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Currency Demonetisation and Future course of Indian Economy

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Suraj » 07 Feb 2017 03:29

amitkv wrote:5Lakh is a very small amount and many small traders etc keep that in cash for day to day transactions. DeMo will inconvenience these folks the most.

If a one time report on their cash deposit is a huge inconvenience to them, they're free to do whatever they like to punish the government for that. All other sane small traders can simply show that they maintain cash account for basic operations.

But of course, with many of them, this will also expose previous 'oh I didn't know I had to report all this' income. After all, they did deposit the money - as opposed to convert it to new cash - so that means the cash that was deposited post DeMo was not their daily working capital.

GoI is making the process as streamlined and reasonable as possible. In the amount of time it takes to complain about inconvenience, the average trader can fill in the questionnaire they've been asked to fill out for large deposits.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby disha » 07 Feb 2017 05:24

amitkv wrote:5Lakh is a very small amount and many small traders etc keep that in cash for day to day transactions. DeMo will inconvenience these folks the most.


I would love to have the "small amount of 5 lakhs" as a daily day-to-day txn! That is equivalent to USD 60,000 (yes $60,000) kept on hand. That sir is a very very very very large amount.

How did I arrive at that number? Simple - 5lakhs/Rs.65 = 7600 USD x 8 (purchasing power parity) = USD 60k.

Which small trader in bodre bazaar, suryapet keeps that much on his hand? Definitely a swanky jeweler or textile merchant in an urban area. Like Mumbai or Chennai. But which small trader has Rs. 5 lakhs on hand? And at what risk - at the risk of being hands chopped by "rowdy elements"?

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Re: Currency Demonetisation and Future course of Indian Economy

Postby disha » 07 Feb 2017 05:28

amitkv wrote: BJP is working really hard to piss off it's middle class voter base with this tax terrorism.


I would as well say (irrespective of political allegiance) that you are working very hard to whine and bringing in all issues including kitchen sink and aliens in kitchen sink in order to do #Blow2Modi.

If there is something called whine terrorism., this is it, this is it and this is it.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby disha » 07 Feb 2017 05:33

Sigh - tyranny of the "internet hindu".

kapilrdave wrote:Well you forgot to mention "hindu fundamentalism" in your post this time. You can compensate this imperfection by invoking the "saffron terror" in your next post.


:rotfl:

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Re: Currency Demonetisation and Future course of Indian Economy

Postby ShauryaT » 07 Feb 2017 06:13

An interesting perspective, on why demonetization.
https://www.newslaundry.com/2017/02/06/connect-the-demonetisation-dots

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Suraj » 07 Feb 2017 07:00

Card, Aadhaar-enabled payments at all PDS, fertiliser depots soon
In a major push for cashless transactions, point-of-sale (PoS) machines for credit/debit cards as well as Aadhaar-based transactions will be installed at all fair price shops and fertiliser depots over the next few months.

In an interview to PTI, Finance Secretary Ashok Lavasa said over 170,000 PoS machines have already been installed at public distribution system (PDS) shops and more will be done in the next few months.

From April, take more than Rs 3 lakh in cash, pay equal amount in penalty
In a bid to check generation of black money, a steep penalty awaits those accepting cash in excess of Rs 3 lakh, beginning April 1, to settle any transaction.

A ban on cash transaction of more than Rs 3 lakh has been proposed in the Budget for 2017-18.

In an interview to PTI, Revenue Secretary Hasmukh Adhia said the penalty for doing cash transaction will be steep and the receiver will have to pay an amount equivalent to the cash received.

"Supposing you do a transaction of Rs 4 lakh in cash, then the penalty would be Rs 4 lakh. If you do a transaction of Rs 50 lakh, penalty would be Rs 50 lakh," he said, adding that the penalty will be levied on the receiver.

So, if someone buys an expensive watch for cash, it is the shopkeeper who will have to pay the tax, he said, adding that the provision is to deter people from doing large cash transactions.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby manjgu » 07 Feb 2017 07:38

a) i was talking to my CA and in one case a person has received notice of 19L having been deposited against his PAN no of which the person had no idea. turns out he was director in a company from which he resigned 10 years ago and the remaining directors used his PAN no to deposit cash. All petrol pumps, gas agencies have received notices. b) the quiz being asked is confusing as per my CA ..very leading questions answering them could lead u to benami Act etc. I could not get the whole picture given my piddly knowledge of accounts etc !

