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Currency Demonetisation and Future course of Indian Economy

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disha
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Re: Currency Demonetisation and Future course of Indian Economy

Postby disha » 15 Jan 2017 00:57

ShauryaT wrote:The dilution of the autonomy of the RBI, first with the committee approach with finance ministry on the rate setting committee and with the governor with only a vote as a tie breaker and now this direct appointment of an officer to coordinate currency management. The approach is clearly statist and not towards building of institutions. The loss of transparency post Dec 10 also does not instill confidence.

'Humiliated' By Post-Notes Ban Events, RBI Staff Write To Urjit Patel


Next time., please warn us before posting links from rNDTV. rNDTV is mostly a "fake news" website controlled by the US State Dept. If you do not believe., just check out the parties they throw for the incoming and outgoing US diplo-mats.

Anyway., coming to the point:

1. That is a letter any union can write
2. Any union can be formed by 9 or more employees. I do not know what the leftist unions does., but sure sounds like a cluster funk.
3. This union or union of unions or whatever combination of RBI employees they say they represent can always shake their collective booties or heads and call the fin min or GOI deplorable (last used by Hick Clinton)
4. To their letters., nobody else gives a funk and if it is brought out from the stables of rNDTV., all we can say is "it is deplorable and the reputation of the dented and painted unions is dented beyond repair"

In short., non-news.
Last edited by disha on 15 Jan 2017 01:18, edited 1 time in total.

UlanBatori
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Re: Currency Demonetisation and Future course of Indian Economy

Postby UlanBatori » 15 Jan 2017 01:01

Re: Arrbee Eye.
Remember that the prior Guvnor His Excellency Prophejar-ul-Chicagoi was begged to bring down interest rates, and haughtily held on to ridiculously high rates? Thereby hammering the ability of desi small shops to be competitive with the WAr Malts coming in with capital that cost 2% or 0.3% in America?

Well.... a Quarter after he is gone, interest rates are down and coming further down in India. People can better afford homes, and put out capital to do bijnej. No wonder ArrBeeEye Baboon are upset. India is on the move despite them.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby UlanBatori » 15 Jan 2017 01:03

An oh! sure, it is terrific entertainment to see someone with a pompous attitude getting to smell the ground close up.

Latest indicators of Economic Collapse:
1. Dowry pmts down 80%. :((
2. Bride burnings down 73.2% due to collapse of retail kerosene market (outside ration system which requires Aadhar).
3. Loan sharks/hundi vyapar down 52% due to lack of 1000-re notes and esp. Made in Pakistan notes.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby sudarshan » 15 Jan 2017 04:11

I think a lot of the demonetization critics are simply miffed that Modi got away with it. All the doomsday predictions aren't panning out, this silly chai-wala who knows nothing about economics did something, the very thought of which would make the (self-proclaimed) economics experts shudder in horror. And the silly chai-wala simply had luck on his side. Now this un(Harvard)educated chai-wala who got lucky once, thinks he actually knows how a modern economy works!! Imagine the gall!!! Fools rushing in where angels fear to tread, and all that.

Saala baccha ek baar kuch kar diya, aur ab samajta hai ki wohi is economics-weconomics ko janta hai.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby hanumadu » 15 Jan 2017 06:20

sudarshan wrote:I think a lot of the demonetization critics are simply miffed that Modi got away with it.


A lot of demonetization critics are commie mofos. They are worried if DeMo is considered a success, it will be a Modi govt again in 2019.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Pratyush » 15 Jan 2017 08:56

kiranA wrote:
Pratyush wrote:Kiran I had asked you for 10 year data and wholesale farm prices of agricultural produce in the market for us to understand true effect of demonitasition. We have not yet seen this exercise from you. Yet we keep on seeing verbose Post demanding empathy and claiming huge disruption and millions of job losses.

Please let us have hard data with supporting evidence of agricultural collapse before we have a discussion on other topics.


