Black Money Current Affairs - 2020

NPL scientists develop ink to stop fake passports and currency notes

The Council of Scientific and Industrial Research (CSIR) and National Physical Laboratory (NPL) developed an ink to combat the problem of fake printing of passports and counterfeiting of currency notes. The ink has a new security feature o protecting itself against duplicity

Key facts of the discovery

The ink was produced based on single excitable dual emissive luminescent pigment. It was developed based on the concept of fluorescence and phosphorescence phenomena. Currently, the currency notes display only one color with the emission of wavelength. However, in the ink developed by the scientists features changes in pigment color after the notes are printed.

In ambient light the ink shows white color. When the ink is exposed to UV light, it turns red and when the UV source is switched OFF it turns green.

Why the new ink?

According to the annual report of RBI (2018-19), the risk of duplication of Rs 500 and Rs 2000 notes are higher. The report says that recently launched 500 rupees notes are accounted to 121% of duplication and Rs 2000 notes are accounted to 21.9% duplication.

Fluorescence and Phosphorescence

Both in phosphorescence and fluorescence the radiation is electromagnetic and is spontaneous.

In case of fluorescence, the radiation stops after the source is switched off. On the other hand, in phosphorescence, the glow continues for few hours.

India gets first tranche of Swiss account details

Under the new Automatic Information Exchange pact, India received its first tranche of Swiss Bank Account details. India hence is legally one among 75 countries with which the Switzerland Federal Tax Administration (SFTA) has exchanged information. The next exchange of information will take place in September 2020. This is because according to international agreement, the information exchange has to happen within nine months after the end of the calendar year. By which the next information exchange will take place by September 2020.

The SFTA said that it collected information from around 7,500 institutions. It has the largest exchange program with Germany of all other countries.

Automatic Information Exchange Pact

The pact was a major milestone in Indian Government’s fight against black money. The pact came into existence in 2017. The Swiss banks through the pact agreed to exchange information with countries abroad. The objective of the pact is to make tax evasion possible. The member countries OECD, G20 and other important financial centers were committed to implement the pact.

Working

According to the pact, the Swiss bank shares the information of the accounts to the domestic tax officials. They then share the information to the pact’s partner country.

Significance of the pact

The data received will help India establishing strong prosecuting cases against those who have unaccounted wealth. There are minimum of 100 cases that were closed before 2018 for which Swiss will now share details with India.

Concerns

It is believed that many Indians have closed their accounts after Swiss Government adopted the law due to international pressure. The details that are to be collected from Swiss Government includes mostly of business men who have now settled in South – East Asian, African, UK and other South American countries.