Bharat Rakshak

pankajs wrote:Someone asked a while back .. What bout the money is the Swiss Banks?

This is just one such agreement. Expect more such arrangements in the future and no Dubai too will not be safe after a while. Modi did not go to Dubai just to pinprick Bakis. Every foreign touchdown has been with a definite purpose as the latest news demonstrates.

Its funny how people are saying how hard it is to run a business, pay salaries and be profitable but in the same breath argue they should be allow to keep black money. Isn't this an oxymoron? If it was so hard to a make a profit, then there is no scope for black money. If you are generating black money itself means you are generating income above the taxable limits. And the more black money you have indicates how well you are doing.

kvraghav wrote:^^
America is not a signatory? its not in the list.

shiv wrote:I watched the RS debate only for a few minutes while waiting in queue to pee at doctors rest room. Derek O'Brien after appealing for old Rs 500 notes to be kept alive then came up with a valid point that probably served as a party confession as well.

There is a proposal that the center should fund elections. OBrien pointed out that 80% of all election funding comes from unknown sources and that if this was curbed then the center should bear the cost. This is an interesting proposal and I don't know much about it

hanumadu wrote:

chetak wrote:
They may use this ploy to offset their NPA losses (without obviously appearing to do so) and boost their bottom lines at the cost of their customers.

They are already doing it by not passing on the interest rate reduction from RBI. By March 2017, all NPAs will be off the books and they will probably pass on the interest rates.
Right now the banks have a surfeit of deposits but no idea about how long they will stay with them, if they can lend it to others or if they will find any borrowers even. The deposits did not grow organically but came in a deluge. Until a steady state is established between deposits and borrowers, the banks are left with a lot of capital for which they are liable to pay interest without being able to lend out that money. Depending on the demand for capital and the deposits that are sticky, the lending rates and deposit rates will eventually converge after some time.

This is what will happen to the Rs 2,000 note. Once it has served its medium term purpose, which is to infuse the economy with legitimate cash quickly, it will probably be withdrawn in stages.
<snip>
However, the underlying logic of printing the Rs 2,000 note as a prelude to demonetisation is sound. It is a limited purpose note that is not meant to be in circulation forever.

The first purpose of the Rs 2,000 note is to quickly fill the void created by demonetisation. A Rs 2,000 note replaces four Rs 500 notes and two Rs 1,000 notes. The printing order for 3.5 billion pieces of Rs 2,000 notes (probably already completed or near completion) is meant to replace half the currency demonetised (Rs 14 lakh crore) in one shot. If money is the lifeblood of commerce, it is meant to replace the blood lost quickly. It is not meant to be hugely transacted on a daily basis.
<snip>

shiv wrote:There is a proposal that the center should fund elections. OBrien pointed out that 80% of all election funding comes from unknown sources and that if this was curbed then the center should bear the cost. This is an interesting proposal and I don't know much about it

VikasRaina wrote:Deposited my final stash of Cash in the bank today. Not sure why they want a copy of my PAN Card when I am depositing the cash in my own account which is KYC Compliant.

Ministry of Finance ‏@FinMinIndia
Foreign citizens will be permitted to exchange foreign currency upto Rs.5,000 per week.Entry to this effect will be made in their passports.

Karthik S wrote:

Ministry of Finance ‏@FinMinIndia
Foreign citizens will be permitted to exchange foreign currency upto Rs.5,000 per week.Entry to this effect will be made in their passports.

yensoy wrote:

shiv wrote:There is a proposal that the center should fund elections. OBrien pointed out that 80% of all election funding comes from unknown sources and that if this was curbed then the center should bear the cost. This is an interesting proposal and I don't know much about it

Please see Shri S Gurumurthy's DD interview on youtube https://www.youtube.com/watch?v=0eaCr21PB6I which has been referenced multiple times on this thread Despite reams of column being written by various self-styled experts in the past couple of weeks, this interview is still the gold standard of thought. State funding of elections covered at the end of the interview, around 32:30 mark.

yensoy wrote:

Karthik S wrote:

I hope that means converting INR back to foreign currency. Someone with better English skills should have written that tweet.
Limiting someone to converting USD to INR to no more than Rs 5000/week is totally asinine - that's like $80/week. Yes there are tourists who live on that kind of money, but we don't want those kinds of tourists

Sachin wrote:Okay. So no more "currency exchange" scheme through banks. Till Dec 15 the old Rs.500 & Rs.1000 can be used at the other government establishments listed earlier (like Govt. hospital, Govt. managed fuel pumps etc.).