Sorry I dont run a data/statistical service for your benefit. Fetch your own data.


All you have to do is look at newspaper articles for the last 10 years with the keyword bumper harvest. The price points will become clear.

But since you don't want to do this you want your words to be taken as gospel truth. Please understand that BRF dosent work this way. Before any point is accepted it has to be supported by hard data.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby sdas1645 » 15 Jan 2017 09:06

hanumadu wrote:
sudarshan wrote:I think a lot of the demonetization critics are simply miffed that Modi got away with it.


A lot of demonetization critics are commie mofos. They are worried if DeMo is considered a success, it will be a Modi govt again in 2019.
It is already a huge huge success. 85% of the notes in circulation were recalled and not a murmer of protest in the streets. What more proof do we need?

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Re: Currency Demonetisation and Future course of Indian Economy

Postby GShankar » 15 Jan 2017 09:11

I don't know about NOT being murmur of protests in streets. Seems like there are a quite a few protests all over the country. Example - human chain across kerala, many agitations in gujarat. Many seem organized but there will definitely be a few real ones.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Dasari » 15 Jan 2017 09:48

kiranA wrote:Just one data point I have read recently - vegetable prices collapsed by 14% in December - pretty much validates what I said. Note that govt data comes only from white economy and biased for urban. And if 14% is loss taken by retailer , the farmer has likely taken a higher hit. That alone validates millions lost income and the rest are its corralaries. Ofcourse the direct deaths are most shameful as country witnessed it elderly, newborn infants, women collapsing to death as they have been dragged to long lines to get their own hard earned money by their own prime minister.


At least pick a subject where you can support your claims. Vegetable prices are the most fluctuating commodities of all. All my school years I did the vegetable shopping for my family, and know very well how the prices fluctuate. In August 2016, vegetable prices across the board declined more than 50%. You can compare it with previous month or previous year, it doesn't matter. I've the figures to compare the prices, Tomatoes sold for Rs 5/kg then and they are at least Rs 10/kg now. This simply proves your lack of understanding of the vegetable prices or desperation to show your bias against demonetization.

Looking at mind boggling crowds at Railway stations and bus depots and all time record footfalls across Vizag and surrounding places, I'm yet to find any evidence of economic collapse that you keep hammering. I'm open to look at any evidence as I personally expected a dip in demand for a 3 month period before it takes off for good. Please post hard facts, not some wishful guessing.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby A_Gupta » 15 Jan 2017 10:16

It is natural that there be some overall economic disruption because of demonetization. The question is how much, and I think everyone is looking for hard indicators, not just anecdotes, of how disruptive it has been. We're also looking for hard indicators of new trends if there are any, such as growth in electronic payments or increase in the income tax base.

I have come to agree with a previous poster that any excessive rhona-dhona on behalf of third parties, like kisans, rural people, poor, etc., without hard data has one proper response only:

Kithna gaya?

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Re: Currency Demonetisation and Future course of Indian Economy

Postby srin » 15 Jan 2017 10:39

The sub-text is a lot larger than economic disruption and how much someone lost.

Our society had a wink-wink, nudge-nudge relationship with corruption. Sales without bills, cash component in real estate deals, a rich relative keeping suitcase of cash in your house (it happened to us some 15yrs ago), schools taking admission fees in cash - all okay. Those who hid the income used to be considered as smart guys who beat a cruel system. Usual justification was - politicians are crorepathis and corrupt, so why should I pay full taxes.
No longer true. Atleast in my social circle, it is gradually changing to view hiding income as what it is - it is a criminal activity. It is no longer a "blessed" activity. Now, a lot more people are going to insist on paying school fees by cheque, pay the cable guy with paytm and so on. Cash and income-hiding is now getting treated with contempt. It is the social stigma that is going to force changes, not the laws.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby A_Gupta » 15 Jan 2017 11:06

^^^ srin, I agree with you; but since the effects making corruption socially unacceptable is not directly measurable, we'll have to wait and see. I think reduced tolerance for corruption will eventually show up in the economic indicators, including the global competitive index, increased tax base and tax revenues, and so on.

