Mumbai: Central Economics Intelligence Bureau Alerts Authorities On Usage Of ₹2,000 Notes As Tokens In Hawala Transactions

Mumbai: The Central Economics Intelligence Bureau (CEIB) has alerted law enforcement agencies about Rs 2,000 notes, which have been withdrawn from circulation, being used as tokens by hawala operators to facilitate illegal money transfers.

Hawala operators, who run a parallel banking system for black money cash transactions, have adopted the Rs 2,000 note as a token equivalent to Rs 5 lakh cash.

“The rolled-back Rs 2,000 notes are in demand to be tendered in illegal hawala business transactions and threatening the economic security of India,” an official said.

The CEIB reported that the parallel financial system of tendering Rs 2,000 notes as tokens for hawala transactions was revealed after currency notes were seized from Puducherry and Kasaragod in February in lieu of 20,000 currency notes of Rs 500 denomination to be delivered by road from Mangaluru to Kochi to complete a hawala transaction.

About Token System Developed By Hawala Operators

Hawala operators developed the innovative ‘token’ system to overcome the risk of getting robbed or caught by police at checkpoints. A courier is given two Rs 2,000 notes for safe delivery of Rs 10 lakh when the serial numbers of the notes match the ones with the receiver. The courier is provided cash equal to the ‘token’ value of the notes for further delivery to the final destination, eliminating the risk involved in carrying huge amounts of cash.