No conclusion can be drawn on Panama Papers leak case yet: RBI
The Reserve Bank of India (RBI), which is probing Panama Papers leaks with other agencies, on Friday said no conclusion could be drawn yet if the offshore entities of Indians in Panama were illegal.
RBI Deputy Governor SS Mundra, however, said that some “unverified assumptions” from government indicate that entities of most of the Indians associated with the leaks were opened in Panama under RBI’s Liberalised Remittance Scheme (LRS) as per norms.
“It will be premature to arrive at any conclusion on the Panama Papers issue at this stage. At this moment, it will be wrong to think that all entities of Indians opened in Panama are illegal or none of these entities is not illegal,” Mundra said.
He said the probe into the Panama Paper leaks concerning Indian nationals has just begun. “The team will gather documents and investigate how black money was sent out of the country, if it is so, to set up entities in Panama,” the Deputy Governor said.
He was speaking on the sidelines of an event organised by Axis Bank.
“The prima facie unverified assumptions from the government suggest that offshore entities of most of the Indians associated with the Panama Papers leaks were opened under the RBI’s Liberalised Remittance Scheme as per norms. However, these assumptions are yet to be verified and probed with documents. Any conclusion can be drawn only after that,” he said.
Mundra said the RBI is of the view that “transmission of the recent cut of 25 basis points in Repo Rate will take place effectively in banking sector”.
Axis Bank on Friday unveiled its computer tablet-based app for its ‘Joint Liability Group Lending Programme’.
The government had announced setting up of the special multi-agency group to look into the Panama paper leaks.