Hawala transactions and informal cross-border payments — UPSC Prelims PYQ 1996
Hawala transactions relate to payments:
- Received in rupees against overseas currencies and vice versa without going through official channels
- Received for sale of shares without stock exchanges
- Received as commission for assisting overseas investors
- Made to political parties for election expenses
Explanation
Option (a) is correct
- Hawala is an informal method of transferring money across borders without using official banking channels, often used to bypass regulations.
Answer: (a) Received in rupees against overseas currencies and vice versa without going through official channels