Marten wrote:

Sachin wrote:Okay. So no more "currency exchange" scheme through banks. Till Dec 15 the old Rs.500 & Rs.1000 can be used at the other government establishments listed earlier (like Govt. hospital, Govt. managed fuel pumps etc.).

Can I not deposit the amounts in my bank account? If the regular queues have reduced, why does the exchange option have to go away? It would signal another plan on the offing.

yensoy wrote:^^^^^^^^
It is pure idiocy to deny foreigners the facility to convert medium-large amounts of Forex to INR. What are we trying to accomplish here? Force them to use Hawala? Rs5000 doesn't buy much, and many foreigners are reluctant to use cards, justifiably so.

shiv wrote:It is very likely that black money hoarders have already bought foreign exchange from tourists at attractive rates like Rs 75-100 to the US dollar and paid them from Nov 8th onwards in Rs 500 and Rs 1000 notes telling then that they can still be used in so many places. A tourist on a budget would be happy to do a deal like that rather than get the regular rate from the usual suspects

yensoy wrote:

shiv wrote:It is very likely that black money hoarders have already bought foreign exchange from tourists at attractive rates like Rs 75-100 to the US dollar and paid them from Nov 8th onwards in Rs 500 and Rs 1000 notes telling then that they can still be used in so many places. A tourist on a budget would be happy to do a deal like that rather than get the regular rate from the usual suspects

Which is why I am perplexed by the wording... the limitation seems to be in conversion of Forex -> INR and not the other way around (agree with you that INR->Forex should be capped).

yensoy wrote:^^^^^^^ doesn't add up. If they have Forex what's the hurry in exchanging it? (falling rupee makes it even less meaningful)
As I said earlier, I think it is babu English for "can convert only up to Rs 5000 into Forex".

shiv wrote:The hurry is if they are crooks and are being offered a premium rate for it. The number of tourists who come for cheap ganja and sun is large. The 5000 limit makes it unattractive now

Suraj wrote:IMHO, the Rs 2000 note is a short term monkey trap . Any fool who STILL thinks they can go back to the old and hoard undeclared wealth in cash will sit worrying for the day when GoI says 'chal beta, these notes are invalid going forward . You can deposit them only, until xyz date'. No exchange because everyone's supposed to have gone white by then...

Karthik S wrote:

shiv wrote:I watched the RS debate only for a few minutes while waiting in queue to pee at doctors rest room. Derek O'Brien after appealing for old Rs 500 notes to be kept alive then came up with a valid point that probably served as a party confession as well.

There is a proposal that the center should fund elections. OBrien pointed out that 80% of all election funding comes from unknown sources and that if this was curbed then the center should bear the cost. This is an interesting proposal and I don't know much about it

IIRC, NM did propose that elections should also be state funded.

yensoy wrote:

shiv wrote:The hurry is if they are crooks and are being offered a premium rate for it. The number of tourists who come for cheap ganja and sun is large. The 5000 limit makes it unattractive now

Sir you are not getting what I am trying to say. If there is some local black marketeer who is holding Forex, why would they care to use a gora mule to exchange to INR? They can do it thru hawala themselves, maybe even score a better rate. There is always a demand for Forex in India. Unless they have some other liquidity issue, they can wait till the counterparty is flush with (ill-gotten) INR cash. Let's wait for the clarification tomorrow

shiv wrote:I watched the RS debate only for a few minutes while waiting in queue to pee at doctors rest room. Derek O'Brien after appealing for old Rs 500 notes to be kept alive then came up with a valid point that probably served as a party confession as well.

There is a proposal that the center should fund elections. OBrien pointed out that 80% of all election funding comes from unknown sources and that if this was curbed then the center should bear the cost. This is an interesting proposal and I don't know much about it

sudeepj wrote: Modi talked about this recently at the time of demonetization.. This should happen relatively soon if a big party such as Didi Congress supports it.