Bharat Rakshak

nam wrote:Demo was a nice little trap laid out by GoI. You don't deposit, you loose the money. You deposit, you lay a paper trail leading back to you and still lose the money.

Either way GoI wins.

hanumadu wrote:Just in time for the 2019 elections.

The Prime Minister’s Office is expecting to unearth illegal deposits worth Rs 3 lakh crore and has directed the Income-Tax department and MCA to work together to ascertain such deposits.

Hope this happens before GE 2019.

nam wrote:Demo was a nice little trap laid out by GoI. You don't deposit, you loose the money. You deposit, you lay a paper trail leading back to you and still lose the money.

Either way GoI wins.

Suraj wrote:Err, try and buy with what ? They can't quite write a cheque on that money, and that's a lot of money - four Rafale deals worth. Once their names are tainted, their contributions become tainted too.

A_Gupta wrote:

hanumadu wrote:Just in time for the 2019 elections.

Hope this happens before GE 2019.

I don't really want to inject politics here, but that Rs 3 lakh crores, if not unearthed and disposed of by GE 2019, are a huge incentive for the owners of that Rs 3 lakh crores to try to buy a different government in GE 2019 that will allow them take back those Rs 3 lakh crores (minus a cut, of course, plus election expenses).

This has to happen before GE 2019.

hanumadu wrote:The 3 lakh crores is probably spread over many many companies that it would be hard for them to organise and coordinate. Each individual entity probably does not have too great an amount to further risk attracting attention to it.

The speed at which this has been happening in India is remarkable, but it makes complete sense when you remember that cash was king in the country simply because banks have been excruciatingly slow to bring the 800 million or so unbanked into the financial system. It just didn't make economic sense to them.

Then came two seismic events that transformed things almost overnight. One was the mandatory opening of hundreds of millions of bank accounts in a thrust led by the Modi government that was then linked to a national identification scheme with biometrics. Suddenly, a whole new population received access to digital payments even though they may not have smartphones that allow them to make this happen as yet. But even smartphone adoption is changing rapidly.

Secondly, when the Modi government almost overnight took 86 percent of the existing currency in India out of circulation, it gave one sector an unlikely boost, even if businesses and citizens nationwide were reeling because of a lack of cash to conduct daily activities -- the number of UPI transactions skyrocketed by as much as 57,000 percent to date, according to Mint.

A_Gupta wrote:Cross-post from the Economy thread

http://www.zdnet.com/article/mobile-pay ... sidelines/
"Mobile payments skyrocket in India while banks watch from the sidelines

Digital payments firms like PayTM, Google Tez, and the recent entrant WhatsApp are rapidly pushing credit and debit cards into the background."

The speed at which this has been happening in India is remarkable, but it makes complete sense when you remember that cash was king in the country simply because banks have been excruciatingly slow to bring the 800 million or so unbanked into the financial system. It just didn't make economic sense to them.

Then came two seismic events that transformed things almost overnight. One was the mandatory opening of hundreds of millions of bank accounts in a thrust led by the Modi government that was then linked to a national identification scheme with biometrics. Suddenly, a whole new population received access to digital payments even though they may not have smartphones that allow them to make this happen as yet. But even smartphone adoption is changing rapidly.

Secondly, when the Modi government almost overnight took 86 percent of the existing currency in India out of circulation, it gave one sector an unlikely boost, even if businesses and citizens nationwide were reeling because of a lack of cash to conduct daily activities -- the number of UPI transactions skyrocketed by as much as 57,000 percent to date, according to Mint.

Finance Ministry data shows the country’s largest lender, State Bank of India, collected Rs 1,771 crore during April-November 2017 as charges from customers who did not maintain their minimum monthly average balance in their accounts, according to a report in The Indian Express. This is more than the bank’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit April-September.

