Jaitley urges more cheque, plastic money use to check black money

Finance Minister Arun Jaitley on Friday called for more widespread use of cheques and "plastic" currency to tackle the scourge of black money.

"As the economy grows, there is a roadmap, and the roadmap is more and more people start discarding the use of currency and switch over to either cheques or plastic currency," he said at the foundation day celebrations of the Security Printing and Minting Corporation of India (SPMCIL).

Pointing out how countries like Britain and US have highest currency denominations in 50 pound and 100 dollar currency notes respectively to discouraging hoarding and use of unaccounted wealth, Jaitley said that "one of the objectives is to dis-incentivise the use of currency and incentivise the use of plastic currency or any other negotiable instrument which is available".

"Some steps have also been announced which make use of cash little difficult," he added.

In his first full budget presented last month, Jaitley has announced steps to deal with black money by disincentivising cash dealings in real estate and similar transactions.

He also proposed to amend the Income Tax Act to prohibit "acceptance or payment" of an advance of Rs.20,000 or more in cash for purchase of immovable property.

This is the fourth year in succession that state-run SPMCIL has paid 20 percent dividend, the finance ministry said in a statement here. The company's turnover now stands at Rs.3,798 crore.

SPMCIL produces bank notes, coins, medals and medallions, weights and measures as well as various security products like passports, travel documents, non-judicial stamp papers and

postal stationery.