Currency Demonetisation and Future course of Indian Economy

[shiv]

Vina unkil is right. Can't do an online transfer to a wrong account number or in a wrong branch. Only offline deposits have this risk.



Shiv saab, when did you enquire about card machines ? You don't need 2 lpm turnover. Even 3rd party companies like PmoneyPay and 1 2 Others are offering this service at good prices.

It used to be 2l
Maybe changed now. But the way to go is not POS but PayTM or UPI

Personally I have no need because my work is at a place which takes cards anyway.

[JohnTitor]

Most countries in the west is already 90% cashless. People hardly carry cash. It is not a problem at all.

The aim of the western banksters is to force all their countrymen to keep their earnings & savings as digital credits - which banksters can then steal at will.

Cash puts a floor on negative interest rates being implemented to steal from savers, wage earners, pensioners and taxpayers. Removal of cash enables negative interest rates which is a transfer of wealth from those who've earned their money to banking thieves.

Again its not something you will easily understand unless you understand how the monetary system works - which you don't.

It will suffice to say that ANY attempt to force people to transact and save in a monetary system involuntarily is a robbery scheme.

You can pay all your capital goods (cars, tv, refrigirator,) property, utilities, holidays, clothes, fuel etc by card/bank transfer. No problem at all.You need some cash for vegitables and smaller purchases of very small sums. I say, keep the RS 100 rupee note only.

Sorry to say but your understanding of how control over the fiat monetary system by private banks is used to defraud the productive populace is very lacking. Do you know how and why the Federal Reserve came into existence. Do you know who's interest it represents. Do you know why the IRS came into existence at the same time the Fed came into existence? If you don't, you cannot hope to understand ANYTHING of the fiat monetary system and moves to separate the productive population from its wealth.

Please stop posting nonsense. Your statement has no basis other than the ravings of a conspiracy theorist. Cash has the same problem as it is dependent on "trust". Issues with the western banking system are due to other causes that do not affect the Indian economy at this time. I speak from experience as a "bankster" as you say. I have debunked some of your "issues" already.

[disha]

Is it just me? Why is most of rona-dhona about unavailability of small change coming only from the it-vity capital of India., Bengaluru, Kerala?

Well, here is a counter example, from the same BLR, KL .

Thanks a lot for you on the field experience. Looks like you are in KL, BLR and not in BLR, KL

[Neshant]

What does this even mean? You mean to say that the currency notes we have been using for eons is voluntary?

I assume you meant to say "not voluntary".
It is non-voluntary.

The reason income tax came into force at the same time central banks started creating fiat currency was to force people to use fiat currency. You cannot pay income tax in anything other than the fiat currency and if you choose not to pay, violence (imprisonment, asset confiscation..etc) is used to force conformance. All debts are considered settled in the fiat currency (even if the currency has been inflated away) thereby providing the "legal" means of cheating creditors and stealing from savers & wage earners.

Use of the currency is non-voluntary simply because nothing voluntary require the use of force - as described above.
This is the reason I asked if you understood why the IRS came into existence at the same time as the Federal Reserve.

In that case, we should frequently see people buying property or a car for gold or a sack of rice.

Understand what Gresham's law is first.

Currency notes are by fiat, fair enough. Currency notes residing in a bank a/c are also by fiat. What's the diff?

Both are means of control, the latter the means of absolute control.

To put it simply - whenever someone is trying to baffle you with gobblygoop about why its good for you to be separated by a firewall from your money and leave it under the control of banksters, you're about to be robbed.

[KJo]

Poor Karnataka Engineering and Medical colleges. Yeevil Yindoo Modi has caused them severe loss in donation money

[R_Kumar]

I red on news paper that sp leaders in UP have converted around 2000 cr using coprative bank.
Looks like government totally missed this loophole.