A_Gupta wrote:^^^ While of course Jan Dhan Yojana accounts are exempt from this
https://economictimes.indiatimes.com/in ... 337745.cms

Finance Ministry data shows the country’s largest lender, State Bank of India, collected Rs 1,771 crore during April-November 2017 as charges from customers who did not maintain their minimum monthly average balance in their accounts, according to a report in The Indian Express. This is more than the bank’s July-September quarter net profit of Rs 1,581.55 crore and nearly half of the Rs 3,586 crore it earned as net profit April-September.

Irony.

Neshant wrote:Trying to keep suckers locked into fiat currency that gets devalued.

-----

India Bans Bitcoin Wallets, Bank Funding, All Cryptocurrency Services

https://www.zerohedge.com/news/2018-04- ... y-services

Neshant wrote:Digital currency is all about controlling and expropriating a person's earnings by a select few.

Invariably these banksters, govt bureaucrats and so on generate no wealth themselves and are thus dependent on extracting that wealth from the productive elements of society through price fixing (aka interest rate setting) or counterfeiting (aka money printing) or confiscation (aka taxing with no/poor representation).

It's promoted as being for your own good.

The irony is that the more this theft through govt enforced demonetization takes place, the faster people will jump into peer-to-peer and other decentralized forms of crypto-currencies to get away from this theft.

It's a realm that makes taking away the fruits of a person's labor way harder.

A total of Rs 2.31 crore were seized in the state from January 2017 to February 2018 against the total seizure of Rs 6.77 crore across India, accounting for 34% of the total fake currency seized. Mizoram comes a distant second with Rs 1.23 crore worth fake notes followed by Uttar Pradesh (Rs 1.21 crore).

In India, 25568 currency notes of Rs 500 having total worth of Rs 5,11,36,000 and 33304 currency notes of Rs 2000 worth of Rs 1,66,52,000 were seized.

“Most accused caught for circulating fake currency had roots in West Bengal and Bangladesh. These fake notes are routed to bigger cities of Gujarat and thereon supplied to Mumbai, Delhi and Bangalore to weaken the economy,” said officials.

Arima wrote:

Kashi wrote:
Jaggi's article in Swarajya today essentially echoes the above views. He is of the view that a stricter tax regime, IBC and NPA cleanup are squeezing the promoters out of their businesses, attempts at formalising the economy and transactions are stifling new investments. And that because black money is becoming difficult to be laundered back into the economy, sick businesses are becoming difficult to revive!

So doing the right things is now bad for the economy?

https://swarajyamag.com/politics/why-in ... sahi-vikas

inital couple of years new change will have impact. old guard who thrived on loop holes will be wiped out and new generation of business will take lead. in my view future is much brighter.

As the price of bitcoin soared last year from less than $1,000 to more than $19,700, so did BitConnect’s value. Bhatt and other investors in Gujarat poured bitcoin worth $3.2 billion into Bitconnect, according to Bhatia.

The vast inflows from Indian investors were partly the result of Modi’s shock move in November 2016 to invalidate banknotes worth 15 trillion rupees in an effort to curb tax evasion, according to a chartered accountant in Gujarat. Modi, who faces federal elections in early 2019, ruled the state as chief minister for more than a decade before becoming prime minister in 2014 with the promise of stamping out corruption.

As a result of Modi’s 2016 demonetization, about 45 billion rupees ($650 million) flowed to Gujarat’s port city of Surat, to be hidden away in assets including cryptocurrencies, said the accountant, who asked not to be identified because his clients include some of the city’s biggest diamond and textile traders.

Surat, the heart of the scandal, is famed for its entrepreneurial merchants who travel the world to set up a “dhandha,” or family business. Their tight-knit communities dominate Antwerp’s diamond trade and own a quarter of U.S. motels.

In the days following Modi’s demonetization -- when Indians were given about 60 days to bank their higher-value banknotes or lose them -- Google marked a surge in queries from the country on how to launder untaxed cash, or black money. Most of the searches came from Gujarat, Google Trends show.

Still, those who had been trying to hide untaxed cash were in a quandary. If they went to the authorities, they would have to declare their investments.