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 07 Feb 2017 07:43

amitkv wrote:5 Lakhs seems like too low a bar. I'm afraid IT dept. might end up catching a lot of small fish while big time wheeler dealers are let go. BJP is working really hard to piss off it's middle class voter base with this tax terrorism.

er if you think people who keep 5 lakhs in cash are "middle class" you will discover that not many people are middle class and their votes won't count for much - there's always Congress or AAP

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Re: Currency Demonetisation and Future course of Indian Economy

Postby habal » 07 Feb 2017 07:51

disha wrote:Sigh - tyranny of the "internet hindu".

kapilrdave wrote:Well you forgot to mention "hindu fundamentalism" in your post this time. You can compensate this imperfection by invoking the "saffron terror" in your next post.


:rotfl:


gentlemen, in my previous avatar on this forum, my only job here was to raise the morale of the 'internet hindus', be it India vs Australia cricket match or in doom & gloom pervasive many times during terror attacks. There used to be 10 consecutive doom & gloom posts and predominantly negative mood which had to be uplifted by one positive post. Also introduced the aspect of 'dharma: first time in brf discusions post which every 'internet hindu' started quoting from thereon.Brf attitudes whenever issues with USA came into picture was distinctly negative, each time mood went into doom & gloom and internet hindus needed much hand holding to come out of doom & gloom scenarios. Pattern was like this everyone comes online and makes a long post on what they see as the problem, no one cares or bothers to write about the solution. So a reader parsing through so many negative posts just falls into depression reading one-after-the-other negative & defeatist posts. It was important to break this cycle else people will start to blame India itself.

My issue with 'internet hindus' is they rarely step out of their comfort-zone to realize what another is saying. So you are hindu, inside a hindu family, go to hindu temple, do hindu poojas, and inside a hindu country and want to vote for BJP, which is a natural choice. Where is your Indian compromise, where have other minorities of India come into this picture. You have cut off all of them from your mindspace. Hey, maybe it may ultimately benefit you to understand what they are saying. Sometimes the Gods speak to us through most unlikely sources. So are the internet hindus going to raise their game or not. Or they will simply indulge in saffron terror and taunt with 'kitna hain' or boo hoo 'tu muslim hain so anti- modi' , 'you are evangelist agent of CIA'. Not everybody who speaks against demonitisation is anti-hindu.

brf posters whom I used to hold in high esteem like disha, loc gaganaviharin, always contributed in positive fashion and were so friendly but this one event has turned him against everybody who utters a word against demonitisation. It is so saddening It seems like someone has cast their evil eye on this forum.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby habal » 07 Feb 2017 08:16

amitkv wrote:Arun Jaitley's 2017 Union Budget raises a cause for worry

The fine print of the Finance Bill 2017 that lays out details of the 2017-18 Union Budget does not make for pleasant reading.

First, in search and seizure cases, the assessing officer does not have to provide a reason for the operation.

Worse, the officer can search charitable organisations, again without seeking permission from the principal commissioner as was the case earlier.

The fine print in the Finance Bill 2017, which will be tabled in Parliament, has more such incendiary proposals.


For example, one particularly draconian proposed amendment in the I-T Act permits the assessing officer to order attachment of the assessee’s property for six months after obtaining sanction from a senior officer.

Such wide discretionary powers can – and will – beget abuse.

Prime Minister Narendra Modi is instinctively against such abuse that amounts to tax terrorism and defeats the principle of maximum governance, minimum government. His officials in the finance ministry, however, are clearly playing to a different tune and a different conductor.

The prime minister must step in and remove these tax amendments – or accept responsibility for them along with the opprobrium.

Last year’s Union Budget had numerous rollbacks on pension funds, interest rates and EPF withdrawls. The finance ministry hasn’t learnt from those setbacks, which were deeply unpopular with the middle class.

The proposed amendments in the Finance Bill 2017, if enshrined in law, will - like Pranab Mukherjee’s retrospective tax law of 2012 - remain a blot on India’s tax legislation.


