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Panama Leaks: Rajan Said Probe To Determine The Legitimacy Of Accounts

RBI Governor Raghuram Rajan today said the multi-agency probe analyze the legitimacy of such holdings of Indians named in the leaked Panama list

RBI is part of the multi-agency group that will probe the list with 500 Indians including celebrities and industrialists. 

RBI Governor Raghuram Rajan

Asserting that could have genuine reasons to have offshore accounts, RBI Governor Raghuram Rajan today said the multi-agency probe analyze the legitimacy of such holdings of Indians named in the leaked Panama list.

The Reserve Bank is part of a group of several agencies announced by the government yesterday to probe the list has about 500 Indians, including celebrities and industrialists.

"We are obviously part of the research team that will look into this matter. It is important to note that there are legitimate reasons to have accounts outside," he said after unveiling the first bi-monthly policy for 2016-17.

"The LRS scheme allows you to take money out. However, to see what is legitimate and what is not legitimate. That is the research process that will take place," he said.

Under the liberalized remittance scheme (LRS), all residents, including children, are allowed to freely remit up to USD 2,50,000 per year for any current account transaction or allowable capital or a combination of both.



Finance Minister Arun Jaitley said on Tuesday that Prime Minister Narendra Modi discussed the matter with him this morning and on his advice group has been established, which includes officials from CBDT, RBI  and FIU (Financial Intelligence Unit).

The Indian Express published a report based on leaked documents from a Panama law firm Mossack Fonseca who is said to have links with more than 500 Indians daily offshore firms. The said the list includes trusts and foundations and data 234 Indian passport.

Speaking on the subject, H R RBI deputy governor Khan said there are 2-3 issues related to the topic. "Under FEMA few things are allowed and some are not. So the investigation reveals what is legitimate," added Khan.

The Special Investigation Team (SIT) on black money said yesterday that the issue thoroughly investigate Documents Panama. "Investigations are being carried out.

We will investigate (the list) thoroughly, "SIT Chairman Justice (retd) M B Shah had said.

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