[shiv]

The only losers in demonetization are the politicians, who are the ultimate repository of cash currency. But not the people who take the bribes. But then, all the politicians lost money, who didn't have businesses to convert their black money to white. But we hardly see any Politician who doesn't have a business. For example, Chandra Babu Naidu has heritage dairy, he has thousands of acres of land in the name of heritage, and perhaps some change of some 10000crores to buy some mlas in case a sudden need arises. If that money is gone, it's just some change, this time he will get back that change in the new currency.

If you want to end corruption, you have to start taxing the farmers, close down all the businesses, and stop all the RE development.

There is a continuous chain of people from business to politicians who support the black economy by giving and taking bribes.

Let me say exactly the same thing in words that you might want to argue with:

There is a continuous chain of people from business to politicians who are dishonest

The problem here is in defining what is dishonesty. A Muslim living under sharia must not drink and a woman must not commit adultery. But some do and they get away. If they get caught they might still escape because they are able to pay or give favours to the people who make the law. The mullah who sees a person drinking and cavorting with another man's wife may want a gift of land that he has have control over. The mullah blackmails that man for the land and gets it, he starts his madarsa and the man continues to have his affair and alcohol. In Quranic terms this is "dishonesty"

National laws in India are like Sharia. They define dishonesty and are supposed to curb dealings where tax is not paid or where money is used to do a deal that is disallowed under national law. The mullah whom you compete with is also using the same system that you are using. He is bribing the same people and is avoiding taxes. You are doing it for Hindutva and he is doing it for Islam. In every case the local pandu and politicians gain.

Your solution for that is that all business dealings must end. Yes that is one solution. If you gain enough power to change national laws - you could offer that as a solution, but until then your solution will not be applied. All solutions that are applied will not be to your satisfaction. They may not work just as you predict - but until everyone discovers that you are right and they were wrong people will be forced to follow the national laws, just like Pakis must follow Sharia whether they love it or not

Pandus taking bribes using card swiping using POS terminal is a good idea. I agree with it

[Gus]

I red on news paper that sp leaders in UP have converted around 2000 cr using coprative bank.
Looks like government totally missed this loophole.

Co-op banks are not allowed to submit old money unless they have clearance - which is given only for some specific coops that follow kyc etc.

Please do due diligence before posting random stuff

[g.sarkar]

http://www.rediff.com/business/report/n ... 161129.htm
Roll back ban on Rs 500 note, says ex-chief economic advisor Basu
Demonetisation may have been well-intentioned, but it was a major mistake. The government should reverse it. It could at least declare that Rs 500 notes, which many poorer people frequently use, are legal again,' Basu, who till recently was World Bank vice-president, wrote in an opinion piece in The New York Times.
Former chief economic adviser Kaushik Basu said the government should revoke its decision to demonetise, at least partially, by allowing old Rs 500 notes to be traded as legal tender. Otherwise, he said, GDP growth would drop, hurting the common man more than black money holders.
“Demonetisation may have been well-intentioned, but it was a major mistake. The government should reverse it. It could at least declare that Rs 500 notes, which many poorer people frequently use, are legal again,” Basu, who till recently was World Bank vice-president, wrote in an opinion piece in The New York Times.
Basu said the GDP growth would plummet due to demonetisation but did not specify any figure. In the article titled ‘In India, Black Money Makes for Bad Policy’, Basu countered the argument that demonetisation would bring down inflation.
“There also is no evidence that black money actually is more inflationary than white money; nor in theory should it be. Black money is just money held by people instead of the government. It’s an excessive money supply that tends to create inflation; whether that money is white or black makes little difference,” he said.
Terming demonetisation as a ‘ham-fisted’ move, Basu said the measure will put only a temporary dent in corruption.
.......

Every one is so concerned about the poor. It gives me a warm and fuzzy feeling: Mera BHARAT mahan.
Gautam

[tandav]

Can People deposit unaccounted cash without KYC in Cooperative banks and transfer funds in their account via NEFT/RTGS/IMPS/Cheque to a Scheduled bank and use the money. Or can they pay other people with Cheques and DD from Co-op banks and move that liability to other people.

