Learn Vocabulary from Newspaper Articles (ECONOMICS TIME)

Money laundering 

RBI must tame urban cooperative credit societies’ account

A report in ET by Sugata Ghosh shows how income-tax sleuths have unearthed a case of large-scale money laundering through a multi-state urban cooperative credit society’s account. The modus operandi — anonymous people deposited and swiftly transferred crores of rupees in the society’s accounts in the names of slum dwellers — reflects poor regulatory oversight. Multi-state cooperative credit societies, which accept deposits only from, and give loans to, members, are regulated by the central registrar under the agriculture ministry. The civil servant in charge, typically a joint secretary-level officer, is ill-equipped and does not have the wherewithal to handle supervision. It makes sense for the RBI to be a joint regulator, as with cooperative banks, or to convert all credit societies into cooperative banks.

A parliamentary panel, too, had raised concerns over multi-state cooperatives becoming a conduit for transferring dubious money. It recommended enforcement by the department of economic affairs. That’s a sub-optimal solution. RBI should be roped in to have a firm legal framework for supervision. Mandate Aadhaar, which would create audit trails, for all transactions. Direct credit societies to file information returns with tax authorities real-time. Errant ones that fail to comply with the regulation should be banned. Cooperative credit structures, the world over, combine thrift and credit, based on mutuality. However, in India, the structure has been focused on credit. These institutions have played a useful role, when the reach of formal finance had been stunted. Their salience grows in inverse proportion to that of formal banking, which is seeing a radical transformation. If these credit societies cannot be properly regulated, they can be culled, without much reduction in social welfare. Source : ET Editorials

IMPORTANT WORDS FOR ARTICLE & THEIR MEANING

1) Sleuths (जासूस) - Sle-youth
Meaning - a detective - Adjectivecarry out a search or investigation in the manner of a detective - Verb
Synonyms - agent, investigator
Example - The sleuths are in more danger with every discovery they make.

2) Laundering (काले धन को वैध) - Laun-der-ing
Meaning - conceal the origins of (money obtained illegally), typically by transfers involving foreign banks or legitimate businesses - Noun
Synonyms - concealment, concealing
Example - The country is a major center for money laundering.

3) Modus (तरीका) - Mode-us
Meaning - way in which anything is done - Noun
Synonyms - form, habit
Antonyms - disorganization
Example - KIt could therefore be allowed to absorb the modus.

4) Dwellers (में रहने वाले लोगों) - Dwell-er
Meaning - a person or animal that lives in or at a specified place - Noun
Synonyms - inhabitant, resident
Example - The number of city dwellers is growing.

5) Conduit (पाइपलाइन) - Con-dew-it
Meaning - a person or organization that acts as a channel for the transmission of something - Nouna tube or trough for protecting electric wiring - Noun
Synonyms - culvert, flume
Example - This hampers the small banks that the non-banks use as a conduit for their services.

6) Errant (भटकनेवाला) - Err-ant
Meaning - erring or straying from the accepted course or standards- Adjective
Synonyms - guilty, lawless
Antonyms - normal, correct
Example - She went to Paris to bring back her errant son.

7) Salience (आगे निकला हुआ भाग) - Sail-e-ance
Meaning - the quality of being particularly noticeable or important, prominence - Noun
Synonyms - lump, nodule
Antonyms - depression, lack
Example - Sometimes the salience of certain power bases may shift with topical issues.

8) Culled (चुनी गई) - Kall-ed
Meaning - reduce the population of (a wild animal) by selective slaughter - Verbselect from a large quantity, obtain from a variety of sources - Verb
Synonyms - extract, glean
Antonyms - insert, reject
Example - The lawyer culled important facts from the mass of evidence.

9) Dubious (संदिग्ध) - Dub-e-yass
Meaning - hesitating or doubting - Adjective
Synonyms - unsure, reluctant
Antonyms - certain, clear
Example - The firm was accused of dubious accounting practices.

10) Juvenilia (कलाकार के लड़कपन की कलाकृतियां) - Ju-ven-lia
Meaning - works produced by an author or artist while still young - Noun
Example (English) - These were not sketches or juvenilia; these were works of an artist in her prime.
Example (Hindi) - ये कोई रेखाचित्र या उनके लड़कपन की कलाकृतियां नहीं हैं; ये तो किसी कलाकार की चरम अवस्था की कृतियां हैं।

Now considering the article above as a Reading Comprehension question, try to answer the following -

• What is money laundering?
• Who will money laundering charges apply to?

Given below are some words to check your vocabulary you can make sentences with those words in the comment section which will be reviewed by us.

• Trail
• Comply
• Stunted
• Radical

Thanks..
Team AIMSUCCCESS