,
Brig Nawab Singh (Retd)

Abnormal Pension Disparity
Dear Friends,
May I request those of you who retired in Oct- Dec 2005 and those who retired in Jan- Mar 2006 to kindly send me (cc to Maj Gen Surjit Singh) a scanned copy of your PPOs. Ask your friends to send, if necessary. We need PPOs from officers of each rank to build a case for non- application of mind in awarding pensions (post 6 CPC). If you cannot scan and send, please post it to me.
Help us to help yourselves.
Visit www.iesm.org for information on veterans' issues.
Best regards,
Maj Gen (Retd) PK Renjen, AVSM

Pension Red- Tape
I had invited two serving bank officials to RSI Bangalore as a token of my appreciation for the outstanding work they had done/ doing for ESM's 6 PCP implementation.
It was a very fruitful meeting & I came to know the startling news that RBI pays Rs45/ per transaction to the banks for pension credit i.e. a total of 9 crores (assuming the total ESM population as 20 lakhs) is paid by the RBI to banks every month & this alone amounts to 108 crores every year. Imagine having own IESM bank to take care of the transactions. Just imagine what we can do for ESM even if we get a fraction of this amount even Re 1/ per transaction.
Another sad fact that came to light again was about widows whose pension has not been revised since long. He quoted the name of one Mrs Thangammal (from Bangalore) wife of a sqn ldr who died in 1956 (the year I was born) & her pension has not been revised since 1956. She is 92 now & her dues amount to 24 lakhs. In spite of his best efforts he has not been able to get her the pension due to red tapism all over (including AF records office).

He will be providing her details to me next week & then I will request the IESM Pension cell to take up her case (if I am not able to solve it).
When we dig into a case we find all kinds of unexpected issues. This creates real agony for the widow (what I would call as a double whammy -death of loved one & reduced pension payment)
This only illustrates that we need to have a parallel org with CDA(P) on a PPP model to manage the pension issue. It should have a software development team & a data maintenance team along with a call center to address all issues of ESM pension on a pro active manner (& not a reactive manner). People may say that this the job of the CDA(P). Since we have to live with realities & we cannot change the work culture of a govt org we have no choice but to under take this mission. In the bargain we will obtain the ESM's data also which will facilitate unity of ESM (though we will be bound by some govt regulations also)
He also told me that 60 % arrears are expected on 22 Sep 2009 (to keep their names confidential I am not revealing the bank name).
Col VT Venkatesh (Retd)

IESM: Pension FAQs

Date: Friday, 21 August, 2009, 10:11 PM
Dear Colleagues,
Some FAQs relating to pension are given below for general information:
1. Can the pensioner draw his/ her pension through a bank branch?
Yes. Even the Government employees earlier drawing their pension from a treasury or from a post office will have the option to draw their pension from the authorized bank's branches.

2. Who is the pension sanctioning authority?
The Ministry/ Department /Office where the Government servant last served is the pension sanctioning authority. The pension fixation is made by such authority for the first time and thereafter the refixation of pay, if any, is done by the pension paying bank based on the instructions from the Central/ State Government authorities.

3. Is it necessary for the pensioner to open a separate pension account for the purpose of crediting his/ her pension in authorized bank?
The pensioner is not required to open a separate pension account. The pension can be credited to his or her existing savings/ current account maintained with the branch selected by the pensioner.

4. Can a pensioner open a Joint Account with his/ her spouse?
Yes. All Central Government Pensioners (except the pensioners of the Telecom Department) and those State Governments which have accepted such arrangement can open Joint Account with their spouses.

5. Whether Joint Account of the pensioner with spouse can be operated either by ''Former or Survivor" or " Either or Survivor".
The Joint Account of the pensioner with spouse can be operated either by ''Former or Survivor" or "Either or Survivor".

6. What is the minimum balance required to be maintained in the pension account maintained with the banks?
RBI has not stipulated any minimum balance to be maintained in pension accounts by the pensioners. Individual banks have framed their own rules in this regard. However, some of the banks have also permitted zero balance in the pensioners' accounts.

7. Who sends the Pension Payment Orders (PPOs) to the authorized bank branch?
The concerned pension paying authorities in the Ministries /Departments/ State Governments forward the PPOs to the bank branches wherefrom the pensioner desires to draw his/her pension.

8. When is the pension credited to the pensioner's account by the paying branch?
The disbursement of pension by paying branch is spread over the last four working days of the month depending on the convenience of the pension paying branch except for the month of March when the pension is credited on or after the first working day of April.

9. Can a pensioner transfer his/ her pension account from one branch to another branch of the same bank or to the branch of another bank?
(a) Pensioner can transfer his/ her pension account from one branch to another branch of the same bank within the same centre or at a different centre;
(b) He/ She can transfer his/ her account from one authorized bank to another within the same centre (such transfers to be allowed only once in a year);
(c) He/ She can also transfer his/ her account from one authorized bank to another authorized bank at different centre.