One of the reasons why I suspected demonitisation was that there was no attempt to clean the IT dept. So here we have finmin IAS babus drafting crap and putting in so many clauses for cheating businessmen, blackmailing and making money for themselves. So how will this help India ? This is proof that these were not priority areas for NDA and Modi ji. He has thus left management and micro-management to babus, who function corruptly.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Neshant » 07 Feb 2017 08:16

EswarPrakash wrote:
How would the govt. steal people's money from banks?

As opposed to hoarding cash and hiding it under their pillows?


Inflation is a confiscatory means through which wealth is stolen from the productive population. It's a fancy name for money printing or more crudely counterfeiting which is what a person would be accused of if he did the same.

The objective here would be not to preserve wealth in a medium which some entity be it govt of banksters can steal practically overnight through the above means.

It's a whole days discussion to go into details of the above. It will suffice to say that not 1 in a thousand persons understands how fiat money comes into existence nor who controls it's issuance and value thereof. This ambiguity exists for a reason.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby kapilrdave » 07 Feb 2017 08:44

Habal, your long rant not withstanding, it was you who brought swayamsevaks and hindu fundamentalism into DeMo discussion. When all logic failed you, you took secularism as refuge. Even in your last post you are talking about secularism in sugar coated words which has absolutely no relation with DeMo. You have a logical point on DeMo? Good. Put it up logically. No one will drag you to unrelated points. Problem starts when you make yourself vulnerable by invoking the widely condemned terms into the discussion. Trust me, you cannot win any argument on those lines. You have better chance of winning it in DeMo.

All this I cared to type only because I trust your words in last post that you are a well wisher of hindus and mot a genuine hindu hater. The moment I discover otherwise, I will stop.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby asgkhan » 07 Feb 2017 09:12

http://www.financialexpress.com/india-n ... re/540180/

The Withdrawal of high-denomination notes on the night of November 8 saw a sudden spike in instances of domestic violence over the next few weeks when men realised that their wives had saved money without their knowledge, an analysis of complaints at the country’s first One Stop Crisis Centre (OSCC) in Bhopal has revealed.
“Husbands threatened their wives, beat them and warned them of consequences like jail terms because they felt a loss of control over their wives,’’ said Sarika Sinha, regional director of Action Aid, an NGO that runs the OSCC ‘Gauravi’, in collaboration with the Public Health and Family Welfare department of the Madhya Pradesh government.
“The wives used to save money in the past, too, but it never came to light. Overnight, they became criminals in the eyes of their husbands,’’ said Sinha, referring to some of the victims who approached the OSCC in the government-run J P Hospital in Shivaji Nagar.


The toll-free crisis number received as many as 1,200 calls in November — it receives 500 calls per month usually — from women, out of which 230 needed counselling. Among those counselled, about 50% faced violence at the hands of their husbands due to demonetisation-related discord, the analysis revealed.
Citing the case of a 27-year-old woman, OSCC coordinator Shivani Saini said her husband drove her out of their home with their seven children on November 9, when he found out that she had R4,500 with her.
“The victim and her husband were provided counselling. He heard us out but is yet to change his mind. She is still at her mother’s place. The husband used to harass her before too, but never went to the extent of throwing her out,’’ said Saini.
In one instance, Saini said, a man bullied his wife and demanded R8,000 from the R10,000 she had saved, saying she would go to jail for “illegally keeping the money”. In some cases, the husband’s anger was aggravated by the sudden loss of his own daily wages, said Saini.
In another instance, a husband refused money to his wife for insulin shots for their 13-year-old daughter. The husband later sent the wife to her mother’s place after harassing her, added Saini.
“In many cases, husbands objected to the wives having saved money without their knowledge. Also, they did not return the exchanged currency to their wives,” said Saini.
Saini said that the centre spent a lot of time creating awareness among women about demonetisation and the changing rules. “It took nearly 40-45 days for things to normalise and for cases of physical violence to come down,” said Saini.
J P Hospital chief medical health officer Dr Veena Sinha said the centre is a joint initiative between the state government and the NGO. “We have provided them basic infrastructure and staff, but they have their own technical staff,’’ she said.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby TKiran » 07 Feb 2017 10:03

I think a lot of people are still confused and looking for answers to the following questions.

1. Why demonetization?
2. Who got benefit out of demonetization?
3. Who got affected by this demonetization?

My take for the above questions is,
1. To eliminate FICN.
2. Those who were using high denomination notes.
3. Pakistan and China.

