New Delhi: With India going all out to find capital for its liquidity-starved economy, Gujarat Chief Minister Narendra Modi cautioned the Centre against letting ‘dirty money’ find its way into the banking and financial sector.
Gujarat Chief Minister Narendra Modi cautioned the Centre against letting ‘dirty money’ find its way into the banking and financial sector. Ramesh Pathania / Mint
“I have placed the issue before the Prime Minister as well. We must be careful and ensure that dirty money does not enter (into our country),” he said, addressing captains of industry and financial markets at the India Economic Summit here.
He said that he was not talking about the black money but inflow of funds from overseas sources that could be suspect.
“If dirty money gets into the financial and banking sector, they will dictate for the next 10 years,” Modi said at the annual Summit organised by the CII and World Economic Forum.
India like several other countries is facing a severe liquidity crunch, an issue the government is trying to address through liberalising rules for foreign fund flows via routes like the external commercial borrowing.
When the stock market was booming last year, National Security Advisor M.K. Narayanan had spoken of the possibility of terror funds finding its way into the Indian financial markets.
Sebi had separately banned issuance of P-Notes by FIIs to overseas investors who were otherwise not eligible to invest in the Indian markets. But this rule has since been revoked this year.