Demonetisation: Will it lead to a corruption free India?

[vgane]

Share:

Facebook X (Twitter) LinkedIn WhatsApp Email Share Link

Many countries like Australia & Canada are using plastic notes...Cannot be easily counterfeited..Also can be washed with water...No worries if we forget to remove the currency from shirt pockets before putting in a washing machine

[h=1]Govt to Print Plastic Currency Notes to Check Counterfeiting[/h] Press Trust Of India
First published: December 9, 2016

[h=5]Representative image (Photo Credit: PTI)[/h]
New Delhi: Government on Friday informed Parliament that a decision has been taken to print plastic currency notes and procurement of material has started.

"It has been decided to print banknotes based on plastic or polymer substrate. The process of procurement has been initiated," Minister of State for Finance Arjun Ram Meghwal said in a written reply in Lok Sabha to a query whether RBI proposes to print plastic currency notes in place of paper ones.

The Reserve Bank for long has been planning to launch plastic currency note after field trials.
In February 2014, the government had informed Parliament that one billion plastic notes of Rs 10 denomination would be introduced in a field trial in five cities selected for their geographical and climatic diversity. The selected cities were Kochi, Mysore, Jaipur, Shimla and Bhubaneswar.Plastic notes have an average life span of about five years and are difficult to imitate. Also, currency notes made of plastic are cleaner than paper ones.

Such notes were first introduced in Australia and 20 other countries to safeguard against counterfeiting.
Replying to another question, Meghwal said it was informed by RBI in December 2015 that they have received some banknotes of Rs 1,000 without having security thread which were printed at Currency Note Press (CNP), Nashik, on paper supplied by Security Paper Mill (SPM), Hoshangabad. An inquiry has been initiated by Security Printing and Minting Corporation (SPMCIL) and the units involved (SPM and CNP).
"Major penalty chargesheet has been issued to the personnel concerned. Disciplinary proceedings have been initiated as per departmental rules," the minister said.
Meghwal further said action has been taken to strengthen quality procedure and online inspection system in manufacturing process and special training has been given to the persons concerned to avoid such types of mistakes in future.
"Additional inspections have been introduced to ensure defect-free production," he said.

http://www.news18.com/news/india/ha...otes-government-tells-parliament-1321091.html

 

[vgane]

Hope the notes availability increase from 1st Jan 2017
[h=1]Not being allowed to speak in Lok Sabha on note ban: PM[/h]December 10, 2016 12:16

---

PM Narendra Modi is addressing a rally in Deesa town of Banaskantha district of Gujarat. Highlights:


* Government has always said we are ready to debate. I am not being allowed to speak in Lok Sabha so I am speaking in the Jan Sabha


* Parliament is not being allowed to function. Happenings in Parliament anguished our President, who has tremendous political experience.


* We belong to a nation where we do not think 'what's my interest'. We are not a selfish nation. We think about future generations.


* For 70 years, the honest have been looted. But now I am standing with them & that's why they are being provoked. We are standing with the poor of the nation.


* Who is unhappy with corruption? Not those perpetrating corruption...it is the poor, the common citizens who are unhappy


* With our step on currency notes, we have been successful in weakening the hands of terrorists, those in fake currency rackets


* For how long can poor of India be told to pay for houses in cash. For how long will poor be asked -- you want Pucca bill or Kuccha bill?


* Today everyone in the nation is discussing the issue of currency notes. We took the decision on currency notes to strengthen the hands of the poor of the nation

http://news.rediff.com/commentary/2...-note-ban-pm/66779156df439bae5571ffb181cd39fe

 

[vgane]

Criticise me, but teach people electronic banking: PM tells Oppn

December 10, 2016 12:26

---

More highlights from PM Modi's rally speech in Deesa town:



* Like 100 Rs currency notes have gained in strength, the poor has also been empowered


* India wants to progress. Corruption and black money is slowing our progress and adversely affecting the poor. These evils have to end


* Today your banks and wallets are in your mobile. This is how things have changed. I urge you all to integrate people with e-banking, e-wallets. There is no need to waste your time standing outside banks or ATMs, e-wallets have brought banks to your mobiles.