I should clarify: anecdotal evidence is most welcome, but one should not generalize from anecdotes to the entire economy.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Gus » 15 Jan 2017 11:52

I know atleast one person who switched from B to W on his pending business venture. We talked about it and he said that it is not worth risk anymore. He's a 'good guy', professional work, but to keep abreast of competition he had to do stuff..That was his excuse..That he had to grease palms of many people and if he did not do evasion, his margins will be affected , affecting his next venture etc.

People want to come out of the negative cycle of poor govt performance - cheating citizens and move to positive cycle of performing govt - honest citizens...

There is change..Quantifying it will be impossible now, but definitely there is a change - which needs to be strengthened and not allowed to regress back

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Re: Currency Demonetisation and Future course of Indian Economy

Postby A_Gupta » 15 Jan 2017 14:50

Consumer Price Index, and Food Inflation:
http://in.reuters.com/article/india-eco ... NKBN14X0A3
India's retail inflation hit a two-year low in December as businesses resorted to price discounting to boost flagging sales following the government's cash crackdown, fuelling hopes of an interest rate cut by the central bank.

Consumer prices rose by an annual 3.41 percent last month, their slowest pace since November 2014, government data showed on Thursday. Economists surveyed by Reuters had expected prices to rise 3.57 percent year on year, compared with a 3.63 percent gain in November.

Annual retail food inflation eased to 1.37 percent last month from a revised 2.03 percent in November, helped by lower prices of vegetables and pulses.


But one must also place this in a global context:
http://www.livemint.com/Politics/Y4wh07 ... 6-FAO.html
Global food prices fall for fifth straight year in 2016: FAO

In 2016, Food and Agriculture Organisation’s global food price index averaged 161.6 points, 1.5% below the 2015 level, and nearly 30% lower than that in 2011


Nevertheless, let us ascribe all of this to demonetization.

Let's look back to October 2016:
http://www.thehindubusinessline.com/eco ... 349204.ece
Aided by lower food inflation, especially vegetables, the retail and wholesale price inflation indices softened in October, providing some relief to the common man. The consumer price index-based inflation for October came in at 14-month low of 4.20 per cent.
....
Under retail inflation index, food articles — which has 47 per cent weightage in the overall index —inflation in October came in at 3.32 per cent .This was lower than food inflation of 5.25 per cent in October 2015 and 3.96 per cent in September 2016.


There is some info. relevant to the fall of prices of vegetables:
In WPI {Wholesale Price Index}, vegetables witnessed deflationary pressures and was recorded at (-)9.97 per cent in October.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby A_Gupta » 15 Jan 2017 14:56

Forbes informs us that WPI {Wholesale Price Index} is not the right vehicle to look for demonetization effects.
http://www.forbes.com/sites/timworstall ... ac69f1d969

This is from mid-December.

I mention it because it has some vegetable-price info:
Data released by the Department of Industrial Policy and Promotion on Wednesday showed food inflation decelerated significantly to 1.54% in November from 4.34% a month ago prices of vegetables (-24.1%) dropped drastically.


Forbes however, ascribes it to increased production:
You'll recall that 6 and 8 months ago the headlines were all about the soaring prices of pulses and tomatoes? Wondrous how markets work, isn't it? Farmers see prices soaring, realise that more profit can be made by planting more, being a bit more careful about weeding, they apply a bit more fertiliser perhaps, then 6 months later the second crop is larger and food prices drop back again. These markets things really do work. Hurrah!

