Currency Demonetisation and Future course of Indian Economy

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habal
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Re: Currency Demonetisation and Future course of Indian Economy

Postby habal » 21 Dec 2016 09:59

Also private banks have now no incentive to load cash into ATM ever since ATM withdrawal charges have been scrapped by RBI order.

ATMs were/are a profit centre for pvt banks. ATMs were not opened for public good by these pvt banks.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby wig » 21 Dec 2016 10:20

http://www.tribuneindia.com/news/nation ... 39690.html

Note ban has ‘little impact’ on Naxals

Prime Minister Narendra Modi on November 8 announced the demonetisation decision with an aim to curb black money, counterfeit currency and also terror and Naxal funding, but security agencies feel that shadow money in the hinterland, where Left Wing Extremists (LWEs) have their sway, may continue to flourish with the help of local inhabitants and over-ground secret cadre.
Several estimates by intelligence and security agencies peg the annual turnover of Naxal funding in the range of Rs 120 to Rs 130 crore.
Sources in the Ministry of Home Affairs (MHA), who directly deal with the Central and state security agencies, said initially, there was a feeling that the surprise announcement on demonetisation would deal a death knell to the Naxal funding in line with the terror funding.
“But the game-changer move is facing an uphill battle domestically, as latest intelligence inputs from ground zero in states like Chhattisgarh, Jharkhand and Odisha suggest, LWEs appeared to have innovated to exploit the financial system in order to beat the anti-black money measures,” said a senior official. The left wing ultras have built a shadowy financial empire through extortion, kidnapping and drugs.
Sources said the IB reports at least from two places – Khasawan in Saraikella district of Jharkhand and a few places from Bastar in Chhattisgarh – suggest similar trends of Maoists somehow managing to collect money in new currency notes of Rs 2,000 and Rs 500. The reports said possibly the extremists could be misusing bank accounts of villagers and cadre of over-the-ground groups, they revealed.
The IB report to the MHA has asked it to sensitise villagers in LWE-affected areas against allowing their bank accounts be misused.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Dasari » 21 Dec 2016 10:24

Just now read a news report that Demonetization completrly crippled Maoists.

Demonetisation: Maoists feel the heat as Rs 55 crore frozen - from Economic Times
RANCHI: At least 40 accounts of Maoist operatives containing Rs 55 crore have been frozen by the banking authorities in Jharkhand, a state that is one of their strongholds, police said.

Among the 40, 15 are hardcore ultras who carry bounties on their heads.

Official sources said it was being probed as to how these Maoists were operating their accounts with such freedom. The accounts which have been frozen were spread across Ranchi, Jamshedpur, Chaibasa districts.


"The bigger names of the Maoists ranks whose bank accounts have been frozen included Akramanji, Brajesh Ganju, Bindu Ganjhu, Rakesh and Shekhar Ganjhu. Apart from them, the accounts of Maoists like Kohram, Arif, Karampal and Kabir's, who carry awards on their heads, have also been frozen," the police said.

Several Maoists who deposited their money into the accounts of their family members or other relatives have also been debarred from carrying out financial transactions.


Since the wives of many Maoists were either Mukhiyas or Zilla Parishad members, their accounts were being strictly monitored.
Last edited by Dasari on 21 Dec 2016 10:43, edited 1 time in total.

chetak
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Re: Currency Demonetisation and Future course of Indian Economy

Postby chetak » 21 Dec 2016 10:25

This is why naidu is an unreliable "ally".

Always looking out for number one and always demanding that others also look out for him without him ever returning anything back.



Demonetisation: Chandrababu Naidu, first non-BJP leader to support, says it was 'not our wish'




Demonetisation: Chandrababu Naidu, first non-BJP leader to support, says it was 'not our wish'

Dec 21, 2016

By FP Staff
After coming out in support of demonetisation initially, Andhra Pradesh Chief Minister Chandrababu Naidu on Tuesday did a volte face saying that this is not what they wished for and said the solution to problems arising out of the note ban still remained elusive even 40 days after the step. The U-turn is significant as Naidu was one of the first non-BJP leaders to support the Narendra Modi government's move.