* You must have seen how bank officials and others who have stashed huge amount of black money are being caught. They thought they can escape through back-channels but they didn't know that Modi has installed cameras in the back-channels as well. I want to assure the people of the country that no one will be spared


* Had asked for 50 days. You will see how things will change. This is a major step to rid the nation from corruption


* Merely talking about the poor is different from working for the poor, something that the NDA government is always doing.


* From the land of Mahatma Gandhi and Sardar Patel I want to share something with my friends in the Opposition. Yes, during elections we have a lot of heated debates. But we all call for increased voter turnout. Likewise, yes, you can oppose me but do teach people about banking, using technology for financial transactions


http://news.rediff.com/commentary/2...m-tells-oppn/25d0a866868abfdd05b99b8cd648c09b

 

[prasad1]

 

[prasad1]

 

[prasad1]

 

[prasad1]

[FONT=&quot]Cash worth Rs 10.5 lakh in defunct notes of Rs 500 and Rs 1,000 was seized from a former BJP corporator near Saswad, 30 km from Pune, police said on Saturday.[/FONT]
[FONT=&quot]The amount was seized from Ujjwal Keskar, a former BJP corporator from Pune, when he was on the way to Baramati with three others on Friday, they said.[/FONT]
[FONT=&quot]“A team of state election commission and police seized the cash worth Rs 10.5 lakh, all in scrapped notes of Rs 500 and Rs 1,000, belonging to Keskar. Income Tax Department has been notified,” an officer from Saswad police station said.[/FONT]
[FONT=&quot]Municipal council polls are being held in Pune district this month.[/FONT]
[FONT=&quot]Keskar, however claimed the cash was legitimate.[/FONT]
[FONT=&quot]“Me and my associates were on the way to my village near Baramati. After visiting my village, we were supposed to go to Panchgani. Since banks in the city are crowded, I thought I will deposit the cash in a bank in Panchgani, where I have account and hence I was carrying the cash with me,” he said.[/FONT]
[FONT=&quot]He claimed that he had the documents to prove the cash was legitimate.[/FONT]
[FONT=&quot]“I have handed over the documents to the IT officials and soon truth will come out,” he added.

http://www.hindustantimes.com/india...ker-in-pune/story-xsi2eAv1kP2VcfstgdsIFP.html


Did somebody say that it will reduce corruption? May be in your dreams.[/FONT]

 

[prasad1]

Raids by Delhi Police at a firm in Greater Kailash area of the national capital have unearthed more Rs 8 crore in cash.

Out of this at least Rs 2 crore is likely in new currency. The money has been seized in raids by the crime branch team of the Delhi Police.

When the police team raided the office, its rooms were locked and a caretaker was present. Police said more raids would be conducted in this connection.

"The recovered amount is expected to be more than Rs 8 crore. Out of which, more than Rs 2 crore will be in new currency notes. The I-T department has been informed and the counting of recovered cash is underway," said an officer on the spot.

http://timesofindia.indiatimes.com/city/delhi/Over-Rs-8-crore-in-cash-seized-in-raids-on-a-law-firm-in-south-Delhi/articleshow/55915961.cms

Fool me once shame on you, fool me twice shame on me.

 

[prasad1]

The numbers tell their own story — 18 of the 20 major cache of currency notes are from Karnataka — a fact which mirrors the ugly underbelly of a new modus operandi of corrupt netas and babus to route unaccounted cash to money lending business.

Post-demonetization, the state’s reputation has dipped to a new low, far from its exalted status as one of the most progressive states, in the wake of a series of cases of unaccounted cash seized by officers of Income Tax and police departments.

While Prime Minister Narendra Modi is trying to banish the scourge of black money, dishonest politicians and babus have discovered a new method of converting stockpiles of currency notes albeit with the connivance of some bankers. A senior Congress leader, speaking on the condition of anonymity, described this nexus as a “mafia which fears no law”.