So Bhatt and nine accomplices -- including Paladiya -- kidnapped two BitConnect representatives in Surat and demanded 2,256 bitcoin as ransom, CID investigators alleged. Paladiya, however, wanted more. He contacted his influential uncle, Kotadiya, and tapped the latter’s network in the local police to double-cross Bhatt and allegedly extort his bitcoin, according to allegations in police documents and interviews with investigators.

They were confident of success, gambling that Bhatt wouldn’t go to the authorities and certain that the anonymity of bitcoin would make the heist untraceable, according to the investigators.

They were wrong. Bhatt pressed charges.

The Reserve Bank of India’s annual report has finally revealed that as much as ₹15.28 lakh crore of the high-value currency that was demonetised in November returned to the central bank.

“Subject to future corrections, based on the verification process when completed, the estimated value of SBNs [specified bank notes] received as on June 30, 2017, is ₹15.28 trillion,” the RBI said in a report released on Wednesday.

SBNs were received by the Reserve Bank either directly or from bank branches/ post offices through the currency chest mechanism. Verification and processing of the SBNs has been completed. The total value of SBNs in circulation as on November 08, 2016, post verification and reconciliation, was `15,417.93 billion. The total value of SBNs returned from circulation is `15,310.73 billion.

Taken together, the costs of demonetisation seem to outweigh the benefits.

nandakumar wrote:Are they saying that a chunk of the notes that came back to RBI due to demonetisation were fake notes?

Aditya_V wrote:While talking about demonetization we also should discuss Tax collection from personal Income Tax and Indirect Tax collections, comparing 2015-16 actuals and 2017-18 RE we see these have jumped by 53% and 60% in 2 years, normal growth could not have been more than 25% in 2 years. The impact of this itself is INR 2.5 Lac crore per year conveniently forgotten by most observers. Its probably tax dodgers caught in the net who are now whining.

Suraj wrote:

nam wrote:Demo was a nice little trap laid out by GoI. You don't deposit, you loose the money. You deposit, you lay a paper trail leading back to you and still lose the money.

Either way GoI wins.

Fixed that for you. I'm surprised the press didn't even get that when they talked about '99% of money has been deposited! GoI failed at DeMo!' I stated then that all that's happened is that everyone left a paper trail back to them. The whole 'demo failed because 99% of money came back!' is the dumbest argument I've seen on the matter. GoI *wanted* the paper trail. Now they have all the time to chase it down at a time of their choosing.

vinod wrote:Almost all the kerala societies are filled up with black money. All the old notes were deposited through these.
Is RBI looking at bringing the societies into line with other banking regulations?

Sachin wrote:

vinod wrote:Almost all the kerala societies are filled up with black money. All the old notes were deposited through these.
Is RBI looking at bringing the societies into line with other banking regulations?

Co-operative banks are facing love of two agencies, RBI and the Income Tax Department . The crooks at co-operative banks had approached the High Court and got a verdict that RBI cannot oversee the accounts of Co-Operative societies, as they are NOT banks per-se. Due to this all Co.Op banks except the District & Urban Co.Op banks escaped for a short while. But what then happened was - Kerala: Cooperative investors get an I-T surprise. The IT department started sending out notices to people who have deposited money in Co.Op banks. Kerala has been trying to make these Co.Op "Banks" out of audit of every regulatory authority.

vinod wrote:How did the IT dept find out the depositors details? Did they get from Co-op itself? From what I hear, the same person holds multiple accounts under many pseudos. So, I doubt IT got anything from Co-op. Must have been through some other transaction linking them to Co-op.

Over 5.29 crore income tax returns have been filed by taxpayers as the deadline ended today, signalling an increase of over 60 percent from the previous year.

<snip>

The officials attributed the increase in the number of returns filed this time largely to two causes—the expansion in the tax base due to demonetisation and the first time decision to impose monetary penalty on late filers of returns.