"Demonetisation was not our wish but it happened. More than 40 days after demonetisation, there are still a lot of problems but yet there appears to be no solution," Naidu said addressing a workshop of Telugu Desam MPs, MLCs, MLAs and other leaders in Vijayawada on Tuesday.

Andhra Pradesh Chief Minister Chandrababu Naidu. AFPAndhra Pradesh Chief Minister Chandrababu Naidu. AFP"It still remains a sensitive and complicated problem," Naidu observed.

“The people who are supposed to manage the crisis are incapable of doing anything. The RBI has not been able to do anything about it. It still remains a sensitive and complicated problem," he has been quoted as saying in media reports.

"I am spending two hours daily to review the situation and ease the problems caused by demonetisation. I am breaking my head daily, but we are unable to find a solution to this problem,” said Naidu, who heads the 13-member central committee to look into demonetisation issues.

Naidu had been a strong proponent of ban on high denomination currency notes of Rs 500 and Rs 1,000. In fact, he had written a letter to Prime Minister Narendra Modi on 12 October reiterating his demand.

On 9 November, hours after the Prime Minister came out with the demonetisation announcement, the Telugu Desam Party started claiming credit saying it was a "victory for Chandrababu" over his fight on corruption.

"This is a moral victory for the TDP," it said on posts on Facebook and Twitter.
"Prime Minister Modi may have taken the decision now but Chandrababu had these thoughts even when he was in the opposition (2004-14). He had been fighting for scrapping of Rs 500 and Rs 1000 notes since then," the TDP said in a Facebook post.

The party media cell dug out newspaper clippings dated back to 2013 June when Chandrababu raised the demand for the first time.

But as people started facing trouble in exchanging the scrapped notes as well as in withdrawing cash from their savings accounts, Chandrababu seemed to change his tone and started making critical remarks about the Centre’s move, particularly the introduction of Rs 2,000 notes.

"I am spending two hours daily to ease the problems caused by demonetisation. I am breaking my head daily but we are unable to find a solution to this problem," the CM said on Tuesday.

"We could resolve the 'August crisis' (an internal party coup dating back to 1984) in 30 days but this (demonetisation) still persists," he said.

He said banks were "not prepared" for a transition to digital economy. "They are unable to even register banking correspondents," he added. Unless there were remedial measures, people's woes would continue in the long-term, Chandrababu warned.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Dasari » 21 Dec 2016 10:57

As I said the rules that Arun Jaitley is changing are based on how fraud is happening on the ground. The latest rule change and any subsequent ones are absolutely required if we want to catch the rat that is cornered into the 2 weeks window. The volte turn from CBN validates the evidence that I described earlier. The political mafia has still lot of BM to convert in the next 2 weeks. As the day approaches and they left with lot of old notes, they will up the ante and ask for extension by lining up poor people on hire with notes. We also notice, MSM like TOI lately changed their stance and churning out articles at rapid pace against demonetization, setting the stage for extension. Any extension would be a disaster.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Rishi Verma » 21 Dec 2016 11:47

Just now read a news report that Demonetization completrly crippled Maoists.


Wonder why "freezing the maoist bank accounts" had to wait for DeMo.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Dasari » 21 Dec 2016 11:53

Rishi Verma wrote:
Just now read a news report that Demonetization completrly crippled Maoists.


Wonder why "freezing the maoist bank accounts" had to wait for DeMo.
if I read between the lines, their accounts and their families accounts were identified after huge deposits were made. So they froze them after the BM is deposited.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Rishi Verma » 21 Dec 2016 11:56

This may be the biggest fish whose pond has been raised by Income-tax guys... Hope many more to follow.

TN Chief Secretary Residence Raided by IT

They said the raids were being conducted in connection with his alleged links with sand mining baron J Shekar Reddy and others.


Amma's flight departed on time...


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Re: Currency Demonetisation and Future course of Indian Economy

Postby yensoy » 21 Dec 2016 12:26

Rishi Verma wrote:This may be the biggest fish whose pond has been raised by Income-tax guys... Hope many more to follow.


Why aren't we seeing more action in the cow belt? Isn't it common knowledge that there is more single and double black money around there?

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Re: Currency Demonetisation and Future course of Indian Economy

Postby madhu » 21 Dec 2016 12:29

EC Delists 200 Political Parties, Likely to Inform I-T to Scan Funds
The Election Commission of India (EC) is likely to inform Central Board of Direct Taxes (CBDT) about its decision to delist 200 political parties on suspicion of their alleged involvement in money laundering.
It was found that out of 200, many of these political parties have not contested any election in last 10 years and EC suspects that they could be involved in money laundering.
Sources said, CBDT will look into the financial transactions of these political parties since they are no longer entitled to any tax benefit.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby RajeshG » 21 Dec 2016 12:33

BJP scored a major victory in Chandigarh municipal elections ( 21 out of 26 ). AAP didnt contest. How much of that can be extrapolated to Punjab. Does anybody have any thoughts ? I dont know how realistic this opinion is but this is the general feeling. Is this accurate ?

http://www.dnaindia.com/india/column-6- ... ch-2285060

The BJP-SAD alliance is widely expected to lose Punjab and yet it managed to increase its numbers in the Chandigarh municipal polls. While it would be wrong to over-analyse the data, owing to the absence of AAP which didn’t take part in the elections, one thing is for sure. BJP-SAD is not a spent force in Punjab, and Congress and AAP can only ignore the ruling alliance at their own peril. In a border state like Punjab, where terrorism, drugs and counterfeit currency are big causes of concern, demonetization may even have a positive effect on voters as it is likely to crack down on these burning problems.

Can BJP continue this momentum into the five state polls in 3 months time? A lot will depend on how quickly the system normalises post December 30. The PM asked for 50 days to get rid of black money. The citizens of India seem to have given its ‘pradhan sevak’ that grace period, but patience may run out soon.

It doesn’t take a genius to figure out that demonetization hits a section of dedicated BJP voters badly— the trader community and the urban upper class. Yet PM Modi has used his courage of conviction to implement the scheme. Only the future will tell if he can upend all political calculations and end up with a new larger voting block, steadfastly supporting his decisions. That will be no less radical than the decision of demonetization itself.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Yagnasri » 21 Dec 2016 12:42

While DeMo might have hit the trade class, I am not sure how upper class is hit by it. Even in case of trader class most of the small traders and retailers are not going to be hit because there is no long-term problem to any small size trader.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby RajeshG » 21 Dec 2016 12:55

Dasari wrote:As I said the rules that Arun Jaitley is changing are based on how fraud is happening on the ground.


Yes tweaking would be neccesary but too much tweaking and it starts becoming a credibility problem or worse competence problem.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Yagnasri » 21 Dec 2016 13:07

Systems of DeMo mainly became a fight with looters and hoarders. GOI need to change its rules etc. based on the methods used by them to cheat the systems in place.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby MohdKav » 21 Dec 2016 13:08

RBI withdraws Rs.5000 Notice.

There is absolutely no panic on the ground, people ( middle level to the big guns) have very easily changed their money. The cost of conversion have come down from 30 percent during the initial days to 50 % and to now 15%.
2000 notes are easily available with people in large quantities.
Now if this is possible in Tier 2 city like Cochin, which is far more law abiding than rest of India, one can only imagine.
Nobody is burning money, nobody is getting caught, other than some token people all around India.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Sachin » 21 Dec 2016 13:34

MohdKav wrote:RBI withdraws Rs.5000 Notice..

Which one?? The one only allowing a one time deposit of ₹5000?? If yes, did not see that on any news portals as of now.

Next, what is your take on ₹1080 crores in Co. Op banks in Kerala which was said to be unaccounted by NABARD? Do you feel all of them are bona-fide accounts whose holders would provide all KYC documents??

And I am hearing stories of Bengalis going back by the train loads as there is no job for them. I agree with you, no much stories of tax raids in Kerala.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Rishi Verma » 21 Dec 2016 13:53

yensoy wrote:
Rishi Verma wrote:This may be the biggest fish whose pond has been raised by Income-tax guys... Hope many more to follow.


Why aren't we seeing more action in the cow belt? Isn't it common knowledge that there is more single and double black money around there?


What's a cow belt, I am surprised too Yadavs and Mayawati's are roaming free in UP.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Yagnasri » 21 Dec 2016 14:00

http://timesofindia.indiatimes.com/indi ... 094547.cms

These rates needed to be removed and instead cash transactions - withdrawals needed to be charged. At present large cash transactions are charged, and that needed to extend to all cash transactions. At least for withdrawals. Deposits need not be charged as the deposits take cash away from circulation.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Sicanta » 21 Dec 2016 14:05

Yagnasri wrote:http://timesofindia.indiatimes.com/india/lower-rates-for-merchants-to-push-digital-deals-cms-panel/articleshow/56094547.cms

These rates needed to be removed and instead cash transactions - withdrawals needed to be charged. At present large cash transactions are charged, and that needed to extend to all cash transactions. At least for withdrawals. Deposits need not be charged as the deposits take cash away from circulation.



Today i was charged 4rs for resetting my sbi internet banking password after misplacing the original one. These things need to be taken care of soon as possible.
Last edited by Sicanta on 21 Dec 2016 14:30, edited 1 time in total.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby asgkhan » 21 Dec 2016 14:19

Dad has gone thrice to the HO to withdraw cash from his SB A/C. He has been sent back that they have not received money from RBI.

He has gone again today, but the manager has refused to give more than 5k today.

Construction is due to start next month, contractor needs cash, plan approval needs cash. Now what do we do ?

ATMs are all closed. Seriously the sheer amount of incompetency is mind-boggling !!

Now the posters short on common sense, not living in desh, will start

1. Posting feel good links/tweets rah-rahing demonitisation
2. Suggest IMPS/PayTM/Other half baked measures
3. Give uvachas and speeches on how this 1/2 baked measures which has moved from black money to cash less/less cash objective will improve the overall quality of life.
4. One of the diggajs will start posting numbers running into crores and trillions to prove me wrong.

On the ground, the magnitude of stupidity is growing, made worse by that fcukface aruj jaitley smug facedly giving interviews and his ministry sabotaging the demonitisation drive. Instead of coming up with cohesive measures and shoving the boot up RBI's musharraf, he is busy giving interviews and clarifications on the daily goof-ups.

Modi-mian is busy giving speeches to the dhoti-clad, bhooka nanga gareeb shittizens, who are waiting for the mirage for their upliftment.

While I completely support demonitisation, I am not happy with the implementation. The road to hell is paved with good intentions. While the intention is laudable, the execution has been laughable !!

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Sicanta » 21 Dec 2016 14:38

asgkhan wrote:
While I completely support demonitisation, I am not happy with the implementation. The road to hell is paved with good intentions. While the intention is laudable, the execution has been laughable !!



Well just treat it as an aberration and move on. And you can just transfer money through an atm. No need for digital wallets or visiting any branch.

;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

RBI exempts all KYC accounts from Rs 5000 deposit norms

http://www.business-standard.com/articl ... 387_1.html
Last edited by Sicanta on 21 Dec 2016 14:45, edited 1 time in total.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby MohdKav » 21 Dec 2016 14:38

Sachin wrote:
MohdKav wrote:RBI withdraws Rs.5000 Notice..

Which one?? The one only allowing a one time deposit of ₹5000?? If yes, did not see that on any news portals as of now.

Next, what is your take on ₹1080 crores in Co. Op banks in Kerala which was said to be unaccounted by NABARD? Do you feel all of them are bona-fide accounts whose holders would provide all KYC documents??

And I am hearing stories of Bengalis going back by the train loads as there is no job for them. I agree with you, no much stories of tax raids in Kerala.


The one time deposit which was announced yesterday, is withdrawn today.
Co-operation Banks have been always a den for the political class as well as the society to hide their wealth. They are jammed. Chitties by societies have grinded to a halt. There could be a mix of both in these accounts, legitimate as well illegitimate money.

Anyhow money is being transfered from Co operative banks into fake accounts in PSB and Private Banks. There has huge outflow of money from Co-op Banks into private banks ( fake accounts )
Why only Kerala - Everybody in this country have black money in some form or the other. They have indulged in it. The sheer scale and societal participation in black money is unprecedented in comparisson to any other country. So keeping that in mind, do you think raids or arrests have happened in that scale?
Touts will deliver money to your homes.
I suggest you read from page 1 , how people are slowly understanding the gravity of the decision taken without adequately plugging the loopholes. The discussion on this forum is one sided, during the earlier pages it was not even fathomable that 'new' money will be available so easily, it was as if the bankers were some Raja hari chandras. A paltry 80 crore has been siezed all over India, while in cochin one agent itself has 189 crores with him

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Rammpal » 21 Dec 2016 14:39

asgkhan wrote: the execution has been laughable !!



There's a Terrible misalignment between the above expression and the rest of the post.
Anyone in any level of angst you portrayed in your post, would hardly describe a situation like yours..... laughable, would he ?
i.e.: if I were ever to be in an explosive mood, I would, more or less, Never find anything around me - laughable.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Yagnasri » 21 Dec 2016 14:40

@Sricanta - Online banking saves a lot of money to the banks. It also gives them low-cost funds. Instead of encouraging that banks are charging money for this service. This is the problem. Unless this mentality of the banks goes there will be problems.

@asgkhan - I agree there are problems and more needed to be done on a war footing. Jet Lee is the worst among the cabinet ministers. I am not sure you are from which city, but in our place, ATMs, etc. are working. Yes, cash transaction habit is still there with most of the places and it is a big problem.

My mother was seriously sick in the hospital on 8th Nov, and I faced lot fo problem as to Doc was not taking cheque or online payment.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby habal » 21 Dec 2016 14:56

banks should not deny folks their minimum weekly quota of 24k.

there are many service providers, businesses that will commit suicide or relocate to foreign location rather than get into tax net in India.
this is why tax reforms should have gone hand-in-hand with demonitization in a ideally implemented scenario.
for folks blaming bankers, it needs to be said here that aam bankers are not receiving any money from their RO/HO/bank chest/RBI etc to give 189 crore to a single businessman and so on.
And here a banker means your common branch manager, bank clerk & so on.
Most bank regional offices give away around 10-20 lakh/week per branch to meet demand from depositors. It does not matter what size of your branch is. All branches receive more or less similar amounts.
This does not work well for those branches that are more strategically located and have many times more a/c holders than mofussil branches.

This post of Rbi Senior Special Assistant that seems to prop up again & again as getting flashed in various IT/CBI stings having been caught with 1.5 Cr etc is basically your avg RBI clerical staff who are invested with duties of moving cash into trunks and managing general logistics of cash flows. These guys are not high up in chain. They ain't even managers.
Last edited by habal on 21 Dec 2016 14:58, edited 1 time in total.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Aditya_V » 21 Dec 2016 14:57

@ ASG Khan-> In desh and suffering in a city 350km east of yourselves, used my connections to withdraw 14K from the Bank yesterday fr child's vaccine and small town trip. Please wait anther 10 days, once the old notes deadline ends and counted and sent to RBI, will new notes be delivered in amounts.

The Govt. at this point thinks that as long old note exchange chance is there some Phera pheri can take place and hence its effectively a lock down mode now. Only after jan 2-Jan5, when all old notes with RBI, will the fresh inflow start. Right now nobody is depositing cash in Banks, now even companies like Telecoms, Utilities, Hotels, businesses who normally have legitimate cash collections.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby James » 21 Dec 2016 15:02

Yagnasri wrote:http://timesofindia.indiatimes.com/india/lower-rates-for-merchants-to-push-digital-deals-cms-panel/articleshow/56094547.cms

These rates needed to be removed and instead cash transactions - withdrawals needed to be charged. At present large cash transactions are charged, and that needed to extend to all cash transactions. At least for withdrawals. Deposits need not be charged as the deposits take cash away from circulation.


Be careful about what you wish for and think thru to the end. If withdrawals will be subject to charges, then do you think that people will want to make any deposits at all in future? Sure, they may take a one time hit and withdraw everything and then no one will make any deposits in future, if they can help it. They will prefer to transact in cash only, and outside the banking system. It would only lead to an increase in cash transactions and not decrease them. IMHO and all that onlee.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 21 Dec 2016 15:37

Yagnasri wrote:While DeMo might have hit the trade class, I am not sure how upper class is hit by it. Even in case of trader class most of the small traders and retailers are not going to be hit because there is no long-term problem to any small size trader.

In the short term doctors clinic footfall and hotels (tourism & restaurants) have taken a 50-70% hit

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 21 Dec 2016 15:41

Yagnasri wrote:My mother was seriously sick in the hospital on 8th Nov, and I faced lot fo problem as to Doc was not taking cheque or online payment.

Sorry to hear about this. Hope your mother is better now. Not defending doctors who do that but most patients come as emergencies and it is an "inside joke" in medical circles that once the emergency is treated no one is interested in paying anything. Doctors have no way of judging who is who. Today I had a RoPer with whom I spent 45 minutes treating and explaining and when the time came to pay a consult they were all worked up and upset

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Nitesh » 21 Dec 2016 15:41

The numbers are increasing, this will be very interesting cat and mouse game:

http://economictimes.indiatimes.com/new ... 097554.cms

The Enforcement Directorate (ED) has begun investigating the around 300 district co-operative banks across India, with one such bank in Mumbai -Shamrao Vithal co-operative Bank -reporting Rs 1,400 crore in deposits post demonetisation.

A handful of big co-operative banks have reported deposits of more than Rs 10,000 crore since demonetisation, though the window of deposit was available to them only for a few days after November 8.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby arshyam » 21 Dec 2016 15:41

habal wrote:there are many service providers, businesses that will commit suicide or relocate to foreign location rather than get into tax net in India.

I don't understand the bolded part. Which foreign location will they be based out of and provide service - won't they need to register there and pay local taxes? Note that I am ignoring tax havens when it comes to foreign locations - they don't have adequate populations to offer any "service".

While the tax dept is also corrupt, etc. and has been used as justification in the past to stay away from being inside the system, isn't the govt at least trying to make it easier to be compliant in the future? GST, for example? Why this continued angst against taxation in India?

The last is a general q, not necessarily addressed to habal. But I have observed that Indians in general hate to follow any law in India, but are amongst the most law-abiding citizens when they step out. Strange creatures, these.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Yagnasri » 21 Dec 2016 15:45

shiv wrote:
Yagnasri wrote:My mother was seriously sick in the hospital on 8th Nov, and I faced lot fo problem as to Doc was not taking cheque or online payment.