“This kind of transportation of pink notes cannot be possible without politicians and bureaucrats joining hands,” the leader remarked adding that while corrupt bureaucrats invest their unaccounted money on gold, foreign currency, benami property and money lending through their aides, politicians invest in real estate deals, on educational institutions, mining and money lending as well.

The leader remarked that politicians and bureaucrats have replaced corruption with a new term: service charges. These services charges have to be paid for any project to progress in a state which once took pride in the fact that the Chief Minister was brought under the purview of the Lokayukta.

Former DG&IGP, Shankar Bidari, felt that corruption has reached the zenith in the state, though cases of graft did make headlines during the last 20-25 years.

“We have reached such a stage where we need to use binoculars to spot honest officers in this corrupt system. According to me, nearly 75 per cent of the bureaucrats and 95-98 per cent of politicians are corrupt, though the degree of corruption varies,” he added.

He said cash of several crores of rupees seized recently from two government officers was only a tip of the iceberg as there were several “big fishes” in the government who enjoy political patronage. “Once any big project is cleared, a cut goes to politicians and bureaucrats before the execution,” he added.

Dr Vaman Acharya, a member of BJP/RSS think tank and former chairman of Karnataka State Pollution Control Board, remarked “according to my information, of the total 4,60,000 crore of Rs 2,000 denomination notes printed in security presses, at least 50 per cent has reached wrong hands, and the rest to common man. I feel this exercise is a failure as black money has gone back as black money in the form of pink notes. The demonitisation has not yielded the results we had expected. However, it is to be seen how the Union government takes stringent steps to check this illegal trade of new notes.”

http://www.deccanchronicle.com/nati...new-business-of-netas-babus-in-karnataka.html

If Modi does not recognize The reality, only GOD can save the country.

 

[Vaagmi]

Cash worth Rs 10.5 lakh in defunct notes of Rs 500 and Rs 1,000 was seized from a former BJP corporator near Saswad, 30 km from Pune, police said on Saturday.
The amount was seized from Ujjwal Keskar, a former BJP corporator from Pune, when he was on the way to Baramati with three others on Friday, they said.
“A team of state election commission and police seized the cash worth Rs 10.5 lakh, all in scrapped notes of Rs 500 and Rs 1,000, belonging to Keskar. Income Tax Department has been notified,” an officer from Saswad police station said.
Municipal council polls are being held in Pune district this month.
Keskar, however claimed the cash was legitimate.
“Me and my associates were on the way to my village near Baramati. After visiting my village, we were supposed to go to Panchgani. Since banks in the city are crowded, I thought I will deposit the cash in a bank in Panchgani, where I have account and hence I was carrying the cash with me,” he said.
He claimed that he had the documents to prove the cash was legitimate.
“I have handed over the documents to the IT officials and soon truth will come out,” he added.

http://www.hindustantimes.com/india...ker-in-pune/story-xsi2eAv1kP2VcfstgdsIFP.html


Did somebody say that it will reduce corruption? May be in your dreams.

Did you wait till the veracity of the news item or the truth of the statement by the concerned person come out? If so it should also have been given here. As it is not given this news becomes a hearsay. and I LOL.

 

[Vaagmi]

Raids by Delhi Police at a firm in Greater Kailash area of the national capital have unearthed more Rs 8 crore in cash.

Out of this at least Rs 2 crore is likely in new currency. The money has been seized in raids by the crime branch team of the Delhi Police.

When the police team raided the office, its rooms were locked and a caretaker was present. Police said more raids would be conducted in this connection.

"The recovered amount is expected to be more than Rs 8 crore. Out of which, more than Rs 2 crore will be in new currency notes. The I-T department has been informed and the counting of recovered cash is underway," said an officer on the spot.

http://timesofindia.indiatimes.com/city/delhi/Over-Rs-8-crore-in-cash-seized-in-raids-on-a-law-firm-in-south-Delhi/articleshow/55915961.cms

Fool me once shame on you, fool me twice shame on me.

Yes great indeed. This news proves that Modi should have made no attempt at all to go for demonetisation and the fight against black money. He should not have even opened his mouth against black money like the previous PM Moun Mohan Singh. Great lessons are being learnt from such news items. Thanks. LOL.