[R_Kumar]

Co-op banks are not allowed to submit old money unless they have clearance - which is given only for some specific coops that follow kyc etc.

Please do due diligence before posting random stuff

[/quote]
I didn't post any random stuff, I will try to get the link. In-fact it had statement from some district officials that said we got guidelines late so we didn't break any rule. I will be happy if it's not true.

[shiv]

I red on news paper that sp leaders in UP have converted around 2000 cr using coprative bank.
Looks like government totally missed this loophole.

If we assume that the total volume of currency floating around that is hoarded "black" cash is 2 lakh crore then we must expect at least 10% (maybe more) to get converted illegally - and that would be 20,000 crore. So 2000 crore conversion here and there is still possible.

But if black money is put into a bank it will not be "conversion" as such - it just means that it is in the bank. Getting it out will mean that the bank will have a trace of who took it out and when

[vina]

Poor Karnataka Engineering and Medical colleges. Yeevil Yindoo Modi has caused them severe loss in donation money

Thru Chaiwallah channels, I have it on good authority, that the going rate for a PG /Medical seat has crashed from approx Rs 1.5cr upwards to around Rs 65L and despite that , there are NO takers.

Also, dont ask which event, but there was one that someone I know was looking for sponsors. People were literally falling over themselves a month back to sponsor. Now I believe they dont even pick up the phone!

All those guys are SHELL shocked and cash has been sucked dry out of them. If anyone thinks that the liquid cash sloshing around didnt lubricate the transfers and dealings in the parallel economy , they are in cloud cuckoo land.

Sure, the e-Con-o mists and others predicting a GDP contraction is based on this , well, sure, the GDP is going to take a hit, sure, if you count the white + black economy, it will. However, the measured GDP was white as snow onree! Now the parallel economy has to move white. That economy has taken such body blows (and who knows what is coming next), a lot of those guys will now go fully legit and my money would be the "formal" GDP actually GROWING or being FLAT as a result. The white economy is going to get a"boost" from the underground economy coming on board. Once that happens, there will be whines from the "e-con-o-mists" that all this higher growth is "Maya" /"accounting tricks onree" .. There is actually NO growth, only that the existing black economy became white (and of course #BlowTOModi and all that from Turdesai and Goose ).

Tiny kerfluffle, it wouldn't have happened without this demonetization (and Kejriwal, guess what, the DTC money laundering and corruption wouldnt have come to light either.. now go fix THAT before going off on a random wild goose chase and launching the corruption/inspector raj. Trouble for Kejriwal is that Modi has basically uprooted the ONLY issue he had campaigned on, corruption, and now has something massive to back up his street cred, while Kejriwal has just noise .. hence his ),

Oh, another important point, even if the "e-con-o-mists" say, the overall pie has not grown, only black became white, they miss the point that with that color change the Tax to GDP ratio would increase. And that is a MASSIVE win. I heard Suresh Prabhu (a very impressive minister) talk on TV yesterday and talked about spending $1Trillion over the next 4 years on Infra. That kind of spending would be absolutely transformational, and do to India, what that kind of infra spending did for China.

AND if that spending is financed by decimating black money and corrupt money and increasing tax collection from the hitherto unaccounted economy , aided by GST on the indirect taxes side, all without tax increases, there can be ABSOLUTELY no better way of doing it.

I hope Modi sticks the course and rams it through, irrespective of consequences, irrespective of election outcomes in UP /Punjab wherever and just does it. Sucking up cash and going largely cashless will eliminate massive amounts of low level corruption and illegality that affects everyone .

[Suraj]

Co-op banks are not allowed to submit old money unless they have clearance - which is given only for some specific coops that follow kyc etc.

Please do due diligence before posting random stuff

I didn't post any random stuff, I will try to get the link. In-fact it had statement from some district officials that said we got guidelines late so we didn't break any rule. I will be happy if it's not true.

It does not matter if the co-op banks took in the money. RBI hasn't provided any bank the authority to convert the older currency into newer ones without proper KYC/Aadhaar paperwork. The money can sit in the bank, but it's not going to get converted without the RBI's say so, and that's not going ot happen. So, all that's happened is that they've handed over the old notes and now have a target painted on their backs. That is, unless the co-op bank itself is willing to go under to avoid disclosing the depositors' names. If that happens, it should guarantee that the politicos will never get elected again as the mango man's wrath hits them.

[putnanja]

I have a question on these news that co-op banks have already been used to convert BM to WM. Consider a scenario of a co-op bank where say weekly deposits are around 5 crores (random number) and withdrawls around 3 crores. They have to deposit extra cash with their sponsor banks or keep it and recirculate for loans etc. Now, let us say that some politicians deposited around 50 crores in multiple accounts. However, the bank cannot use this cash to hand out loans as those notes are not valid. And if they go to sponsor banks for depositing/exchanging it, it will raise questions as its 5-10 times their average deposits.

So how do co-op banks turn BM to WM if people really used them to convert BM to WM?

[Suraj]

They can't. They could use some of the float, i.e. let their patrons withdraw the cash they received before they can validate the KYC information for the old notes deposited, i.e. they end up with the liability for both the deposited old cash and the withdrawn new cash, perhaps hoping to threaten RBI/GoI with a 'too big to fail' argument. The leaks are still chickenfeed compared to the overall quantity of cash involved. Numbers need to get into 10K crore figures before they're really significant.

[Sicanta]

Black Money fight: Lok Sabha passes Income-Tax Amendment Bill

The Taxation Laws (2nd Amendment) Bill, 2016, as reported earlier, proposes to levy a 30% tax, a 10% penalty and a surcharge called Pradhan Mantri Garib Kalyan cess, which will be 10% (33% of the tax). The proposed law also makes it obligatory on black money declarants to deposit 25% of the disclosed amount in a scheme to be notified by the Reserve Bank of India without interest and bound by a four-year lock-in clause. The total tax could be 85% (60% tax plus 15% surcharge plus 10% penalty) in case undeclared income under PMGKY is misreported and taxman finds that out.

[TKiran]

If you want to end corruption, you have to start taxing the farmers, close down all the businesses, and stop all the RE development.

There is a continuous chain of people from business to politicians who support the black economy by giving and taking bribes.

Let me say exactly the same thing in words that you might want to argue with:

There is a continuous chain of people from business to politicians who are dishonest

The problem here is in defining what is dishonesty. A Muslim living under sharia must not drink and a woman must not commit adultery. But some do and they get away. If they get caught they might still escape because they are able to pay or give favours to the people who make the law. The mullah who sees a person drinking and cavorting with another man's wife may want a gift of land that he has have control over. The mullah blackmails that man for the land and gets it, he starts his madarsa and the man continues to have his affair and alcohol. In Quranic terms this is "dishonesty"

National laws in India are like Sharia. They define dishonesty and are supposed to curb dealings where tax is not paid or where money is used to do a deal that is disallowed under national law. The mullah whom you compete with is also using the same system that you are using. He is bribing the same people and is avoiding taxes. You are doing it for Hindutva and he is doing it for Islam. In every case the local pandu and politicians gain.

Your solution for that is that all business dealings must end. Yes that is one solution. If you gain enough power to change national laws - you could offer that as a solution, but until then your solution will not be applied. All solutions that are applied will not be to your satisfaction. They may not work just as you predict - but until everyone discovers that you are right and they were wrong people will be forced to follow the national laws, just like Pakis must follow Sharia whether they love it or not

Pandus taking bribes using card swiping using POS terminal is a good idea. I agree with it

Shiv Sir, politics is like that only, all over the world. You are a patriotic Indian, so you are thinking for India only. Recently I read about what Hillary Clinton did in USA. It came out into public, otherwise usually these are secret. In western world these things happen in a much grand scale. In China it happens. Perhaps only exceptions would be Japan and South Korea... Oh wait.. South Koreans were very corrupt, but still they have shame left I believe.

How they were able to keep it secret is that, the general public interface of police and other public services are strictly prohibited to misuse the power. India is also progressing slowly towards that. Ie curbing the public interface of government misuse of power.

[shiv]

Poor Karnataka Engineering and Medical colleges. Yeevil Yindoo Modi has caused them severe loss in donation money

Thru Chaiwallah channels, I have it on good authority, that the going rate for a PG /Medical seat has crashed from approx Rs 1.5cr upwards to around Rs 65L and despite that , there are NO takers.

Also, dont ask which event, but there was one that someone I know was looking for sponsors. People were literally falling over themselves a month back to sponsor. Now I believe they dont even pick up the phone!

Not surprised at all. Even 65 lakh is too high. Apart from fees it should be zero. Medical colleges have a strong caste, community religion basis for starting and politicians are always involved as well as large business interests,

In 1989 I had met Vijay Mallya (with Pratap reddy) at a meeting in the UK where he was asking doctors to invest US$ 5000 each in a new Bangalore hospital that was due to be called "Mallya-Apollo" Hospital. I coughed up USD 5000 and became a shareholder. The Hospital itself did not go on stream until about 1992 or so. In fact I did the first keyhole gall bladder surgery in that hospital in May 1993. Meanwhile we were all issued Mallya Hospita;l shares.

Somewhere along the way Pratap Reddy pulled out and politician Audikesavalu came in. Meanwhile the hospital was in the doldrums and Mallya converted all out shares to McDowell shares. I got 800 shares but the value had fallen from my Rs 80,000 investment to just 22,000. But he did us a favour. Over the years Audikesavalu took over the hospital and merged it with a new medical college he was building - Vydehi medical college. I opted out of the hospital by 1996 or so but kept the shares. They served me well. Eventually sold them all.

Vydehi medical college was in the news after demonetization because they found a room with 40 crores cash and later college authorities admitted to Rs 260 crores in demonetized currency

http://timesofindia.indiatimes.com/city ... 576739.cms

[shiv]

How they were able to keep it secret is that, the general public interface of police and other public services are strictly prohibited to misuse the power. India is also progressing slowly towards that. Ie curbing the public interface of government misuse of power.

The difference between India and the west if that in India there is corruption from top to bottom. In the west only the top is corrupt.

[NRao]

If you want to end corruption, you have to start taxing the farmers, close down all the businesses, and stop all the RE development.

OR make it track-able - such as transacting via electronic means. GoI is encouraging this option.

Another option (suggested even in the US/Europe - Sumner suggested (in the past 10-15 years) getting rid of the $100 bill, much like what is happening in India) reduce the amount of paper money. Modi has done part of this too - replacing the Rs. 1000 with a Rs.2000.

[Gus]

Can People deposit unaccounted cash without KYC in Cooperative banks and transfer funds in their account via NEFT/RTGS/IMPS/Cheque to a Scheduled bank and use the money. Or can they pay other people with Cheques and DD from Co-op banks and move that liability to other people.

Co-op banks are not Tasmac to just grab ur money and give a quarter. They do have paper trail. To submit money to RBi, they need to show that trail. All sorts of old ghosts will pour out of those trails.

[Suraj]

Mostly OT, but I would argue that the west has corruption at every level too. It's just 'developed'. You don't pay a bribe the crude SDRE way to get service. Instead you pay an assortment of fees with BS names. 'Regulatory enabling fee', 'Service provisioning convenience fee' etc. All that comes elegantly listed somewhere in the bill. When you ask more, you're told 'sir, this is a required fee'.

[putnanja]

How they were able to keep it secret is that, the general public interface of police and other public services are strictly prohibited to misuse the power. India is also progressing slowly towards that. Ie curbing the public interface of government misuse of power.

The difference between India and the west if that in India there is corruption from top to bottom. In the west only the top is corrupt.

True. In day to day dealings, you hardly see much corruption, at least in US. Whether to get a driver license, telephone/water/electricity connection, house plan etc changes, traffic tickets etc. There are proper community hearings (at least in places I lived) and roads/drains/parks/lakes etc are maintained well with quarterly newsletter from local town council updating us. Since corruption is at the top, there are bigger longer term issues (banks failing due to poor regulation etc).

It is when your normal day to day dealings is affected due to corruption that people hate it and seems pervasive.

[Gus]

Audikesavulu or adikesavulu

[TKiran]

How they were able to keep it secret is that, the general public interface of police and other public services are strictly prohibited to misuse the power. India is also progressing slowly towards that. Ie curbing the public interface of government misuse of power.

The difference between India and the west if that in India there is corruption from top to bottom. In the west only the top is corrupt.

It used to be like that in India too some 30years ago. I know many people who were never corrupt till they reach age of 55, when they start corruption. The last 3 years were so crucial. In fact many state government employees died due to heart attacks, when NTR reduced the retirement age by 2 years, that is when the people started becoming corrupt right from the start. At least in esrstwhile Andhra, it's like that in my opinion.

[Rishi Verma]

Burkha Dutt's Last Ditch Attempt

She keeps picking gems to pooh-pooh the scheme from her chair. She isn't stupid like Rajdeep to go out and "survey" how real people feel. I guess congress can't pay her in new notes.

[chetak]

[Sicanta]

According to the new notification, the KYC (Know Your Customer)-compliant account holders might be allowed to withdraw Rs 10,000 a month from their account, while branch managers could allow further withdrawals beyond Rs 10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting them on bank record.

On the other hand, the limited or non-KYC-compliant account holders might be allowed to withdraw only Rs 5,000 per month from the amount deposited through specified bank notes after November 9 within the overall ceiling of Rs 10,000.

[shiv]

The difference between India and the west if that in India there is corruption from top to bottom. In the west only the top is corrupt.

It used to be like that in India too some 30years ago. I know many people who were never corrupt till they reach age of 55, when they start corruption. The last 3 years were so crucial. In fact many state government employees died due to heart attacks, when NTR reduced the retirement age by 2 years, that is when the people started becoming corrupt right from the start. At least in esrstwhile Andhra, it's like that in my opinion.

Nonsense Kiran. Tell this to someone else.

[shiv]

Mostly OT, but I would argue that the west has corruption at every level too. It's just 'developed'. You don't pay a bribe the crude SDRE way to get service. Instead you pay an assortment of fees with BS names. 'Regulatory enabling fee', 'Service provisioning convenience fee' etc. All that comes elegantly listed somewhere in the bill. When you ask more, you're told 'sir, this is a required fee'.

Regulated bribes makes life much more predictable.

For example I was exchanging notes about locating a good tenant for a house in Bengaluru versus same job for a house in Edinburgh. Agents in BLR are unauthorized and often crooks who squeeze money from both parties. In cash. In Edin authorized agents are paid a cut above board but do the entire legal documentation stuff

[Yagnasri]

http://swarajyamag.com/economy/five-way ... ion-gamble

Jaggi now says only 10% may not comein. I wonder. The general assumption at the initial stage was some 30% will not come into banks. But already we have some 60% in the banks and one more month to go. I am not sure if this slows down as 30.12.2016 nears or all the money will come in well before that date.

One more interesting thing to observe is the amount of money came into Petrol bunks etc. This will give a clear indication of the money laundering activity. If these entities report all transactions done by 500/1000 notes only, then they are used for money laundering.

[g.sarkar]

http://www.firstpost.com/india/demoneti ... 31372.html
Demonetisation: With a clueless Oppn, Modi can afford to try and create a cashless India
Cashless transactions? Why not?
Yes, it’s a big gamble, given the reach and awareness of banking in the country. Mobile connectivity is abysmal in many parts and a vast swathe of rural India remains under-penetrated when it comes to banking. For example, of 6,238 gram panchayats in Odisha, about 4,400 have no branches. About 47 percent of rural population in the state, according to a letter from Chief Minister Naveen Patnaik to Finance Minister Arun Jaitley, have no proper access to banking facilities. The recent experience with demonetisation revealed the limitations within the banking ecosystem.
But then, sometimes, shock therapy works well to revitalise a system trapped in lethargy. The demonetisation exercise would certainly help the banking system shift to the next level of efficiency. Similarly, the big emphasis on cashless transactions, disruptive in its potential as it might be, would definitely mark a big shift in how Indians transact. Sure, more than 230 million of them remain unbanked, the general confidence in the banking system remains low and there’s a massive unorganised sector in the economy that relies heavily on cash. But if Prime Minister Narendra Modi is serious about making India cashless, he has to step on the gas now.
It is difficult for countries to go entirely cashless, but the process has to begin somewhere. The idea coming close on the heels of demonetisation seems to have the timing right. If there was a fear of a public backlash to such bold moves, the results of civic body polls in Maharashtra and Gujarat settles it conclusively. If the overwhelming perception is that something good is in the air, people won’t mind small discomfitures. The prime minister has managed to convey to people at large that he means good. And the opposition’s argument against demonetisation has been less than convincing.

Gautam

[DDas]

This is the ground level report from Hyderabad. Only Rs 2000 available. That too in short supply. Till date I haven't seen any new Rs 500 note. Its causing too much problems for small purchases. Payments to unorganized sector labor force has taken a big hit

[hanumadu]

For example, of 6,238 gram panchayats in Odisha, about 4,400 have no branches.

This statement does not reveal the true picture. A gram panchayat population can sometimes live in as small as a 500 m radius. The next village will be another 2 km from this village and it might have a bank. Most villages (except some very remote parts) have a bank within 3 to 5 km which is less than the distance that I have to go to get to my bank in my town. For mobile banking, cell phone is more important than a physical bank.

[Suraj]

To add to that, there are many more post offices than banks, and >90% of post office locations are rural. These are authorized to take deposits of old notes. Many PMJDY accounts were set up through them during the original PMJDY drive.

[Nitesh]

One more avenue for laundering getting tightened:

http://economictimes.indiatimes.com/new ... 698561.cms

In a notification issued on Wednesday RBI announced that withdrawals from Jan Dhan accounts would be capped at Rs 10,000 per month.

The central bank said that fully KYC compliant holders may withdraw Rs 10,000 from their account every month. It further added that the branch managers may allow further withdrawals beyond Rs 10,000 with 'current applicable limits' only by ascertaining the genuineness of such withdrawals and after documentation.

[vina]

Vydehi medical college was in the news after demonetization because they found a room with 40 crores cash and later college authorities admitted to Rs 260 crores in demonetized currency

http://timesofindia.indiatimes.com/city ... 576739.cms

With visible body blows that large groups with BM are taking (also note the raid in Madras of a large educational group where the admitted amount is north of Rs 450 cr) and repeat this in state after state and region after region, it is no wonder that Modi has such huge support.

What are Congress and Mamata thinking of when they are opposing this ? It is an unwinnable battle and will get labelled and imprinted as supporters and hoarders of black money!

[pankajs]

Can People deposit unaccounted cash without KYC in Cooperative banks and transfer funds in their account via NEFT/RTGS/IMPS/Cheque to a Scheduled bank and use the money. Or can they pay other people with Cheques and DD from Co-op banks and move that liability to other people.

Co-op banks are not Tasmac to just grab ur money and give a quarter. They do have paper trail. To submit money to RBi, they need to show that trail. All sorts of old ghosts will pour out of those trails.

Co-op banks are always involved with politico and their shady deals. Better to stay off the radar than invite a forensic examination going back to 1947. Of course folks make decisions that contrary to self interest but that will have consequences.

[Gus]

Just like how being against reservations can be politically painted as == against dalits, many of modi actions are politically unopposable. Anti surgical strike? == Pro pak. Anti UCC? == Anti woman. Anti DeMo? == Pro BM.