Sorry to hear about this. Hope your mother is better now. Not defending doctors who do that but most patients come as emergencies and it is an "inside joke" in medical circles that once the emergency is treated no one is interested in paying anything. Doctors have no way of judging who is who. Today I had a RoPer with whom I spent 45 minutes treating and explaining and when the time came to pay a consult they were all worked up and upset


Same with advocates sir.

Mother is still sick but out of danger for now. Aged and both kidneys not functioning properly and other problems.

This doctor was treating my mother for decades and known to us. We were ready to pay and asked for his bank account number to transfer the money. He was not ready to give that and insisting that we pay him with new notes.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 21 Dec 2016 15:52

Yagnasri wrote:
This doctor was treating my mother for decades and known to us. We were ready to pay and asked for his bank account number to transfer the money. He was not ready to give that and insisting that we pay him with new notes.

:shock:

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Yagnasri » 21 Dec 2016 16:28

Most of the problems of DeMo were because of people like him. No one is ready to deal in account payments etc even when there is no cash and even when you the other person has money and ready to pay into account. Same with wholesale Agri mandis also. No wholesale trader is ready to pay into the accounts of the farmers. Not mainly because the volume of money involved and due to possible tax implication etc, but mainly because they are not willing to do it.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby kapilrdave » 21 Dec 2016 16:34

^^ Genuine people will change far more quickly than we think.

Not so genuine people will take some time to adjust, take some assurances from gov as well, but change they will.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby SaraLax » 21 Dec 2016 17:11

asgkhan wrote:Modi-mian is busy giving speeches to the dhoti-clad, bhooka nanga gareeb shittizens, who are waiting for the mirage for their upliftment.

While I completely support demonitisation, I am not happy with the implementation. The road to hell is paved with good intentions. While the intention is laudable, the execution has been laughable !!


Well .. this is what this country is made of !!!!. asgkhan's MohdKav's and etc's. Eloquently Mis-leading statements are provided but basically seem to be people who want to keep rolling in a BM infested world even if the opposite means a far better economic future for their next generation ! but couch their intentions with in a set of carefully worded sentences indicating the opposite. Ofcourse this better economic future for your next generation simply doesn't apply if you are a member of the BM Holder community.

I like the idea but i don't like their implementation of the idea ...


Demonetization is one such an Idea where If secrecy of launch of idea is lost.... the whole Idea becomes useless (meaning every BM Holder would have done as much as he/she can .. to transfer his Black Money from the older demonetized set of notes to newer set of INR notes !!). This meant many things ... like actual printing of new 500s only after demonetization announcement - since otherwise the very act of printing new notes is a a good indicator of some upcoming action upon cash based economy. As clever, crooked-thinking and cunning as some of our Indian BM Holder citizens can be .... the government is also taking up the gauntlet thrown by these unscrupulous BM hoarding folks and is holding down these desperate BM holders from escaping the widening law & tax net.

To any person who has a proper sense of observation - it is quite visible that the NDA govt., Finance Ministry and RBI are discovering the newer steps & loopholes that the enlightened BM Holding citizens of India are exploiting to desperately hold on to their BM and upon discovery - the governing entities are coming up with various limits & PAN/Aadhar based Identification rules to either close down or monitor usage of such loopholes (from being exploited by BM holders). This is the reason why the government is announcing newer measures on handling of the old currency. The idea of inking the fingers upon executing first 4K of money exchange was one such a rule and it immediately took out those BM holder hired crowd of money exchangers from the lines outside the banks.

I often wonder how stupid .. the educated people can be and still whine about the ongoing implementation. Demonetization is a bitter medicine but is a temporary phenomenon and the digital modes of transactions are still very much open.

Whiners, Criers will anyway diss upon Modi (particularly lots of RoL's and RoP's) even is he sneezes.

Modi or his party BJP - are not going to gain in any manner by opting for Demonetization .. but it is their principle that a BM infested economy will marginalize the less financially stronger sections of the economy from purchasing wealth associated assets (whether movable or immovable) and hence the need to roll out demonetization .. which in reality is hitting many of the corrupt entities with in BJP too (as though BJP is a party consisting full of honest Indians), is hitting the core vote bank of BJP too and is inducing fear among the BM Holers across whole of India too.