 

[Vaagmi]

The numbers tell their own story — 18 of the 20 major cache of currency notes are from Karnataka — a fact which mirrors the ugly underbelly of a new modus operandi of corrupt netas and babus to route unaccounted cash to money lending business.

Post-demonetization, the state’s reputation has dipped to a new low, far from its exalted status as one of the most progressive states, in the wake of a series of cases of unaccounted cash seized by officers of Income Tax and police departments.

While Prime Minister Narendra Modi is trying to banish the scourge of black money, dishonest politicians and babus have discovered a new method of converting stockpiles of currency notes albeit with the connivance of some bankers. A senior Congress leader, speaking on the condition of anonymity, described this nexus as a “mafia which fears no law”.


“This kind of transportation of pink notes cannot be possible without politicians and bureaucrats joining hands,” the leader remarked adding that while corrupt bureaucrats invest their unaccounted money on gold, foreign currency, benami property and money lending through their aides, politicians invest in real estate deals, on educational institutions, mining and money lending as well.

The leader remarked that politicians and bureaucrats have replaced corruption with a new term: service charges. These services charges have to be paid for any project to progress in a state which once took pride in the fact that the Chief Minister was brought under the purview of the Lokayukta.

Former DG&IGP, Shankar Bidari, felt that corruption has reached the zenith in the state, though cases of graft did make headlines during the last 20-25 years.

“We have reached such a stage where we need to use binoculars to spot honest officers in this corrupt system. According to me, nearly 75 per cent of the bureaucrats and 95-98 per cent of politicians are corrupt, though the degree of corruption varies,” he added.

He said cash of several crores of rupees seized recently from two government officers was only a tip of the iceberg as there were several “big fishes” in the government who enjoy political patronage. “Once any big project is cleared, a cut goes to politicians and bureaucrats before the execution,” he added.

Dr Vaman Acharya, a member of BJP/RSS think tank and former chairman of Karnataka State Pollution Control Board, remarked “according to my information, of the total 4,60,000 crore of Rs 2,000 denomination notes printed in security presses, at least 50 per cent has reached wrong hands, and the rest to common man. I feel this exercise is a failure as black money has gone back as black money in the form of pink notes. The demonitisation has not yielded the results we had expected. However, it is to be seen how the Union government takes stringent steps to check this illegal trade of new notes.”

http://www.deccanchronicle.com/nati...new-business-of-netas-babus-in-karnataka.html

If Modi does not recognize The reality, only GOD can save the country.

Just a question please: Which party is ruling Karnataka?

 

[prasad1]

Vaagmiji,
I do not have to engage with you, and I will not after this post.
if there is a Volcano erupting, you do not just throw a virgin and hope for the best. At least for logical people is to find a proper solution to save the people.

Your posts directed at me were purely retorts and do not need any explanation from me. I am not defined by any party affiliation, so I am free to criticize any wrong doing as I see it.


May be Raids were started in these states.

Cash worth Rs 10.5 lakh in defunct notes of Rs 500 and Rs 1,000 was seized from a former BJP corporator near Saswad, 30 km from Pune, police said on Saturday.The amount was seized from Ujjwal Keskar, a former BJP corporator from Pune, when he was on the way to Baramati with three others on Friday, they said.

 

[prasad1]

Raids across the country on Saturday yielded a haul of over Rs 44 crore including Rs 32 crore in new currency and 82 kg of gold.
Delhi Police raided the office of a law firm in south Delhi last Saturday night and seized Rs 13.65 crore in cash -- counted till Sunday morning -- of which Rs 2.6 crore was in new bank notes.
The raid was carried out by the Crime Branch at the office of T&T Law Firm, said a senior police officer.
When the police team raided the office, its rooms were locked and only a caretaker was present.
Police are searching for the firm promoter Rohit Tandon.
In Karnataka, the Income Tax department seized Rs 5.7 crore cash in new notes, 32kg of gold and jewellery, and Rs 90 lakh of old notes stashed inside the bathroom tiles of a hawala dealer in the remote town of Challakere.
The I-T department seized the alleged undisclosed assets from the unidentified hawala operator as part of its raids against black money hoarders.
The seizure was carried out after the I-T department’s investigation wing in Panaji began searches on Friday against casino and bullion traders in Hubballi and Chitradurga districts.

In neighbouring Tamil Nadu, the Income Tax department seized Rs 24 crore in new notes in Vellore and 50 kgs of gold from businessmen Sekhar Reddy, adding to the biggest confiscation of black money post-demonetisation.
Police officials say that the new seizure was made when I-T officials checked a car in Vellore after interrogating the three men who had been earlier arrested in Chennai two days ago when the tax operations began.
“The raided premises belong to the industrialist Sekhar Reddy, his associate and family member Srinivasalu Reddy, and their agents, including a man named Prem,” an I-T official said. So far, 4 out of the total 8 premises that have been searched,” he added.

Reddy, a prominent industrialist was also a member of the Tirumala Tirupati Devasthanam Trust Board. Following the seizures of cash and gold, Andhra Pradesh chief minister Chandrababu Naidu ordered his removal as a member of the board of trustees.
On Friday, the three men were arrested after IT officials seized Rs 90 crore in old high denomination notes and Rs 9.63 crore in the new Rs 2000 note. I-T officials also seized 127 kg gold from premises belonging to Reddy in Chennai.

http://www.hindustantimes.com/india-news/rs-32-crore-cash-in-new-notes-82-kg-gold-seized-in-major-raids-across-country/story-5j8e2XBbq2vtn6axUxNX0M.html

 

[Vaagmi]

Vaagmiji,
I do not have to engage with you, and I will not after this post.
if there is a Volcano erupting, you do not just throw a virgin and hope for the best. At least for logical people is to find a proper solution to save the people.

Your posts directed at me were purely retorts and do not need any explanation from me. I am not defined by any party affiliation, so I am free to criticize any wrong doing as I see it.


May be Raids were started at these states.

Cash worth Rs 10.5 lakh in defunct notes of Rs 500 and Rs 1,000 was seized from a former BJP corporator near Saswad, 30 km from Pune, police said on Saturday.The amount was seized from Ujjwal Keskar, a former BJP corporator from Pune, when he was on the way to Baramati with three others on Friday, they said.

Prasadji,

No problem. But I will continue to point out the wrong conclusions that you derive from your copy pasted posts regularly. I think it is my right. Engaging in a dialogue or not is your choice and I have no problem there if you choose not to engage.

A news item is presented. It says a BJP corporater had 10.5 lakhs worth of old demonetised currency and was caught. He exolained how he came into possession of that money and prima facie there is nothing fishy from his explanation. Only the facts have to be verified and then if found true he has to be let off. And if it happens to be cock and bull story he has to be charged. Without waiting for the outcome of the enquiry to jump to a conclusion is premature and that is what was pointed out by me. What is your objection? If you do not want to engage in a conversation here and think that my post was a dart aimed at you, it is your choice to live in your comfort zone of believing everything that newspapers print and publish tentatively.

Similarly with the other two posts also. My questions represent the questions that come to the mind of many readers of your posts. Being asked by Vaagmi is just a convenience. So you are expected to answer the questions for the benefit of the members of this forum.

LOL.

 

[vgane]

This time again from Karnatata! Money confiscated should be returned to the coffers and guilty punished

[h=1]CBI arrests JD(S) politician KC Veerendra, after Rs 5.7cr, 28kg gold seized from his home[/h]
The CBI also registered an FIR against four banks for allegedly diverting new currency to private individuals.

TNM Staff| Tuesday, December 13, 2016



The Central Bureau of Investigation (CBI) arrested JD(S) politician and alleged hawala operator KC Veerendra on Monday, two days after the IT department seized Rs 5.7 crore in new currency from a secret chamber in a bathroom in his house.
According to media reports, Veerendra, the son-in-law of actor Doddanna, was arrested from Challakere in Karnataka’s Chitradurga district and has been sent to CBI custody for six days.
The CBI also registered an FIR against State Bank of India, State Bank of Mysore, Kotak Mahindra Bank, and ICICI Bank – for allegedly diverting new currency to private individuals – as well as two middlemen, reported The Hindu. The report adds that the FIR, however, does not name any individual officials from any of the said banks.
On Saturday, the Panaji Directorate of the Income Tax department discovered a secret chamber in the bathroom of Veerendra, which evidently was used to store cash and gold.
According to a press release, 28kg of gold bullion, about 4kg of gold and jewelry, Rs 5.7 crore in new Rs 2000 currency notes, and Rs 90 lakh in old Rs 100 and Rs 20 notes were seized from the chamber.
Read: IT raid on hawala operator reveals secret chamber in bathroom, 5.7cr in new notes
The search operation at Veerendra’s house by the Karnataka and Goa arms of the I-T department was part of search operations carried out in a number of casinos in Goa, reports Deccan Herald.
Meanwhile, the Enforcement Directorate arrested 7 men in Bengaluru, who were involved in conversion of old currency into new. Rs 93 lakh in new currency was seized from them, reported ANI.

http://www.thenewsminute.com/articl...after-rs-57cr-28kg-gold-seized-his-home-54205

 

[prasad1]

Assam police on Monday raided a local businessman's house here and seized about Rs 1.55 crore in new Rs 2,000 and Rs 500 currency notes.
Additional Director General of Police (CID) Anil Kumar Jha told PTI that a CID team acting on a tip-off seized the money from the house of Hardie Singh Bedi, who owns a hotel and bar and runs shop rental business in the city.
He said during the operation at the house in Beltola area of the city, the police seized Rs 1,54,81,000 crore cash in new currency notes that were unveiled after demonetisation. "Out of the total amount, Rs 1,54,06,000 was in Rs 2,000 notes, while the remaining Rs 75,000 was in new Rs 500 notes," Jha said.
The police have handed over the case to income tax department and its deputy commissioner P Borah is carrying out further investigation, the senior police official added.
http://www.dnaindia.com/india/report-assam-rs155-crore-in-new-currency-notes-seized-2282239

 

[prasad1]

In what could perhaps be one of the biggest seizures of new currency in the state after the government demonetised Rs 500 and Rs 1,000, the crime branch seized Rs 1.04 crore cash, all in new notes, and detained three businessmen on Tuesday evening from the Thane Civil Hospital locality.

The detained businessmen have been identified as Gaurav Picha, Harish Raut and Chintan Rambhiya, said a police officer. Picha owns a construction business and some car accessory shops; Rambhiya owns a tyre shop and Raut is a real estate agent. All the accused are Borivli residents.

The police, after receiving a tip-off that the accused were looking for people who wanted to exchange their old currency, laid a trap and approached the trio posing as customers.
http://timesofindia.indiatimes.com/city/mumbai/Three-Borivli-bizmen-caught-with-Rs-1-crore-in-new-currency-in-Thane/articleshow/55969097.cms

I guess the other states are coming in slowly, or the enforcement is slow.
The enforcement could have stooped black money even without demonetisation.
So the question:

Just a question please: Which party is ruling Karnataka?

had no significance.

 

[prasad1]

HYDERABAD: If some people with unaccounted money are busy transferring funds into Jan Dhan Yojana accounts of others, gold traders are routing the demonetised currency into accounts of dubious clients to evade the tax radar.

The modus operandi: A gold trader first creates a dubious record book in which he shows he has made a payment to a client, who sold his old ornaments for recycling. The dubious client then deposits the amount in his bank account. The explanation for the deposit is that the money was made out of selling old ornaments before denomination.

The dummy client claims that he got the money after selling old ornaments, which were part of family legacy. As the ornaments were bought many decades ago he does not have the receipt. According to K Keshav, a CA, this money recycling practice has been going on in the gold market to avoid the demonetisation blues.

The dummy client after some days will return money to traders after deducting his cut. This is shown as sale of gold to the same person by the trader post demonetisation. In fact, gold never changes hands. It exists only in the records. All transactions are adjusted in accounts books.

In many areas traders are accepting old currency for gold at a premium of 20% to 30%, said sources with an idea of the grey market. "I purchased two kgs of gold at a premium," a businessman told.

http://timesofindia.indiatimes.com/city/hyderabad/Jewellers-recycle-old-currency/articleshow/55612377.cms?

 

[prasad1]

After PM Modi announced demonetisation of Rs 500 and Rs 1,000 old notes on November 8, there have been several instances of the Income tax department seizing unaccounted cash, in old and new notes, and gold from various locations across the country. Here are a few examples of the same.
http://timesofindia.indiatimes.com/...uge-amounts-of-money/articleshow/55914534.cms

 

[vgane]

You create any rule and there are people out there to break the rule!! It does not mean that the rule is bad!! Let us wait till 30 Dec to see the real benefits! Even the Rs 2000 note will not last long!! Hoarders & scamsters will soon face the legal consequences!!

 

[tbs]

You create any rule and there are people out there to break the rule!! It does not mean that the rule is bad!! Let us wait till 30 Dec to see the real benefits! Even the Rs 2000 note will not last long!! Hoarders & scamsters will soon face the legal consequences!!

hi
தலைக்கு மேலே வெள்ளம் போனால்.....சான் என்ன...முழம் என்ன....எல்லாம் ஒன்னு தான்...

its going happen.....THALAIKKU MELE VELLAM PONAAL...CHAAN ENNA ...MUZHAM ENNA....

 

[krish44]

Demonetisation has lead to demand compression.

Those who have big money and well off are sitting on their pile.

They try to change to new notes thru various means other than govt.

!3 lakh cr returning to banks and couple of crores to return by month end signifies that all black money has got back into the white economy. A few caught is only

tokenism.

Next election in UP,punjab will give a clue to what people think of this demonetisation and GST.

 

[vgane]

TSR Subramanian is former Cabinet Secretary of Goverment of India! Shows the positive side & what needs to be further done to leverage the benefits!!

Demonetisation: Can the Centre do more to encourage digitisation of financial transactions?

TSR Subramanian
Dec 13, 2016
[TABLE="class: content_tbl layout_brk"]
[TR]
[TD="class: PA25"][/TD]
[/TR]
[TR]
[/TR]
[TR]
[TD="class: PA25 art_content"] Over the past month or so, the main topic of national conversation has been about the demonetisation issue. Every citizen is now an 'expert', and is not reluctant to air his/her views. Each political party has settled on its own non-nuanced black or white posture.

No sensible person can seriously question that the future of India, as a nation/democracy, is bleak unless the issue of corruption and parallel economy is addressed. The demonetisation move, whatever its proximate immediate purpose, is designed to address this fundamental systemic flaw in our society and economy. The unacceptable levels of abject poverty, escalating economic disparity, coupled with poor educational and public health standards are incompatible with the ideals of a democracy, and can be traced clearly to faulty public policies followed for seven decades. Now that the first major shot to reinvent the country, and to redeem it from a downward spiral has been fired, it remains to be seen as to what the next large consequences will follow, after the initial churning is over. The expectation is that in a relatively short term, the immediate pain will subside, and the long term consequences will kick-in.
Meanwhile, we have to accept the ground realities, not keep cribbing forever, and see what further long term changes are now ushered in to consolidate this major social and economic move.
One criticism of the move has related to lack of advance preparation. This charge is not altogether valid. The fact is that over the past few years, many significant advances have been made to improve communication, digital spread, and identity creation. The Aadhaar Card system, initiated by the UPA, has been adopted by the present government with great success – the coverage even in the remotest area of Aadhaar identity is unbelievably high. Even ten years back, when the 2G scam was raging, very few would have imagined the penetration by the ubiquitous cell phone into the remotest darkest corner – with among the highest densities in the world.
The spread of Jan Dhan Accounts was treated as a joke a couple of years back – the fact is that leaving aside the children, almost all families have Jan Dhan Accounts. Digital India, with an ambitious target to cover three lakh villages was launched earlier – the programme got a major boost in the last couple of years; more than 2 lakh post offices are likely to be covered digitally in a short period of time. The use of the hand-held mobile digital transaction device, with capability to handle over 2000 transactions in one shift, even in the remotest area with no electricity or digital connectivity, capable of uploading the transactions into the digital stream on the press of a button is now a reality in most parts of India – states like Andhra Pradesh, Karnataka and Gujarat have pioneered this technology, which is rapidly used for covering the remotest area. The fact is that much preparation, quietly and unceremoniously, without fanfare has already been made in the last couple of years. Does one recall the horrible stories of leakage of MNREGA funds through unscrupulous middlemen which were in wide circulations five years back, – what happened to those stories? – the MNREGA payments now enter the accounts of the worker directly. Much quiet revolution has already taken place.
It is in this background that the question needs to be asked whether the central government mobilised all its resources in spreading the gospel of shift to digitisation in financial transactions, used all its assets on the ground and the full information machinery to support this move. In the past weeks, we have heard on the TV many experts briefly expounding on the ease of embarking on digital transactions – Amitabh Kant of Niti Aayog, Nandan Nilekani and many others have spoken of alternate means of making payments, referring to e-wallets, transfer through smart phones, use of Aadhaar Card, and indeed utilising one's own humble cell phone for this purpose. Clearly many new possibilities are now technologically available. Why have there been no publicity blitz in the TV and other media, expounding the details, enlisting the precautions, analysing the procedures, outlining the necessary steps to reach a successful outcome. Why have these not been done in the past three weeks? It is not only the illiterate villager who is afraid of the digital transaction – even many educated city people, and large segments of the population need to be induced to use digital payment routes, explained the procedures and precautions, convinced of its safety, and with gentle hand-holding brought up to change the ways in which they make the payments. Why did we not have a two-hour tutorial, explaining the various aspects in lucid terms, understandable by a common man, prepared in the various languages of India, brought into public space? Why has not this been thought of earlier? Why only make cryptic comments about possibilities, when the state apparatus can put out TV tutorials on the Youtube, Internet, film theatres, encourage replay in every village panchayat and rural school – why have these not been attempted? This is a serious gap in the implementation of the programme – at least now this gap can be filled starting from now.
The other collateral question relates to the seemingly non-optional use of the wide-spread postal department outlets, numbering 2.5 lakhs, available in nearly every village of the country. It is well known that the postal system enjoys an excellent reputation among the various government institutions, particularly in the rural areas. Why the system hasn't be seriously engaged to spread the message, and brought in to help in the cause of payments transfers is not clear. By its very nature of functioning, the banking structure is much more expensive in operation, compared to the postal structure, which has simpler less expensive operational procedures. Has the Postal system been fully utilised? Is there a rivalry between the Ministry of Finance and the Ministry of Posts, with the elder brother wanting to garner all the credit and the glory, even while catering to a national urgency? Has the postal department been overly pusillanimous, and conservative, and unwilling to rise to the occasion? Here is a huge national resource which has not been harnessed at this time of great need. Why has this serious neglect taken place? Some questions need to be raised, deserving credible answers?
The die is cast. We can't roll back the past. Bold new further moves are now required to transform this country. The nation's good wishes are with the present Prime Minister in encouraging this new wave of transformation.


http://m.firstpost.com/india/demonetisation-can-the-centre-do-more-to-encourage-digitisation-of-financial-transactions-3153632.html[/TD]
[/TR]
[/TABLE]

 

[vgane]

Demonetisation has lead to demand compression.

Those who have big money and well off are sitting on their pile.

They try to change to new notes thru various means other than govt.

!3 lakh cr returning to banks and couple of crores to return by month end signifies that all black money has got back into the white economy. A few caught is only tokenism.

Next election in UP,punjab will give a clue to what people think of this demonetisation and GST.

I do agree that demonetisation has not sucked black money..The black money has been converted to white by unscrupulous middle men...In many cases common man's jandhan accounts were also misused...But getting money into banking system should lead to a bonanza as far as taxes are concerned..Let us wait & watch