Hawala and Informal Banking — Prelims Questions

Consider the following statements about the hawala system in India: 1. It is regulated under the Banking Regulation Act 1949 as an alternative banking system 2. The Financial Intelligence Unit-India (FIU-IND) is the primary agency for hawala detection 3. Hawala transactions are subject to civil penalties under FEMA but not criminal prosecution 4. The system operates through licensed money service businesses Which of the statements given above are correct?

Which of the following best describes the 'settlement mechanism' in hawala operations?

The Prevention of Money Laundering Act (PMLA) 2002 addresses hawala operations primarily through:

Consider the following about digital hawala: 1. It uses cryptocurrency exclusively for value transfer 2. It combines traditional trust networks with modern technology 3. It is easier to detect than traditional hawala due to digital footprints 4. It operates through online gaming platforms and mobile payment systems Which of the statements given above are correct?

The term 'hawala balancing' refers to: