Currency Demonetisation and Future course of Indian Economy

hanumadu · Post by **hanumadu** » 17 Nov 2016 23:58

habal wrote:
hanumadu wrote: Rumour mongering. Admins please note. Reporting this post.
I have reported this post for baseless accusation and lack of forum etiquette.

We all know who was caught lying about bills missing from RBI bundles.

Atmavik · Post by **Atmavik** » 17 Nov 2016 23:58

Chandragupta wrote:Arun Shourie is just butthurt and hates Modi for no reason.

Did not get any ministry. made some appeals thru rNDTV but was ignored.

Lilo · Post by **Lilo** » 17 Nov 2016 23:59

Todin finally went and stood in an ATM queue in Chennai, first time since demonetisation was announced.
Stood no more than 20 min(the line had some 25 people before me) withdrew from 2 cards got 4k thick wad in moi pocket now

.

The people in the queue were all chilled out (i withdrew at 9pm in night) and many were using 2 cards to withdraw amount and others were not complaining.

Noticed many small food joints are accepting paytm push payments(i.e customer scanning the QR code of merchant & paying him from his app) , big supermarkets are using the pull method (sending sms for transaction to paytm linked mobile with otp to complete the transaction).

Paul · Post by **Paul** » 18 Nov 2016 00:05

I vaguely remember reading about a case when UK was about to devalue the Pound years ago, the info and leaked out and several traders made lots of money betting on it.

Had preparations been more thorough, like printing of more 100 RS notes, calibrating ATMs etc. Chidu's moles in RBI would have figured out what was going to happen and the exercise would have come to naught. He is already asking for the minutes and time of release of this decision to RBI board where his moles will be seated. It will take at least 2 terms to get these moles out of Fin Min.

This exercise of secrecy and the successful execution is no less interesting than a Fredrick Forsyth pot boiler set in our times.

bharotshontan · Post by **bharotshontan** » 18 Nov 2016 00:06

Is it me or is the more positive feedback at ground level happening from southernmost end of the country? Civic sense differences playing out?

Atmavik · Post by **Atmavik** » 18 Nov 2016 00:11

Dad' report from HYD. There is a Kirana shop next to our apartment complex and he has opened a Khata(credit account) for almost every one in the building. The stores supplies are stocked so he does not seem have any cash flow problems. same story with the medical shop.

Jewellers are selling at very high rates. i am not sure why they are so confident of converting the cash to white.

Whats app msgs are going around claiming to be from retired IT commish that to declare un explained money as current year income and at most pay 33% tax on it.

Paul · Post by **Paul** » 18 Nov 2016 00:12

I am sure these challenges were anticipated and discussed but it may have been decided that element of surprise was most important factor.....

habal · Post by **habal** » 18 Nov 2016 00:14

hanumadu wrote:
habal wrote:
I have reported this post for baseless accusation and lack of forum etiquette.
We all know who was caught lying about bills missing from RBI bundles.

You do not know abcd about what was said. You are hurt someone has dared cast an eye on your favorite party and your idol modiji. You have no idea and nor have you counted any bundles.

A bundle is 1000 notes of ₹100 and often when you open ₹100 bundles they do come short but they are never passed on to customers. When doing a day-end though you do have to reconcile this difference by puttimg up cash from own pocket but that extends working hours because one has to trace exact reason for difference.

shyamal · Post by **shyamal** » 18 Nov 2016 00:15

I have received many SMS asking me to convert my notes with a commission. All my colleagues are getting these SMS.

g.sarkar · Post by **g.sarkar** » 18 Nov 2016 00:16

http://swarajyamag.com/economy/modis-be ... of-2017-18
Modi’s Bet May Pay Off: Economy To See V-Shaped Recovery From First Quarter Of 2017-18
R Jagannathan - November 16, 2016, 10:56 am
The sharp drop that has been noticed in economic activity following the demonetisation of Rs 500 and Rs 1,000 notes bodes ill for growth this year. This is bound to reflect in GDP (or GVA) figures for 2016-17. Though one cannot predict how much the growth rate will drop, one can assume that it will not hit the optimistic estimates of 8 per cent being forecast in some quarters after a good monsoon year. The Reserve Bank of India had indicated gross value added (GVA) growth of 7.6 per cent in 2016-17 in its last monetary policy, but actuals could be in the range of 7-7.5 per cent. (GDP is GVA plus taxes minus subsidies).
However, here’s the good news. Any artificial constriction in economic activity is bound to result in a fast spring-back once the negative conditions reverse themselves, for there is no fundamental lack of consumption demand in the Indian economy.
So here’s my forecast, based purely on estimates about how soon the artificial constraint induced by cash shortage will take to reverse itself: I predict a V-shaped economic recovery from the first quarter of 2017-18.
Let’s come back to the present. There is little doubt that public anger is rising right now as ordinary people line up for cash before ATMs and bank branches. The cash crunch has impacted day-to-day transactions and incomes at the bottom end of the pyramid, which means kirana merchants, vegetable vendors, small restaurants, autos and cabbies, and road transport operators are badly hit. Demonetisation has also halted realty deals suddenly, especially second-sales, which are often accompanied by payments in black money.
People are also holding back on basic spending right now as demonetisation has stoked their hoarding instinct: they are hoarding cash as they are gripped by a shortage psychosis.
However, anecdotal evidence suggests that as cash gets pumped in larger amounts into the economy, this hoarding instinct will abate, and people will start spending.
State Bank of India chairperson Arundhati Bhattacharya expects ATMs to be recalibrated to handle the new Rs 2,000 and Rs 500 notes in 10 days. Assuming it will be the same for all banks, this means ATM and bank queues will start shortening by the end of November. The fear psychosis will start waning after that, and normal transactions will start rising.
What demonetisation has done in cities is shift large transactions from cash to cards or e-wallets, which means business may be shifting from kirana stores to big retailers. A Times of India report noted that a day after Prime Minister Narendra Modi announced demonetisation, PayTM, which normally sees customers adding Rs 1.5 crore every hour to their wallets, saw a 10-fold jump on Wednesday (9 November).
Kishore Biyani, who runs Big Bazaar and other big format stores, says his stores saw sales drop to 60-65 per cent of normal the day after demonetisation, but are now back to normal. This is likely to be the story at all big retailers, since money is not in short supply, only physical cash, for the middle and upper classes.
....

Gautam

SRoy · Post by **SRoy** » 18 Nov 2016 00:17

Sometimes poor execution can mar a good planning.

Intentions apart what the f*k the banks are doing?

Why are the private banks compelled to serve all and sundry?

The "indelible ink" measure is a damage control exercise to remedy ill thought execution.

I've posted this somewhere and suggest again.

1. Banks need to serve their own customers only. PERIOD.
2. Separate timings for withdrawal and deposits.
3. No exchange in banks.
4. ATM for own customers only.

Those who don't have bank accounts.
1. Sub 2.5 L deposits or exchanges- Post office, with identity proof. One time deposit only.
2. 2.5 L plus deposits. Go to nearest RBI branch. Better still surrender or burn the notes.

Completely support our PM. But let that not be taken for granted.
Some banking heads now need to roll. Mess is their created.
Reporting from Kolkata, up scale locality of Salt Lake. Barely a quarter of the PSB ATM's are working. None of the private bank's ATM are functioning.

PS: Personally doing fine. My grouse is that cheaters are exploiting the exchange and deposit opportunities and thus creating long queues. Not ready to tolerate difficulties just because banks have not yet woken up to weed out these crooks.

Rishi Verma · Post by **Rishi Verma** » 18 Nov 2016 00:19

bharotshontan wrote:Is it me or is the more positive feedback at ground level happening from southernmost end of the country? Civic sense differences playing out?

If this observation is by reading BRF, it may only indicate weighted result. In north India the "civic sense" prevails in support. 100.00 % enthusiastic support among people in bank lines, taxi drivers, petrol pump guys, real-estate brokers, muslims, and Hindus of various castes (kayastha, kurmi, mauryas, thakurs, Brahmins, jaiswals, yadavs) that I have been asking specifically to get a feel. Not one has said even remotely negative.

habal · Post by **habal** » 18 Nov 2016 00:20

why do bundles come up short ?

maybe calibration issues with counting machines. These machines are so overworked these days that it is possible that the service is due earlier and calibration is delayed. There can be other reasons also, usually when such a short is noted the bundles are opened up and notes are recounted and unbundled. The customer also counts his ₹100 notes himself atleast once.

These days almost all banks are handling only ₹100s and ₹2000 notes.

Suraj · Post by **Suraj** » 18 Nov 2016 00:20

habal: This isn't the politics thread. Any more about politics , political characters and elections from you and you'll have to sit out of the forum for a while. Also, please stop peddling the RBI note issue, unless you have a reference from RBI with data to prove it.

All: In general, there's very little moderator patience to deal with rumor mongerers. Anyone who comes in and posts 'I heard that ...' sets themselves up for mod action against them if it leads to conversation going off track.

Paul · Post by **Paul** » 18 Nov 2016 00:21

Indian rupee seen weathering dollar surge better than most in emerging FX

https://t.co/7UOTqmPvxC https://t.co/gF1Ryu3Kty

Rishi Verma · Post by **Rishi Verma** » 18 Nov 2016 00:26

SRoy wrote:Sometimes poor execution can mar a good planning....<snip>

Be patient, it's only 10-days....

Meanwhile ToI poll has 79:21 in support

Paul · Post by **Paul** » 18 Nov 2016 00:27

Not worth clicking, who amongst the rural and poor took part in the poll?

Atmavik · Post by **Atmavik** » 18 Nov 2016 00:28

Paul wrote:Indian rupee seen weathering dollar surge better than most in emerging FX

https://t.co/7UOTqmPvxC https://t.co/gF1Ryu3Kty

can someone please tweet this to Coupta. he thinks the rupee is in a nosedive.

hanumadu · Post by **hanumadu** » 18 Nov 2016 00:33

habal wrote:
hanumadu wrote:
We all know who was caught lying about bills missing from RBI bundles.
You do not know abcd about what was said. You are hurt someone has dared cast an eye on your favorite party and your idol modiji. You have no idea and nor have you counted any bundles.

A bundle is 1000 notes of ₹100 and often when you open ₹100 bundles they do come short but they are never passed on to customers. When doing a day-end though you do have to reconcile this difference by puttimg up cash from own pocket but that extends working hours because one has to trace exact reason for difference.

No proof. Rumour mongering, casting aspersions on RBI mechanisms and banking standards in India. You are not the first one nor will be the last one to criticize Modi. Plenty of people here who do that, but do not lie or spread rumours.

habal · Post by **habal** » 18 Nov 2016 00:38

{Deleted. I also closed your post report where you provided the very useful information 'This guy is an idiot'. Instead, a formal warning has been issued to you.}

Sicanta · Post by **Sicanta** » 18 Nov 2016 00:39

The government said on Thursday that people can get cash at select petrol pumps with SBI machines by swiping their debit cards, another move aimed at tackling long queues of people turning up at banks and ATMs to exchange or deposit Rs 500 and Rs 1,000 banknotes that were withdrawn last week.

The facility will be available at 2,500 petrol pumps run by public sector oil companies, said a press release retweeted by Dharmendra Pradhan, minister of state (independent charge) for petroleum and natural gas.

“...it has been decided that an amount of up to Rs 2000 per day per person can be dispensed against swiping of debit card from select petrol pumps...,” the release said.

Petrol pumps run by the Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and the Hindustan Petroleum Corporation Limited where POS (point of sale) machines of the State Bank of India (SBI) are available will have the facility.

“The Oil Industry is also in further discussions with SBI and other Banks” to exten this facility to over 20,000 petrol pumps across.

panduranghari · Post by **panduranghari** » 18 Nov 2016 00:39

JayS wrote:
Accepted, but this sounds like doom's day scenario to me. I don't think its relevant to context of my question. I am assuming a normal day-to-day life scenario.

Really? How is it doomsday? Its the nature of fiat currency that perhaps you are accustomed to label as money in a normal day-to-day life.

Rishi Verma · Post by **Rishi Verma** » 18 Nov 2016 00:41

RundiTV running a story from Bloomberg written by a Slyme-jug that "demotenization has backfired"

link

srinebula · Post by **srinebula** » 18 Nov 2016 00:45

Good points sir. Good to know banks are taking help from retired bankers, that should add to their bench strength. I don't know if it would be feasible to run a shift system and keep some of the crowded banks running for longer hours, say 16 hours a day?

Regarding deaths, some members are willfully peddling media propaganda here. I have been warning about these false stories on deaths.
Here are some demonetization myth-busters from Opindia
http://www.opindia.com/2016/11/how-demo ... te-deaths/

I’m embarrassed that I even have to write a piece like this but sadly what I’m about to analyse reflects the pathetic state of the media in India. In particular I’m reacting to a bizarre and ludicrous piece of propaganda alleging a relationship between currency demonetisation and deaths of individuals.

The piece by Deputy Editor of Huffington Post India, Shivam Vij, claims that “there have already been 33 deaths due to demonetisation in 6 days”. The author is thus asserting a causal relationship between the government’s demonetisation of high denomination notes and these deaths.

Vij goes on to cite thirty three cases which allegedly support his claim but it doesn’t take much to figure out, that one can’t establish in any credible way a causal relationship between demonetisation and an individual’s death in so many of these cases.

Start with one of the most ludicrous cases where a “businessman” in Faizabad, Uttar Pradesh allegedly felt chest pains and died soon after watching Prime Minister Narendra Modi’s announcement of demonetisation on November 8. Are we supposed to believe that it was what he was watching that led to his death? So for example, if he were watching Star Wars, would we blame Darth Vader for his death?

Take the case of a 96-year-old man in Udupi, Karnataka who died allegedly waiting in a long queue in a bank. Guess what? The man’s son says his father’s death had nothing to do with waiting in queue at the bank. So this one is at best poor fact checking or poor attempt at propaganda by the author.

Up next, a 45-year-old man in Kerala dies while falling from a construction area in the bank branch where he was depositing money. He had already successfully deposited money the previous day at the same bank. At best, you could blame lack of barricades that would have saved him falling but it’s more than a stretch to blame Modi and demonetisation.

It only gets bizarre from here. An elderly woman in Kanpur died apparently counting currency notes. Tragic, but had she died while reading the newspaper, presumably this intrepid journalist would blame the newspaper for her death?

How about an elderly person who didn’t even have to wait in a queue but collapsed of a heart attack upon reaching the bank? If he’d collapsed outside a movie theatre would this journalist blame the movie that was screened for his death? And even here, the man’s two sons say he had a pre-existing medical condition, wasn’t even standing in line and his death had nothing to do with demonetisation. The family has also expressed anger that their father’s death has been wrongly linked to demonetisation by the media.

Or how about a 45-year-old cashier in Bhopal who collapsed while working at the bank. The spin is he died overworked because of demonetisation but not a shred of evidence is offered to back this up.

A 17-year-old, son of a Border Security Force jawan allegedly commits suicide because his mother wouldn’t give him small denomination notes. There’s almost no limit to the implausible connections this writer can draw.

A couple have already been debunked. Consider where a doctor says she had to turn away parents of a sick baby not because they were carrying demonetised notes but she just didn’t have the right equipment to treat the baby. As it happens this doctor is now the subject of a First Information Report.

In another case a wife is allegedly taunted by her husband for her “inability” to stand in a queue at an ATM. She apparently commits suicide and her husband is now the subject of an investigation in abetting her suicide. So let’s get this straight. A possibly abusive husband taunts his wife for not waiting in queue at the mandi, is the vendor now the cause of what played out subsequently?

You get the idea. In each of these cases, someone dies, shortly after demonetisation but there’s no credible causal link between the two events. Also many of these stories have only a single source suggesting perhaps the version of the stories presented didn’t seem entirely credible even to other news organisations.

As I remarked at the outset, it’s embarrassing that one even needs to debunk such tripe. Any death is tragic but it’s shameful and scandalous that they’re wrongly linked to demonetisation, no less than from an international media house like Huffington Post.

That the Huffington Post does not like demonetisation is clear from pieces on the subject such as “Why the demonetisation drive violates our fundamental right to life” as shown below.

Huffington Post India on Demonetisation
So Supreme Court refused to intervene is something that was unconstitutional?

This is clearly not journalism nor is it even good propaganda. But that’s the Indian media scene for you.

(Written by Rupa Subramanya, who is an Economist and Columnist. Follow her @rupasubramanya)

Ravish Kumar, the NDTV India anchor, who claims to be the gold-standard in reporting, has landed in yet another controversy. In a bid to show how the demonetisation scheme was hurting businessmen, Ravish Kumar tried to pull off a fast one, but was caught in the act.

In his show he introduced an Ajay Arora as the head of Traders Association of Delhi, all the while forgetting to mention his Congress background. All this came to light via this expose

Tajinder Pal Singh
Exposing NDTV-Ravish-Cong Nexus against PM Modi’s Black Money Surgical Strike #CongKaRavish
https://t.co/AqZcIklIPo

— Tajinder Pal S Bagga (@TajinderBagga) November 16, 2016

The video starts with Ravish in a bid to maintain his neutral image defended the demonetisation scheme from some disgruntled men. As the video progressed a crowd gathered around Ravish which very vocally starts supporting Modi and his demonetisation scheme. Suddenly the scene cuts to a terrace where Ravish was found standing with a mere 5-7 people. He explained the reason behind the location change was to get away from all the ‘Bheed-bhaad’. Incidentally in the opening scene of the video Ravish was heard commenting about how the area lacked it’s usual hustle and bustle.

Ravish then introduced Ajay Arora as the head of the Traders Association of Delhi. Arora then proceeded to bash the government’s scheme with a vengeance, by lamenting about the immense hardships he and other traders are facing, the men accompanying him also echoed his viewpoint.

Ajay Arora with Ajay Maken
Ajay Arora with Ajay Maken

The whole report was called into question when Tajinder Bagga searched the facebook profile of the eminent trader association head, Ajay Arora and found him to be the convener of All Delhi Traders Congress and in one of his photos was seen sharing the stage with Delhi congress chief Ajay Maken.

After a bit of digging we managed to find some Facebook posts which might cement Arora’s congress links. The first one shows Arora standing next to Ajay Maken during some fogging program and the second one shows him being part of Trader’s Congress’s “vasooli diwas” accompanied with people who were wearing Congress party’s Gandhi topis. These Facebook posts also might clear the air that the Congress in All Delhi Traders Congress refers to the Political party and is not a synonym to an ‘Association’.

All of the above facts were probably missed by Ravish Kumar during his research.

This is not the first time Ravish has been caught of misreporting facts, OpIndia.com had earlier reported how Ravish Kumar in his blog ‘I am not a super journalist’ twice distorted facts to discredit Kiran Bedi.

The demonetisation scheme is in full swing. Numerous attempts to stall it have failed, with even the Supreme Court refusing to step in. We have already busted over 20 rumours about the scheme. What does the media do now? Bring up some irrelevant fact, twist it, and present it in context of the current scheme to incite passions. This is much like what Arvind Kejriwal did when he claimed the increase in deposits in September 2016 was related to demonetisation (which we had debunked here).

It started with this story in DNA, titled: “SBI writes off loans of 63 wilful defaulters”. While the headline is not totally off the mark, the report is completely off track (emphasis added):

India’s largest public sector bank has dropped more than Rs 7,000 crore, more than 80 per cent of the amount owed to it by its top 100 defaulters, into the Advance Under Collection Account (AUCA) bin for toxic loans. With efforts to recover its dues hitting a virtual dead-end, the State Bank of India (SBI) seems to be have started a clean-up of its balance sheets by writing off loans worth about Rs 7,016 crore owed to it by more than 60 of its top 100 wilful defaulters.

Towards the report did mention the real nature of AUCA accounts and write offs, but no-one seemed to have noticed that. And based on the headline and the initial misleading part, the outrage industry started, led by journalists:

Deputy Resident editor of The Hindu, quoted a tweet by Senior Asst editor of The Hindu, which first conflated “write-off” with “waiver”

DNA Exclusive: SBI writes off loans of 63 wilful defaulters https://t.co/hS7o7OYFGH

— Shivam Vij (@DilliDurAst) November 16, 2016

And this deluded abusive journalist:

As cronies led by Mallaya get loans written of by @TheOfficialSBI you queue for your own money! My take. https://t.co/VCue6tCL5F

— Swati Chaturvedi (@bainjal) 16 November 2016

Once journalists had set the stage, politicians jumped in, a Congress spokesperson and the CPIM General Secretary:

SBI Bank- Such a nice, friendly and cooperative bank- for their wilful defaulters I meant. Rest of us? queue up! pic.twitter.com/RvUGiq2eiO

— Priyanka Chaturvedi (@priyankac19) November 16, 2016

Rs 7000 crore of unreturned loans, including Rs 1201 crore of Kingfisher written off. So much for this govt ‘making the rich pay’. pic.twitter.com/lPz7PdNo6X

— Sitaram Yechury (@SitaramYechury) November 16, 2016

So has SBI really waived off these loans? Not really. For this we need to understand what write-offs are. A balance sheet should reflect the real situation, not imaginary assets like the balance sheet created by Ramalinga Raju. And that’s why Banks have to write off loans. If they don’t write off loans, it is like claiming to hold an asset (loans given by banks, are assets of the bank) where none exists. Will you trust an entity that doesn’t give the true picture of its assets?

Hence write-offs are a purely technical, accounting entry. Write-offs give a true picture of the bank’s assets (loans given) and the income there on (interest). Accounts where prospects of recovery is bleak, are technically written off from the live ledgers and parked in AUCA in accordance with laid down instructions. Most write offs, irrespective of outstanding, should be treated as technical write offs and parked in AUCA and recovery process of these accounts will continue till resolution of these accounts (pdf link).

Even when accounts are written off, various recovery procedures like recovery suits filed before the DRT/ Court. and action initiated under SARFAESI Act continue. Accounts held in AUCA may be taken up for dropping only after exhausting all avenues of recovery, hence merely transferring an account to AUCA is not a “waiver of the loan”.

So a write off mean the loan has been waived? Definitely not. Unless of course you are a media person with low IQ or a politician with an agenda, or a politician with low IQ or a journalist with an agenda.

Update: It was brought to our notice that a similar case of media misreporting had occurred in February 2016 also, and back then, the RBI had issued a clarification stating exactly what we have explained above:

RBI’s old clarification, which failed to educate our journalists

rvishwakarm wrote: Salute to the guy who was serving the country in spite of his medical condition. But haven't we heard of people dying of heart attack while watching a close Ind-Pak cricket match??? It might sound rude but death happens all the time in country as big as ours, just because a person is a banker, or nearby a bank doesn't means is dying due to Demonetisation. And we need to be careful with these media reports, TOILet was into false reporting into this king last week only.
By the way SBI and other PSU banks have roped in some retired bankers to help them out.

habal · Post by **habal** » 18 Nov 2016 00:48

SBI may need extra bankers because it is them who work the longest, being treasury in absence of RBI and all that.

JayS · Post by **JayS** » 18 Nov 2016 00:51

panduranghari wrote:
JayS wrote:
Accepted, but this sounds like doom's day scenario to me. I don't think its relevant to context of my question. I am assuming a normal day-to-day life scenario.
Really? How is it doomsday? Its the nature of fiat currency that perhaps you are accustomed to label as money in a normal day-to-day life.

In normal life I do not see people making distinction in whether I pay money by cash or by debit card. All I see why some prefer cash is because they want to hide that income from their books or want to increase their margins by avoiding taxes. I do not see people rejecting debit card just because they trust more on paper money than digital money. Losing trust in a particular bank or whole banking system that one would not trust on a number in his account is doomsday scenario, if not what it is, pray tell me..??

BTW, how fiat money in paper is different than fiat money in digital form..?? Assuming bank is trustworthy to back the number and you one could get paper money for the number whenever wanted. None of them are backed by anything but government's credential.

Bhurishravas · Post by **Bhurishravas** » 18 Nov 2016 01:00

In the bank closest to me, there is a long queue but its not as if they have to work till 9-10. Everything is over by 5 max. Probably one hour extra at max. Noone is complaining. Its a festive atmosphere. Perhaps because it is a student area.

The other thing I noticed is that some general stores are accepting 500-1000 notes still, provided u buy stuff of that amount. Safal and mother dairy included, in Delhi.