No PM other than Modi has had the boldness to take up this very risky process of demonetization because he has seen how the poor and less-financially strong people are getting crowded out of the path to move up in prosperity and in acquiring wealth by the large amounts of untaxed BM sloshing around in the economy - that is inflating the prices of certain assets beyond the grasp of common man.
.

If at all any of you whiners & criers ... cry & whine again .. do it on the basis as to why we & our previous generations allowed this BM transactions based economy to happen in the first place, allowed it to strengthen its grip on daily Indian life and thus become too difficult to handle in current day and the various political parties who were actively involved in allowing this BM Economy to balloon into a big size. Whine & cry .. as to why you voted for them or even supported them in the past. Stop whining or Crying that Modi is giving a temporary dose of pain to you ..it is also for gaining a healthy economy with proper job growth - in future. Help if you can in some way or the other .... we all have to put up with the temporary troubles that DeMo has brought on us ... but it is not the end of life !!!.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Yagnasri » 21 Dec 2016 17:28

http://www.firstpost.com/politics/demon ... 63964.html

Many people shouted loudly when computers came into India. They shouted from 1991 to 1996 when PVNR tried to reform the economy. Now they are shouting. Every long-term change will face a lot of opposition when it leads immediate inconvenience and hurts entrenched interests.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Patni » 21 Dec 2016 17:35

RBI PRESS RELEASES

Link to PDF

Consequent to the announcement of withdrawal of Legal Tender status of banknotes of ₹ 500 and ₹ 1000 denominations from the midnight of November 8, 2016, the Reserve Bank of India made arrangements for supply of adequate quantity of banknotes in various denominations to the public through the banks.
Over the period from November 10, 2016 upto December 19, 2016, banks have reported that banknotes worth ₹ 5,92,613 crore have been issued to public either over the counter or through ATMs.
In this period, the Reserve Bank has issued to the banks and their branches, for distribution to the public, a total of 22.6 billion pieces of notes of various denominations of which 20.4 billion pieces belonged to small denominations of ₹ 10, 20, 50 and 100s and 2.2 billion belonged to higher denominations of ₹ 2000 and ₹ 500.
Ajit Prasad
Assistant Adviser
Press Release : 2016-2017/1602

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Sachin » 21 Dec 2016 18:00

MohdKav wrote:Anyhow money is being transfered from Co operative banks into fake accounts in PSB and Private Banks. There has huge outflow of money from Co-op Banks into private banks ( fake accounts )

Can you also let us know how fake KYCs can be arranged for these accounts as well? Without KYC, these accounts cannot be operated. In the case of co.op banks, even district, urban and state co.op banks can only try getting new currency based on the amount of which are there in accounts having valid KYC.

The sheer scale and societal participation in black money is unprecedented in comparisson to any other country. So keeping that in mind, do you think raids or arrests have happened in that scale?

Yes, we may be a nation/society of crooks, but I would like to wait for the official RBI figures to come out. I don't think any one in BR (how ever one sided) has said that this operation would be a 100% success. The only thing I can see is that banks have received huge deposits, which was kind of unprecedented. And there is also a well timed propoganda to some how prove that any money deposited in a bank automatically becomes "white money". That how ever may not be true, in a practical scenario.

A paltry 80 crore has been siezed all over India, while in cochin one agent itself has 189 crores with him

And those are paltry when compared to Rs.1080 crores which is lying in a locked condition in co.operative banks in Kerala alone. With even the state's finance minister threatening to scuttle the GST roll out. To be frank, it is the panic, contempt and derision of the whole movement by Kerala politicians, which makes me get a feeling that the operation has been at least 75% successful. So that makes me still take an approach of "wait & watch".


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