10. What is the procedure for payment of pension in the case of the transfer of PPO to another branch or bank, as the case may be?
Pension will be paid on the basis of the photocopy of the pensioner's PPO at the transferee (new) branch from the date of the last date of payment made at the transferor (old) branch. During this time, both the branches (old and new) are required to ensure that all the required documents are received by the transferee branch within the period of three months.

11. Is it necessary for the pensioner to be present at the branch of the bank along with documents for the purpose of identification before commencement of pension?
Yes. Before the commencement of pension, a pensioner has to be present at the paying branch for the purpose of identification. The paying branch shall obtain the specimen signatures or the thumb/toe impression from the pensioner.

12. What is the procedure to be followed by the bank branch if the pensioner is handicapped /incapacitated and is not in a position to be present at the paying branch?
If the pensioner is physically handicapped/incapacitated and unable to present at the branch, the requirement of personal appearance is waived. In such cases the bank official visits the pensioner's residence/hospital for the purpose of identification and obtaining specimen signature or thumb/toe impression.

13. Has the pensioner got right to retain half portion of the PPO for record and to get it updated from paying branch whenever there is a change in the quantum of pension due to revision in basic pension, dearness relief, etc.?
Yes. The pensioner has right to retain half portion of the PPO for record and whenever there is a revision in the basic pension/DR etc. the paying branch has to call for the pensioner's half of the PPO and record thereon the changes according to government orders/notifications and return the same to the pensioner.

14. Whether the paying branch has to maintain a detailed record of pension payments made by it in the prescribed form?
Yes. The pension paying branch is required to maintain a detailed record of pension payments made by it from time to time in the prescribed form duly authenticated by the authorized officer.

15. Can the pension paying bank recover the excess amount credited to the pensioner's account?
Yes. The paying branch before commencement of pension obtains an undertaking from the pensioner in the prescribed form for this purpose and therefore, can recover the excess payment made to the pensioner's account due to delay in receipt of any material information or due to any bonafide error. The bank has also right to recover the excess amount of pension credited to the deceased pensioner's account from his/ her legal heirs/nominees.

16. Is it compulsory for a pensioner to furnish a Life Certificate/Non-Employment Certificate or Employment Certificate to the bank in the month of November?
Yes. The pensioner is required to furnish a Life Certificate/Non – Employment Certificate or Employment Certificate to the bank in the month of November. However, in case a pensioner is unable to obtain a Life Certificate from an authorized bank officer on account of serious illness / incapacitation, bank official will visit his/her residence/ hospital for the purpose of recording the life certificate.

17. Can a pensioner be allowed to operate his/ her account by the holder of Power of Attorney?
The account is not allowed to be operated by a holder of Power of Attorney. However, the cheque book facility and acceptance of standing instructions for transfer of funds from the account is permissible.

18. Who is responsible for deduction of Income Tax at source from pension payment?
The pension paying bank is responsible for deduction of Income Tax from pension amount in accordance with the rates prescribed by the Income Tax authorities from time to time. While deducting such tax from the pension amount, the paying bank will also allow deductions on account of relief to the pensioner available under the Income Tax Act. The paying branch will also issue to the pensioner in April each year a certificate of tax deduction as per the prescribed form. If the pensioner is not liable to pay Income Tax, he should furnish to the pension paying branch, a declaration to that effect in the prescribed form (15 H).

19. Can old, sick physically handicapped pensioner who is unable to sign, open pension account or withdraw his/ her pension from the pension account?
A pensioner, who is old, sick or lost both his / her hands and, therefore, can not sign, can put any mark or thumb/ toe impression on the form for opening of pension account. While withdrawing the pension amount he/ she can put thumb/toe impression on the cheque/withdrawal form and it should be identified by two independent witnesses known to the bank one of whom should be a bank official.

20. Can a pensioner withdraw pension from his/ her account when he/ she is not able to sign or put thumb/toe impression or unable to be present in the bank?
In such cases, a pensioner can put any mark or impression on the cheque/ withdrawal form and may indicate to the bank as to who would withdraw pension amount from the bank on the basis of cheque / withdrawal form. Such a person should be identified by two independent witnesses. The person who is actually drawing the money from the bank should be asked to furnish his/ her specimen signature to the bank.

21. When does the family pension commence?
The family pension commences after the death of the pensioner. The family pension is payable to the person indicated in the PPO on receipt of a death certificate and application from the nominee.

22. How the payment of Dearness Relief at revised rate is to be paid to the pensioners?
Whenever any additional relief on pension/family pension is sanctioned by the Government, the same is intimated to the agency banks for issuing suitable instructions to their pension paying branches for payment of relief at the revised rates to the pensioners without any delay. The orders issued by Govt. Departments are also hosted on their websites and banks have been advised to watch the latest instructions on the website and act accordingly without waiting for any further orders from RBI in this regard.

23. Can pensioners get pension slips?
Yes. As decided by the Central Government (Civil, Defence & Railways), pension paying banks have been advised to issue pension slips to the pensioners in prescribed form when the pension is paid for the first time and thereafter whenever there is a change in quantum of pension due to revision in basic pension or revision in Dearness Relief.

