Frauds and Malpractices in Demonetization

Below are the key inputs from you on what are the various frauds and malpractices taking place in the
500/1000 currency demonetization. Kindly review and share solutions that can help address these.

One important solution announced today is use of indelible ink. Kindly share solutions for all listed below.

We look forward to your inputs!
Transparency International India

Frauds and malpractices in 500 and 1000 currency demonetization

1. Banks are exchanging currency for their preferred account holders on priority without them needing to stand in queues
2. Shopkeepers are accepting old notes and raising pre-dated bills against them
3. Jewellers are selling gold in almost double the rate and accepting 500/1000 notes
4. Businessmen are forcing their employees to exchange Rs. 4000 for them everyday
5. Shopkeepers are paying their staff entire year’s salary in advance as cash
6. Money is being transferred to the employee’s account and he is then being asked to withdraw cash and return the money to the employer
7. People are depositing 2.5L cash in the accounts of each of their relatives and friends to convert their black to white
8. People are accepting Rs. 1000 notes and offering Rs. 800 in exchange
9. Bulk black money hoarders like builders and contractors have engaged labourers at Rs. 500 per day and each one exchanging Rs. 4000
10. Traders are clearing their debts and forcibly paying in cash
11. Unsigned PAN and ID proof copies are photocopied several times and are being used to exchange cash
12. Politicians with large amount of black money are offering loans of up to Rs 10 Lakhs per person through Rs 500/1000 denomination notes
13. State Electricity Board Officials are asking for Rs. 2000 bribe when trying to make a Rs. 30,000 payment with Rs. 500/1000 notes
14. There are reports of people giving their black money to temple 'hundis' or donation boxes. Temple managements will show this money as anonymous donations, exchange it for new currency notes, keep a commission for this service, and return most of it to the owner
15. Co-operative banks and credit societies are issuing back-dated FDs in exchange for old currency
16. Since old notes are being accepted till 14 November to book train tickets, there has been a surge in booking expensive train tickets that people intend to later cancel and get refunds in new notes, with a small cancellation fee
17. Since agricultural income is not taxed, a farmer can easily say he got this much cash from the mandi by selling his produce before demonetisation, and here's the old currency, now please exchange it for new one
18. Agents are contacting mobile shops to get copies of ID proofs and then using them to get cash exchanged from banks. more