The demonetization is requested by the people who were using high denomination notes, as that was the only solution for this menace of FICN. Pakistan started it, but China lapped it up with technical know-how and got the Indian economy by balls and told Modi to import more Chinese stuff. He doubled the trade deficit in two years,

But they were black mailing, to stop defense cooperation with USA. They assured him that they will give us jf bunders. And other defence stuff, which they are giving to Pakistan so that we can effectively stop Paki terrorists entering India, but 19 Indian soldiers were killed, which was not the intended.

So Modi has to show that he is doing something, so he reluctantly agreed to surgical strikes, and was very angry with eleven.

In the meantime, all the 5% of the people of Republic of India who do transactions in high denomination notes have solidly pledged their allegiance to Modi saying that, why do you worry about 95 % of people who have never seen 500 or 1000, go for demonetization, we will support you.

Now Modi has aasoon in his eyes that he has support of the 5% of the population of India, who are elite, he gets emotional, and does the unthinkable demonetization. But to show to the 95% people who have never seen or touched 500 or 1000 rupee notes, he says that all the black money horders are effed. A ride or two here and there, all the 95% of the people are happy. All the remaining 5% of people convert the notes. They are also happy.

Now China and Pakistan lost a handle to screw Indian economy, they are unhappy.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby hanumadu » 07 Feb 2017 12:55

Citing the case of a 27-year-old woman, OSCC coordinator Shivani Saini said her husband drove her out of their home with their seven children on November 9, when he found out that she had R4,500 with her.


Any guesses as to the faith of the people above? The rage over loss of control over wife sounds suspiciously of men belonging to a certain religion.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby hanumadu » 07 Feb 2017 13:05

TKiran wrote:I think a lot of people are still confused and looking for answers to the following questions.

.....

Now China and Pakistan lost a handle to screw Indian economy, they are unhappy.


Amazing insight. But what were you doing all these days? You could have told this before you got the suspension for saying something totally different to what you are saying now. Perhaps we could have done something and rolled back the demo. Now its too late and demo is done and dusted. Sigh.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby JayS » 07 Feb 2017 13:08

shiv wrote:
amitkv wrote:5 Lakhs seems like too low a bar. I'm afraid IT dept. might end up catching a lot of small fish while big time wheeler dealers are let go. BJP is working really hard to piss off it's middle class voter base with this tax terrorism.

er if you think people who keep 5 lakhs in cash are "middle class" you will discover that not many people are middle class and their votes won't count for much - there's always Congress or AAP


Very True. If 5lakh cash holder is considered "middle class" I will have to classify myself as BPL. :lol: :lol:

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Re: Currency Demonetisation and Future course of Indian Economy

Postby TKiran » 07 Feb 2017 14:41

hanumadu wrote:
TKiran wrote:I think a lot of people are still confused and looking for answers to the following questions.

.....

Now China and Pakistan lost a handle to screw Indian economy, they are unhappy.


Amazing insight. But what were you doing all these days? You could have told this before you got the suspension for saying something totally different to what you are saying now. Perhaps we could have done something and rolled back the demo. Now its too late and demo is done and dusted. Sigh.


I have been consistently saying the same, you can see my messages from 9th November. I will dig up my own posts, in fact I copyrighted this argument that, demonetization has nothing to do with black money, it was done to eliminate FICN

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Re: Currency Demonetisation and Future course of Indian Economy

Postby hanumadu » 07 Feb 2017 15:36

TKiran wrote:
hanumadu wrote:
Amazing insight. But what were you doing all these days? You could have told this before you got the suspension for saying something totally different to what you are saying now. Perhaps we could have done something and rolled back the demo. Now its too late and demo is done and dusted. Sigh.


I have been consistently saying the same, you can see my messages from 9th November. I will dig up my own posts, in fact I copyrighted this argument that, demonetization has nothing to do with black money, it was done to eliminate FICN


Yes please do.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby nirav » 07 Feb 2017 15:48

TKiran wrote:I think a lot of people are still confused and looking for answers to the following questions.

1. Why demonetization?
2. Who got benefit out of demonetization?
3. Who got affected by this demonetization?

My take for the above questions is,
1. To eliminate FICN.
2. Those who were using high denomination notes.
3. Pakistan and China.