Suraj · Post by **Suraj** » 18 Nov 2016 01:03

JayS: What panduranghari and you are saying are different things. He's referring to long term repercussions of loose monetary policy. On a day to day basis it's probably a big deal whether cash or debit card is used.

kvraghav · Post by **kvraghav** » 18 Nov 2016 01:11

Was checking the CMS ATM website. Fully rural cities like tumkur or fully urban cities like Mangalore have lot of ATM running. Semi urban city like bangalore has none.

hanumadu · Post by **hanumadu** » 18 Nov 2016 01:31

Already posted before

Bibek Debroy answers the question of how this demonetization prevents corruption or creation of future black money. He says this step is not to address either of those. This deals exclusively with current black money. There are more steps that are already taken and that will be taken to address those other issues. I suggest patience before calling this step as useless.

Also they were counting on most of the people having a bank account.

MurthyB · Post by **MurthyB** » 18 Nov 2016 01:34

How come no one posted this yet

SBajwa · Post by **SBajwa** » 18 Nov 2016 01:42

Venkaiah Naidu on Demonitisation in Rajya Sabha

Picklu · Post by **Picklu** » 18 Nov 2016 01:44

Haven't been to any bank or atm so far. Would try to stretch the same "lyad" till 15th dec.

Told the maid, cook, kid's taekwondo master and drawing teacher that they are going to get money transfer in their accounts from next month, all mildly protested but then meekly surrendered

both hyundai service center and local pet shop sent portable card swiping machine to home for car service and aquarium cleaning respectively

srinebula · Post by **srinebula** » 18 Nov 2016 01:48

RajeshG · Post by **RajeshG** » 18 Nov 2016 01:48

i think this issue needs to be taken care of. otherwise commodity prices may rise and it will become expensive politically.

http://www.business-standard.com/articl ... 424_1.html

He said for a week, most traders had stopped ordering big quantities, as dealers down the line were not willing to pay cash and liquidity had dried."Usually, during this time of the year, 175-200 trucks of potatoes arrive daily in Azadpur. Nowadays, only around 90 are arriving, as transactions have gone down," he said. One truck usually carries 10-13 tonnes of potato.

Abhay Kumar, secretary of the Lohardaga APMC in Jharkhand, said the move should give some relief to traders but the extent would have to be seen in the coming days.

MurthyB · Post by **MurthyB** » 18 Nov 2016 01:51

Manu Joseph throws in the towel

Why Prime Minister Narendra Modi has already won the demonetisation gambit

One strand of the moral outrage against demonetisation has been led by the refined urban class that dislikes Modi. They are excited by any story that assures them that Modi has made a catastrophic mistake.

There is something clownish about the urban middle class. They keep whining about the state of the nation but when powerful solutions appear they reject them. They reject them because they are as corrupt and harmful as the aspects of the nation they despise.

Suraj · Post by **Suraj** » 18 Nov 2016 01:52

This is an enforcement issue. The relevant information is:

most traders had stopped ordering big quantities, as dealers down the line were not willing to pay cash and liquidity had dried

Liquidity hasn't dried up. It's one party demanding cash the other can't pay. Both parties can be expected to have bank accounts. But no, seller doesn't want bank payment, but cash. Hah.

We aren't talking about small time storefronts transacting a few tens or hundreds at a time. This is bulk food chain. These are simply cases of last stands by black marketers. Best to report them aggressively to the law enforcement.

RajeshG · Post by **RajeshG** » 18 Nov 2016 01:58

its sad to see that this is the level of opposition. how many people in india even know/care about nazist/fascist/whatever. is anand sharma even talking to somebody in india ? this is beyond stupid

http://www.business-standard.com/articl ... 605_1.html

RajeshG · Post by **RajeshG** » 18 Nov 2016 02:00

Suraj wrote:This is an enforcement issue.

Its still a problem that needs to be fixed. Fixed in a politically and economically acceptable way.

Picklu · Post by **Picklu** » 18 Nov 2016 02:02

Didi is a first class demagogue.

She came to power for the first time by identifying the rubble rousing potential of the forcible land acquisition issue handed to her by Buddha led CPM in Singur and Nandigram and ruthlessly exploiting the same to the detriment of the state.

She is trying to make the jump from state to national level by following the same playbook.

Only, without Maoist support and Sharada black money supply, her fiery speeches have no taker outside some select pocket.

She is leaving no stone unturned though in the search of a riot.