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Re: Currency Demonetisation and Future course of Indian Economy

Postby A_Gupta » 15 Jan 2017 15:03

Here is the Ministry of Commerce & Trade discussion of the WPI for November 2016:
(PDF) http://www.eaindustry.nic.in/cmonthly.pdf

The index for 'Food Articles' group declined by 1.0 percent to 276.1 (provisional) from 278.8 (provisional) for the previous month due to lower price of fruits & vegetables (7%), moong and masur (4% each), urad (3%), maize (2%) and arhar and condiments & spices (1% each). However, the price of ragi (20%), gram (10%), coffee (10%), wheat (5%), poultry chicken and barley (4% each) and bajra, fish - inland, tea, fish - marine, egg and jowar (1% each) moved up.


Notice that there is no uniform drop of prices here. Prices of some commodities went up.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby UlanBatori » 15 Jan 2017 15:11

Fish went up? That's a classic cash-only business, isn't it? My vast knowledge of the subject comes from watching the movie "Chemeen".

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Primus » 15 Jan 2017 19:24

kiranA wrote:
Pratyush wrote:Kiran I had asked you for 10 year data and wholesale farm prices of agricultural produce in the market for us to understand true effect of demonitasition. We have not yet seen this exercise from you. Yet we keep on seeing verbose Post demanding empathy and claiming huge disruption and millions of job losses.

Please let us have hard data with supporting evidence of agricultural collapse before we have a discussion on other topics.


Sorry I dont run a data/statistical service for your benefit. Fetch your own data.


A pig with a bow-tie is still a pig. Trolls with a pretense of 'insight and facts'' are still trolls.

Mods please ban this guy already!

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Dipanker » 16 Jan 2017 04:31


Economy to revive from demonetisation setback by June, says govt


The Narendra Modi government expects the economy to overcome the effects of demonetisation and take the path to revival by June 2017 as it believes that it has “crossed the hump” with more than Rs 10 lakh crore of new money pumped into the market and bank withdrawals already matching the money deposited each day.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Neshant » 16 Jan 2017 08:21

Its a slippery slope once the power to control peoples' earnings & savings is entirely in the hands of a few. (i.e. govt, banksters, corporations)
Its important to understand the issue and consequences of demonetization prior to endorsing your support for it.
This dude focuses a little too much on just Bitcoin (as no doubt he's a holder of the currency).
But the real discussion should be about decentralized money of which crypto-currencies are a part of.

___

Andreas Antonopoulos - The Death of Money - PART 1/2


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Re: Currency Demonetisation and Future course of Indian Economy

Postby atamjeetsingh » 16 Jan 2017 09:17

sudarshan wrote:I think a lot of the demonetization critics are simply miffed that Modi got away with it. All the doomsday predictions aren't panning out, this silly chai-wala who knows nothing about economics did something, the very thought of which would make the (self-proclaimed) economics experts shudder in horror. And the silly chai-wala simply had luck on his side. Now this un(Harvard)educated chai-wala who got lucky once, thinks he actually knows how a modern economy works!! Imagine the gall!!! Fools rushing in where angels fear to tread, and all that.

Saala baccha ek baar kuch kar diya, aur ab samajta hai ki wohi is economics-weconomics ko janta hai.


Thats what is the issue with liberal and intellect class of India. They wont credit hard work and micro level understanding of so called chai wala. He didnt went to any named & famed university so its just his luck which is working out.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby chetak » 16 Jan 2017 12:16

^^^^^^^

the poisonous alt left, so called "liberals" are at once panicked and dejected.

The commies/naxals have lost the plot and more importantly, their control over the narrative which is something that they enjoyed with untrammeled and absolute authority that was uncontested over the decades.

their intellectual cadres and icons have lost relevance as ordinary folks have increasingly rejected their dominance and are now very strongly asserting themselves across the board to take back the control/narrative so maliciously usurped by these commies/naxals.

this rejection of the commies has become a uncoordinated global movement that has fast gathered steam and washed away the parasitic commies/naxals and their failed ideologies out of the public domain and reduced these preaching and pontificating marxist morons to their true status which is that of an irrelevant and prehistoric social neanderthals who have lost their place at the public trough where they previously fed to their heart's content, sated and corpulent, at the cost of the public exchequer which they often (mis)appropriated for their own personal use whilst depriving the many millions who were taxed and hounded into submission.

Since they cannot blame the mango man, Modi is their focus of blame and targeted ire. They will never introspect and ever find fault with how they have behaved over decades and how this behavior has led to their almost complete irrelevance today.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby A_Gupta » 16 Jan 2017 15:39

A_Gupta wrote:Here is the Ministry of Commerce & Trade discussion of the WPI for November 2016:
(PDF) http://www.eaindustry.nic.in/cmonthly.pdf

The index for 'Food Articles' group declined by 1.0 percent to 276.1 (provisional) from 278.8 (provisional) for the previous month due to lower price of fruits & vegetables (7%), moong and masur (4% each), urad (3%), maize (2%) and arhar and condiments & spices (1% each). However, the price of ragi (20%), gram (10%), coffee (10%), wheat (5%), poultry chicken and barley (4% each) and bajra, fish - inland, tea, fish - marine, egg and jowar (1% each) moved up.


We now have the December report as well (same URL, I don't know where they archive the old reports)
The index for Food Articles group declined by 2.2 percent to 270.1 (provisional) from 276.1 (provisional) for the previous month due to lower price of fruits & vegetables (9%), arhar (6%), masur and urad (5% each), moong (4%), gram (2%) and poultry chicken (1%). However, the price of ragi (4%), jowar and wheat (3% each), bajra (2%) and egg, barley, pork, condiments & spices, tea and fish - inland (1% each) moved up.


So, from October to November to December
Fruits & Vegetables --> -7% --> -9%
Moong --> -4% --> -4%
Masur --> -4% --> -5%
Urad --> -3% --> -5%
Gram --> -10% --> +2%
Ragi --> +10% --> +4%
Wheat --> +5% --> +3%
Poultry Chicken --> +4% --> -1%
Eggs --> +1% --> +1%

To me, I'd guess these price variations are more to do with supply side issues than with demonetization-caused demand issues.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Singha » 16 Jan 2017 18:45

Atm limit raised to 10k

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Re: Currency Demonetisation and Future course of Indian Economy

Postby UlanBatori » 16 Jan 2017 20:09

What is the normal mango limit on ATM? Can't imagine that many ppl hold more than say 50K in checking account unless it is for major expenses, hain? You get only 4% interest AFAIK. So 10K seems like the usual limit? That's like 147 dolah todin, maybe 200 dolah in days when rupee wasn't so low. That's about the limit on US ATMs I believe, unless one has some special dispensation like Pretty Woman or James Bond, hain?

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Re: Currency Demonetisation and Future course of Indian Economy

Postby sdas1645 » 16 Jan 2017 20:17

Seems like the small traders are going back to cash now that cash is freely available for small transactions and this is not good. Already the 2 med shops that were offering pos in my locality are now saying that pos are not working and cash only. I think we are going back wards here. I think that the govt has panicked

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Kakkaji » 16 Jan 2017 21:35

sdas1645 wrote:Seems like the small traders are going back to cash now that cash is freely available for small transactions and this is not good. Already the 2 med shops that were offering pos in my locality are now saying that pos are not working and cash only. I think we are going back wards here. I think that the govt has panicked


I think the GOI will impose a 'fee' on large cash withdrawals. That will make using cash more expensive than using digital

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Lilo » 16 Jan 2017 21:41

Singha wrote:Atm limit raised to 10k

This a retrograde step.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby rahulm » 16 Jan 2017 21:53

24k per week amounts to 13.44L in an year. That was already way over the cash requirements for savings bank holders for most in India but enough to inject cash availability for the corrupt to continue their ways (eg property registrations, land use re-zoning etc) How many in India earn more than 13.44L per year?

This has already started feeding the black economy, perhaps, not,to the extent prior to DEMON but enough to ease or at least disincentives for many the transition to epayments and for corruption at state level for retail services (non business) to continue.

The 10k ATM is ok if they have kept unchanged the 24k per week limit. I suspect, the ATM increase is a pre poll sop. There is anger in many people about the ATM cash limit, although, I am personally unhappy about this increase as I am about the 24k per week.

I assume NaMo will not take the next step until after the polls. Filhaal sabh thanda ho gaya hai.

It's a pretty sorry and telling state of affairs when the state of the nation is such that the crooked and dishonest who wish to maintain the status quo are in larger numbers and wield disruptive/disproportionate influence compared to the number of honest people.

Javed Jaffery was so right when he said ghost of the DEMON kicks not listening to the cashless talks. Salaam and Namaste to him.

Policy (and philosophy) need to have material impact at the grass roots and reward the honest otherwise both are just obnoxious (f)arts.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby vijayk » 16 Jan 2017 22:18

http://www.forbes.com/sites/timworstall ... 063877628a

The Other Shoe Drops In India's Demonetisation - Swiss Banks To Share Account Info

And then there’s the other shoe dropping, going after those with the offshore accounts, those big fish. There’s been a campaign to get people to declare offshore funds with lower penalties before the deadline and higher after. And that part of the campaign continues–the Swiss banking system will be sharing information with India soon enough:

India and Switzerland have signed a pact for automatic exchange of information that will enable tax authorities to receive financial information of accounts held by Indian residents in Swiss banks from 2018, the Finance Ministry said.


We should note that this doesn’t start immediately–there will no doubt be some quick movements of funds out of that banking system:

In a statement the finance ministry noted that it will now be possible for India to receive from September, 2019 onwards, the financial information of accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis.


On Tuesday, India joined a list of select countries with which Switzerland will commit to an annual exchange of all financial information automatically on a reciprocal basis for tax purposes. India has been lobbying hard to be a part of this initiative in a bid to prevent its citizens from stashing undeclared funds in Swiss banks. It finally managed to convince the Swiss authorities that it will respect Switzerland’s tradition of banking secrecy by respecting confidentiality of account holders and using the data for tax purposes only.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby rahulm » 16 Jan 2017 22:44

Lovely. Announce your attack to pre warn the offenders and give them ample and more time to get their house in order.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby rahulm » 16 Jan 2017 22:56

The limit on withdrawal from current accounts has been enhanced from the current limit of Rs 50,000 per week to Rs 1 lakh per week and it extends to overdraft and cash credit accounts also, RBI said.


So now business can start returning to their old habits not a complete return to the old ways pre DEMON but getting there.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby Marten » 16 Jan 2017 23:08

rahulm wrote:Lovely. Announce your attack to pre warn the offenders and give them ample and more time to get their house in order.

This has been a known move for 7 years now. In the last two, certainly...

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Re: Currency Demonetisation and Future course of Indian Economy

Postby UlanBatori » 16 Jan 2017 23:21

Kakkaji wrote:
sdas1645 wrote:Seems like the small traders are going back to cash now that cash is freely available for small transactions and this is not good. Already the 2 med shops that were offering pos in my locality are now saying that pos are not working and cash only. I think we are going back wards here. I think that the govt has panicked


I think the GOI will impose a 'fee' on large cash withdrawals. That will make using cash more expensive than using digital

Per BootLick, that has already happened. Limit of 3 free ATM withdrawals per month coming. Even a fee of 1 Re will make ppl wonder whether it isn't cheaper to use BHIM or PayTM.
Also, I think it is quite OK for guvrmand to relax the pressure and let the Free Market decide on the fate of e-transactions. Let them compete on a level playing field, on convenience, speed, safety, reliability and efficiency. It's like a rock swaying off a slope: it may rock back a couple of times, but the momentum has been created, there is no going back.

ppl will always try cash for various reasons. Yesterdin at my Paper Dosa place in Ulan Bator, they were in an exceptionally Baboon mode, nearly drove me into my Other Mode before they saw that they were bissing me off. Eventually they were ready, and I went to pay. Credit card charge, gave the slip for me to sign, I added a GENEROUS tip. "Saar, can u put the tip in cash in this jar?" I said no, take it or leave it, that was it. Stores that don't accept POS will become p.o.s. Pakistans. I'll just say, sorry I don't carry cash, I'll go to ur competitor instead.