The demonetization is requested by the people who were using high denomination notes, as that was the only solution for this menace of FICN. Pakistan started it, but China lapped it up with technical know-how and got the Indian economy by balls and told Modi to import more Chinese stuff. He doubled the trade deficit in two years,

But they were black mailing, to stop defense cooperation with USA. They assured him that they will give us jf bunders. And other defence stuff, which they are giving to Pakistan so that we can effectively stop Paki terrorists entering India, but 19 Indian soldiers were killed, which was not the intended.

So Modi has to show that he is doing something, so he reluctantly agreed to surgical strikes, and was very angry with eleven.

In the meantime, all the 5% of the people of Republic of India who do transactions in high denomination notes have solidly pledged their allegiance to Modi saying that, why do you worry about 95 % of people who have never seen 500 or 1000, go for demonetization, we will support you.

Now Modi has aasoon in his eyes that he has support of the 5% of the population of India, who are elite, he gets emotional, and does the unthinkable demonetization. But to show to the 95% people who have never seen or touched 500 or 1000 rupee notes, he says that all the black money horders are effed. A ride or two here and there, all the 95% of the people are happy. All the remaining 5% of people convert the notes. They are also happy.

Now China and Pakistan lost a handle to screw Indian economy, they are unhappy.



You should start writing fiction.AAPtards and Seculars will lap it up and you could be the next Chetan Bhagat.
Chance to get good amount of FaceTime on NDTV too.

Go for it I say.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby manjgu » 07 Feb 2017 19:13

my CA has been complaining of harassment from IT authorities... says things are going back to inspector raj !! the IT notice quiz is a very well structured to catch people in a ambush...

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 07 Feb 2017 19:27

TKiran wrote:
My take for the above questions is,
1. To eliminate FICN
2. Those who were using hoarding high denomination notes.
3. Pakistan and China.

-there. Corrected.

In retrospect - seeing that the govt has set a limit on cash funding of political parties - it seems to me that unaccounted election funding was another target of demonetization.

Personally I would like to see this backed up with simultaneous state and central polls. Political parties and donors might favour this because they will not have to donate twice

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Gus » 07 Feb 2017 19:32

If these measures work and change the way parties contest elections - that would be huge. One of the most vicious cycle of our system is this self selection of corrupt people who alone can contest elections because unaccounted money is needed and they promptly have to generate more unaccounted money for running party and next election.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 07 Feb 2017 19:36

JayS wrote:Very True. If 5lakh cash holder is considered "middle class" I will have to classify myself as BPL. :lol: :lol:

The only time I have held more than 5 lakhs in cash ever in my life was when a childhood friend of mine gave me a bag with 7 lakhs in it (500s and 1000s) to deliver to his sister in Bengaluru. I actually carried the bag through airport security in my hand baggage and delivered it. This friend has made a huge pile in black, through a legitimate business and probably not paying much, or any, tax and cultivating the most deeply corrupt friends in local government. I have not heard from him since demonetization. He is the sort of guy who will have bank manager friends who might have helped him convert or deposit.

That said this chap is the opposite of Modi in some ways. He too came up from poverty,his parents coming as refugees from Pakistan without a single paisa, and settling in a refugee camp. He feels he owes his education to my late father who used to help him with science subjects in school. Of course he purchased a whole lot of prime property - and may not have had more than a few tens of lakhs in cash. He is the sort of guy who would probably dismiss the loss of cash as irrelevant and carry on with life - thanking providence for the good things he got.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 07 Feb 2017 19:38

Gus wrote:If these measures work and change the way parties contest elections - that would be huge. One of the most vicious cycle of our system is this self selection of corrupt people who alone can contest elections because unaccounted money is needed and they promptly have to generate more unaccounted money for running party and next election.

I suspect the anger of Mayawati, Mamata and the Shiv Sena are related to cash "collection" (not donation) and no plan B

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Re: Currency Demonetisation and Future course of Indian Economy

Postby svenkat » 07 Feb 2017 20:34

Image


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Re: Currency Demonetisation and Future course of Indian Economy

Postby Dipanker » 07 Feb 2017 20:38

shiv wrote:In retrospect - seeing that the govt has set a limit on cash funding of political parties - it seems to me that unaccounted election funding was another target of demonetization.