24. Which authority the pensioner should approach for redressal of his/ her grievances?
A pensioner can initially approach the concerned Branch Manager and, thereafter, the Head Office of the concerned bank for redressal of his/her complaint. They can also approach the Banking Ombudsman of the concerned State in terms of Banking Ombudsman Scheme 2006 of the Reserve Bank of India (details available at the Bank's website RBI: click here). This is applicable only in respect of complaints relating to services rendered by banks. For other issues the complainant will have to approach the respective pension paying authority.

25. Where can a pensioner get information about the changes in the pension/ Dearness Relief or any pension related issue?
The pensioner can visit the Official Website of the concerned Government Department as also Reserve Bank of India Website (www.rbi.org.in) to get the information about pension related issues.

Best regards,
Lt Gen (Emeritus) Raj Kadyan, PVSM, AVSM, VSM
Chairman IESM

Terrorism is related to hawala transanctions and black money

WASHINGTON: Cautioning that the 'hawala' money in India is directly linked to terrorist financing, the US has suggested to New Delhi to strengthen its anti- money laundering and counter terrorism- finance legislation's.

It also recommended that New Delhi should work towards becoming a full-fledged member of Financial Action Task Force (FATF), an inter- governmental body for development of policies to combat money laundering and terrorist financing.

While noting that the Indian Parliament passed the Prevention of Money Laundering (Amendment) Bill, early this week, a US State Department report has suggested that India should make necessary legislative amendments to bring its anti money laundering and counter terrorism finance regime in conformity to FATF.

"Given the number of terrorist attacks in India and the fact that in India hawala is directly linked to terrorist financing, India should prioritise cooperation with international initiatives that provide increased transparency in alternative remittance systems," said the report in its section on India related to money laundering.

The report, released by Assistant US Secretary of State for International Narcotics and Law Enforcement Affairs, David T Johnson, quoted RBI estimates that remittances to India sent through legal, formal channels in 2007-2008 amounted to USD 42.6 billion.

According to Indian observers, the report said funds transferred through the billion dollar hawala market are equal to between 30 to 40 per cent of the formal market.

"In that case the hawala market could amount to between USD 13 billion to USD 17 billion," the report on International Narcotics Control Strategy, said.

Given the large number of expatriates, India continues to retain its position as the leading recipient of remittances, according to the World Bank.

India's strict foreign-exchange laws and transaction reporting requirements, combined with banking industry's due diligence policy, makes it difficult for criminals to use formal channels to launder money, the report said.

However, large portions of illegal proceeds are often laundered through "hawala" or "hundi" networks or other informal money transfer systems.

The report appreciated the steps taken by India post 9/11 with regard to money laundering and its possible use by terrorist network. However, several key steps are still required to be taken by New Delhi, it felt.

Listing out the steps New Delhi still needs to take, the report said India should become a party to the UN Conventions against Transnational Organized Crime and Corruption.

"Also, India should pass the Foreign Contribution Regulation Bill for regulating nongovernmental organisations including charities," it said.

"India should devote more law enforcement and customs resources to curb abuses in the diamond trade. It should also consider the establishment of a Trade Transparency Unit (TTU) that promotes trade transparency; in India, trade is the back door to underground financial systems," the report said.

The hawala system can provide the same remittance service as a bank with little or no documentation, at lower rates and with faster delivery, while providing anonymity and security for its customers, the report said.

According to the report, while most money laundering in India aims to facilitate widespread tax avoidance, criminal activity contributes substantially. Some common sources of illegal proceeds in India are narcotics trafficking, illegal trade in endangered wildlife, trade in illegal gems (particularly diamonds), smuggling, trafficking in persons, corruption, and income tax evasion, it said.
Hawala money in India linked to terror funding: US

Related reading:
Black Money In Swiss Bank: Swiss Banking Association report 2006
Black money in Swiss banks people's money : Advani
Campaign to unearth black money in Swiss banks
LS polls to cost more than US prez poll

When the crusade of the West against Swiss banks is succeeding, here Dr Manmohan Singh and his government, instead of celebrating, seem to be worried at their success. Three bits of evidence expose the Congress-led government’s not-so-well-hidden worry. First, when Germany’s finance ministry offered the LTG bank secret data to any country that needed it, the government would not ask for it despite reports that it contained some 100 Indian names. When in April last year, L K Advani wrote to Manmohan, requesting to him to ask Germany for the data, the then finance minister responded evasively. Transparency International noted India’s “stoic silence over the issue” and that it “has not approached the German government for the data’’ (Economic Times, May 25 2008). More, the revenue secretary in Delhi has reportedly advised the Indian ambassador in Berlin not to push Germany for the details as Germany might not like it– clear proof that the government is scuttling, not getting, the details.
A deafening silence on funny money

Comment: "Cash for Votes" is financed from Hawala money transactions. The Government is handicapped and powerless at the might of Hawala and Black money operators/ perpetrators. The Income Tax Department, Home Ministry and RBI are mute spectators and really are extensions of government committing fraud on honest citizens!