Hawala

Look shivam. HAWALA is banned in INDIA. In simple terms it means sending money to someone through illegal means. Eg: if you want to send Rs.10 Crore  to London to Mr. A   There many problems moreover there are lot of regaulations from Indian Government, RBI, Income tax Deptt. Customs etc. So the easy way is to contact a person in ludhiana who has links in London. you give  Rs.10 Crore to that person in your city. he will take in addition 2% of the amount being send. Thus his agent will give Mr. A     Rs.10 Crore on giving some proof which is mostly the code number written on currency note of Rs.1, 2, 5, 10 etc.

Dear Mr. Sivaram,

In simple term Havala mean "Use of Alternate Banking System" to send money generally outside India.

Mr. Mohinder has given practical example of Hawala transactions.

FEMA and prevention of Money laundaring take care for such transactions.

Thanks

Juzer