Unfortunately this reduction of limit of anonymous donation from Rs 20,000 to Rs 2,000 is not likely to lead to any greater transparency other than increasing the ledger entry of anonymous donation by 10 fold.

It practically changes nothing at all.

If govt. is serious about political reform, first and foremost it must completely eliminate anonymous donations i.e. require all donations to be transparent recording the names and addresses of donors, secondly make all transactions digital, that should be a good beginning in introducing political reform.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby ShauryaT » 07 Feb 2017 20:45

^I think the reduction is right intended and practical progress. To make it effective, what should be done is to have the percentage of anonymous to be less than 10% of contributions, if more then those have to be declared regardless of donation amount. Such a step will allow for the practical necessity to keep anonymous donations but with the idea to prevent any abuse.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Prasad » 07 Feb 2017 21:28

Even if you ensure all donations to parties can be digitally tracked, it still doesn't ensure that a businessman wont hand over a bunch of cash in suitcases that are then used by party cadres for various expenses including giving it away to voters close to elections. How will that be tracked and stopped? Sure in the larger scheme of things it might seem small but it is still significant.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 07 Feb 2017 21:53

Dipanker wrote:If govt. is serious about political reform, first and foremost it must completely eliminate anonymous donations i.e. require all donations to be transparent recording the names and addresses of donors, secondly make all transactions digital, that should be a good beginning in introducing political reform.

The plan according to Jaitley is to have a donor businessman pay the RBI whatever amount he wants to buy "political bonds". He can then give those bonds to as many political parties as he likes because the end point of donation will be anonymous (i.e unknown to the RBI) but known only to the political party/parties. They will need to cash in those bonds within one month. Parties are supposed to account for all their income and expenses.

Obviously this scheme can have many loopholes.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Suraj » 07 Feb 2017 23:33

Everything's capable of having loopholes exploited. However, the political bond scheme effectively makes the entire large political donation system white, because the government gets access to all the cash, and the donor gets political bearer bonds. Shiv, you might remember bearer bonds from the old days, from before there was a decent bond market in India. The political parties themselves have to exchange the bonds at banks for cash. This is essentially a scheme for cash-less political operation.

Removing anonymous donations is not any sort of magic bullet. It'll just generate a cottage industry of fake donors, just as one argues that small donations will simply generate X times greater donation records. Ultimately, all schemes are a balance of cost-benefit. No one single thing is going to 'fix' it magically, and it's quite naive to presume it will. It takes a combination of carrot and stick options.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby JayS » 08 Feb 2017 00:20

Hearing Modi's speech in LS. He was trolling Opposition like crazy. Around 38min, he made some comments on DeMo. He said, don't think it was done in hurry. It was thoughtfully planned for after-Diwali period.

https://www.youtube.com/watch?v=JJ4puFg29oM

Hear it and Have fun.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Suraj » 08 Feb 2017 05:01

Additional DeMo data:
Rs 6.78 lakh cr remonetised, Rs 9.1 lakh cr in circulation: Govt
In the ongoing process of remonetisation, banknotes worth Rs 6.78 lakh crore returned to the formal banking system between November 10 and January 13, taking the total currency in circulation to Rs 9.1 lakh crore, the government said on Tuesday.

In a separate reply, when asked how much old Rs 500 and Rs 1,000 notes (SBNs) were deposited/exchanged upon being de-legalised, Meghwal said specified bank notes (SBNs) worth Rs 12.44 lakh crore were returned to currency chests of RBI by December 10, 2016.

"Reports have been submitted by banks to Reserve Bank regarding the amount deposited in the banks as on December 30, 2016. The data obtained in this regard would need to be reconciled with the physical cash balances to eliminate counterfeit notes, accounting errors/possible double counts etc after which only the final figure will be arrived," he added.

Meghwal also informed that a total of 94,899.23 million pieces of all denomination bank notes were in circulation as on November 8, 2016. While, 59,668.97 million pieces of circulating coins of all denominations were minted and lifted by RBI during 2008 to November 8, 2016.