Dipanker
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Re: Currency Demonetisation and Future course of Indian Economy

Postby Dipanker » 16 Jan 2017 23:27

A_Gupta wrote:To me, I'd guess these price variations are more to do with supply side issues than with demonetization-caused demand issues.


Supply side too was affected for while due to DeMo during the initial days of cash crunch as fewer goods trucks were plying.

But now with remonetization almost 2/3 rd done, truck transportation of goods should be more or less back to pre DeMo level, I am guessing.

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Re: Currency Demonetisation and Future course of Indian Economy

Postby ShauryaT » 17 Jan 2017 01:03

This is a good compromise. It is important that states do have majority control of and retain tax administration, even if they loose the power to change indirect tax policy unilaterally. New Delhi cannot govern the land directly for everything. In Germany, which has a long standing federated system, the provinces did retain the right to administer and collect the EU VAT. IMO: This administration part should have been decentralized entirely.

Centre cedes ground to states to reach consensus, GST rollout from July 1
The split of GST taxpayers between the two will be done horizontally with states getting to administer and control 90 per cent of the asseesses below Rs 1.5 crore annual turnover, and the remaining 10 per cent coming under the Centre.

The Centre and states will share control of assessees with annual turnover of over Rs 1.5 crore in 50:50 ratio even as Finance Minister Arun Jaitley insisted that each tax payer will be assessed only once and by only one authority.

Besides ceding control, the Centre also agreed to the demand of coastal states, allowing them to tax economic activity in 12 nautical miles even though constitutionally the Centre has jurisdiction over territorial waters.

Melwyn

Re: Currency Demonetisation and Future course of Indian Economy

Postby Melwyn » 17 Jan 2017 01:30

BTW HDFC Bank sent a notification to it's Classic customers that the minimum cash required to be kept in account is now 100k( 1 Lakh ). I wonder if this is related to all the demo and cash vaporisation.

UlanBatori
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Re: Currency Demonetisation and Future course of Indian Economy

Postby UlanBatori » 17 Jan 2017 02:53

What is Classic Customer? Mango or Pomegranate?

Kakkaji
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Re: Currency Demonetisation and Future course of Indian Economy

Postby Kakkaji » 17 Jan 2017 03:23

{url=http://economictimes.indiatimes.com/news/politics-and-nation/note-ban-i-t-department-unearths-rs-1550-crore-stash-pumped-by-entry-operators-hawala-dealers/articleshow/56603850.cms]Note ban: I-T department unearths Rs 1,550 crore stash pumped by entry operators, hawala dealers[/url]

NEW DELHI: The Income Tax department today said it has unearthed a black money racket of over Rs 1,550 crore and a maze of shell firms and entities, perpetrated by entry operators and hawala dealers in the wake of demonetisation.

An analysis report prepared by the department, also accessed by PTI, said this particular black money generation modus operandi is led by a group of hawala dealers in the national capital who illegally routed funds worth Rs 930 crore post November 8.

Dipanker
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Re: Currency Demonetisation and Future course of Indian Economy

Postby Dipanker » 17 Jan 2017 08:50

Demo Chickens coming home to roost?

IMF cuts India's growth rate to 6.6% due to note ban

NEW DELHI: The International Monetary Fund (IMF) has cut India's growth forecast for the current fiscal by one percentage point, citing demonetisation woes. It sees India ceding the tag of the world's fastest growing major economy to China in FY17.

Read more at:
http://economictimes.indiatimes.com/art ... aign=cppst


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