New Delhi: The Cabinet on Wednesday approved the new Benami Transaction (Prohibition) Bill, which aims at curbing the generation of domestic black money.

"The Union Cabinet has approved the new Benami Transaction (Prohibition) Bill to curb generation of black money," said a source after the Cabinet meeting here.

Apart from confiscation, the Bill provides for prosecution and aims to act as a major avenue for blocking generation and holding of black money in the form of benami property, especially in real estate.

The government had in Budget 2015-16, presented at the end of February, announced that it would come out with a new and more comprehensive Benami Transactions (Prohibition) Bill.

The Benami Transactions (Prohibition) Act was earlier enacted in 1988, but the rules under that Act could not be formulated due to inherent infirmities in it.

Following this, in 2011 the government introduced in Parliament a Benami Transactions (Prohibition) Bill, which proposed replacing the 1988 Act.

The Bill was referred to the Standing Committee on Finance for examination, which submitted its report in June 2012. However, the Bill lapsed with the dissolution of 15th Lok Sabha.