In effect, the original numbers were:
~20 lakh crore currency in circulation
~15.6 lakh crore in 500/1000 notes that were demonetized
Today:
9.1 lakh crore in circulation
6.78 lakh crore remonetized

So the money circulatory base has been more than halved to just 45% of the original base.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Karthik S » 08 Feb 2017 05:21

Any clue on when NM will act on benami property and gold holdings. I though it will follow right after Dec 31.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby hanumadu » 08 Feb 2017 06:21

Suraj wrote:Additional DeMo data:
Rs 6.78 lakh cr remonetised, Rs 9.1 lakh cr in circulation: Govt
In the ongoing process of remonetisation, banknotes worth Rs 6.78 lakh crore returned to the formal banking system between November 10 and January 13, taking the total currency in circulation to Rs 9.1 lakh crore, the government said on Tuesday.

In a separate reply, when asked how much old Rs 500 and Rs 1,000 notes (SBNs) were deposited/exchanged upon being de-legalised, Meghwal said specified bank notes (SBNs) worth Rs 12.44 lakh crore were returned to currency chests of RBI by December 10, 2016.

"Reports have been submitted by banks to Reserve Bank regarding the amount deposited in the banks as on December 30, 2016. The data obtained in this regard would need to be reconciled with the physical cash balances to eliminate counterfeit notes, accounting errors/possible double counts etc after which only the final figure will be arrived," he added.

Meghwal also informed that a total of 94,899.23 million pieces of all denomination bank notes were in circulation as on November 8, 2016. While, 59,668.97 million pieces of circulating coins of all denominations were minted and lifted by RBI during 2008 to November 8, 2016.

In effect, the original numbers were:
~20 lakh crore currency in circulation
~15.6 lakh crore in 500/1000 notes that were demonetized
Today:
9.1 lakh crore in circulation
6.78 lakh crore remonetized

So the money circulatory base has been more than halved to just 45% of the original base.


Yayyy!!!! First tangible success of DeMo. It will only get better - vastly - from here on.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 08 Feb 2017 08:10

Karthik S wrote:Any clue on when NM will act on benami property and gold holdings. I though it will follow right after Dec 31.

His warnings on this subject in his parliament speech were dire - I watch the entire 90 minutes. He sounds like a man who does not give a damn about re election as long as he can kick the corrupt.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby shiv » 08 Feb 2017 08:27

Suraj wrote:Everything's capable of having loopholes exploited. However, the political bond scheme effectively makes the entire large political donation system white, because the government gets access to all the cash, and the donor gets political bearer bonds.

What I found fascinating was Jaitley's wry smile in interviews where he said the bond scheme would protect the donor from being targeted politically. I got the impression that there are some big ticket donors who hedge their bets and pay more than one party and bonds seem ideal for this.

That aside - if the government gives a tax incentive for, say, digital payment to purchase bonds - this would dovetail well with the restriction of cash spending more than 3 lakhs. Parties that want to distribute free laptops or cycles will not be able to show cash purchases over 3 lakhs. In the past I am certain these purchases were made in cash but items like laptops, TVs and cycles can be traced back to suppliers who can then be scrutinized for receiving large cash payments. This will be called hounding and harassment - but then we could all choose a libertarian life over nation state.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby TKiran » 08 Feb 2017 08:56

shiv wrote:
Karthik S wrote:Any clue on when NM will act on benami property and gold holdings. I though it will follow right after Dec 31.

His warnings on this subject in his parliament speech were dire - I watch the entire 90 minutes. He sounds like a man who does not give a damn about re election as long as he can kick the corrupt.


Shiv Sir, NM is confident, but that doesn't mean he is not corrupted by power. Year after year he is spending more and more, just to make sure that he gets back to power. He has not taken any steps to boldly reform the structural weakness in economy, nor is he able to articulate any flexing of muscle militarily, which is the need of the hour. Just watching his actions which are exactly opposite to what he says would clearly indicate that he got corrupted with power.

Nothing wrong with it per se. Certainly better than the previous 10years, but not as nationalistic as PVNR or IG. Certain events in the recent past have boosted his confidence, actually he is not able to see through the haze.

With the kind of mandate he got from the people, by this time he should have made military inroads into PoK by this time. But he is sticking on to his kursee. He doesn't know rajadharma. Watch the movie "gautamiputra" Shatakarni, you will get the exact point I am trying to emphasize.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Marten » 08 Feb 2017 08:59

TKiran, you are trolling. Pure and simple as that.
Take your takleef to your family WhatsApp group.


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