Published Paper Details:

Illegal operations like as importation, arms trafficking, and corruption constitute a large portion of the economy's revenue, yet many people avoid paying their fair share of taxes because they fear that the government will only utilise the money for its own benefit. The illicit market and its attendant "shadow economy" may pose a serious threat to India's official financial system. It's also a major contributor to the government's declining tax collections. Therefore, it wants to be inspected. There are numerous ways in which its eradication might benefit the economy. An unofficial sector within the financial system whose goals compete with those of the official, sanctioned, or legitimate sector is what constitutes the parallel financial setup. There are political, commercial, legal, industrial, social, and ethical implications of the parallel financial system. Researchers have tried to dissect the common knowledge about India's parallel financial system by looking at its origins, outcomes, and official responses. According to the findings, the underground financial system's expansion in the Republic of India and other emerging countries has been proceeding at a dizzying rate in recent years. According to the research, the government of the Republic of India has previously implemented a variety of commissions for evaluating shadowy financial setups, but reviews of these estimates are no longer ongoing. The Indian government is increasingly concerned about the prevalence of the parallel economy, and a number of commissions have been established to dominate it, but the impacts of this phenomenon are no longer as striking as they previously were. The paper recommends instituting a central Know Your Customer system, keeping a written record to modify the effort of using multiple identities when making financial transactions, and establishing fine credible deterrence by proposing the establishment of an investigation unit with a social control board of directors as the nodal cynosure.