ATM Cash withdrawal limit hiked to Rs 10,000 per day

Cash withdrawal limit from ATM hiked to Rs 10,000 per day, current account limit raised to Rs 1 lakh per week

Cash withdrawal limit from ATM hiked to Rs 10,000 per day, current account limit raised to Rs 1 lakh per week

In a major relief for the common man post the demonetisation move, the Reserve Bank of India on Monday raised the cash withdrawal limits from ATM to Rs 10,000 per days from the existing Rs 4,500.

The hike in withdrawal limit comes with immediate effect, the Reserve Bank of India said in a statement.

However, cash withdrawal through cheque for saving bank accounts have been retained at Rs 24,000 per week.

The RBI also hiked the cash withdrawal from current accounts to Rs 1 lakh per week from the existing Rs 50,000.

As per the RBI statement, the limit on withdrawals from ATMs has been enhanced from the current limit of ₹ 4,500/- to ₹ 10,000/- per day per card (It will be operative within the existing overall weekly limit).

The limit on withdrawal from current accounts has been enhanced from the current limit of ₹ 50,000/- per week to ₹ 1,00,000/- per week and it extends to overdraft and cash credit accounts also, the RBI further stated.

However, there are no changes in the other conditions with the Reserve Bank stating that the relaxations as provided in our circular dated November 28, 2016 will continue.

Following the demonetisation move announced by Prime Minister Narendra Modi on November 8, 2016, the RBI had limited the cash withdrawal from ATM at Rs 2,500 which was later hike to Rs 4,500 on New Year’s eve effective from January 1, 2017.

-January 16, 2017, New Delhi

 

Need bold reforms to transforms economy: Arun Jaitley

Need bold reforms to transform economy: Arun Jaitley

Need bold reforms to transform economy: Arun Jaitley

Finance Minister Arun Jaitley on Wednesday said that bold reforms are required to transform economy.

Speaking at the 8th edition of Vibrant Gujarat Summit in Gandhinagar, Jaitely said, “India needs bold decisions, time now to clean up table.”

Jaitley said that India was substantially a non tax-compliant society and demonetisation can lead to more formal banking transactions, thus nudging the society towards more compliance.

“We are substantially in terms of taxation, a non-compliance society. The narrowness of our tax base is realised by the data. Formal transactions can lead to higher revenues, and make us more compliant,” Jaitley said.

“Difficult decisions initially pass through difficult phases,” he added.

Jaitley said that excessive paper currency has its own vices, it leads to its own temptations.

Stating that GST and demonetisation will boost growth, the finance minister said that its impact will be seen this year. Talking on the demonetisation of high value currency notes, FM added, ” After transient impact, demonetisation will lead to cleaner and larger GDP”.

-January 11, 2017, New Delhi

 

BJP wins municipal corporation elections in Faridabad

Faridabad municipal corporation elections results: BJP creates history, wins 30 out of 40 seats

Faridabad municipal corporation elections results: BJP creates history, wins 30 out of 40 seats

Registering yet another victory in local body elections, BJP has bagged 30 out of 40 seats in Faridabad municipal corporation elections.

Creating history, BJP won 30 out of 40 seats with 10 going to independent candidates.

Win a people’s approval of demonetisation

Projecting BJPs win in Faridabad local polls as a victory of the party’s “pro-development” ideology, its president Amit Shah said it was yet another evidence of people’s approval of demonetisation as the party has won polls across states since the decision was taken.

‘Sabka saath, sabka vikaas’

“This historic win is a victory of BJPs ideology of ‘sabka saath, sabka vikas’ and the pro-development agenda. In every election following demonetisation, people of the country have put their stamp of approval on it,” Shah said in a statement.

Referring to his party’s performance in various polls in states like Rajasthan, Madhya Pradesh, Gujarat and Maharashtra besides the Union Territory of Chandigarn, he claimed it is now clear that the opposition is merely doing politics over notes ban while people are supporting Prime Minister Narendra Modi in building an honest India.

“This is the sixth consecutive win of BJP in local polls after demonetisation,” Shah noted.

-January 9, 2017, New Delhi

Indian economy to grow 6.8% in 2016-17, says Icra

7.1% GDP estimate erroneous, Indian economy to grow 6.8% in 2016-17, says Icra

7.1% GDP estimate erroneous, Indian economy to grow 6.8% in 2016-17, says Icra

These are testing times for the Modi government, though it is fighting against odds in curbing corruption and triggering growth engine of the economy.

The arsenal thrown at government this time has come from domestic rating agency Icra, and not from the Opposition camp.

IANS reported Icra’s claim that advance estimate of 7.1 percent GDP released by Central Statistical Organisation (CSO), will have major errors as it does not include the data for the months after demonetisation.

The agency on Friday pegged the expected growth for 2016-17 lower at 6.8 percent.

 “Given the impact of demonetisation on actual activity from mid-November 2016 onward, projecting GDP growth for the full year by extrapolating the trends up to October 2016 for several sectors, may introduce more errors than in earlier years. This would be particularly apt for cash intensive sectors such as construction,” Icra said in a statement.

The advance estimates released by the CSO of growth in FY2017 are unsurprising, as they draw heavily from the available data for the first half of this fiscal, it said.

“However, Icra expects GDP (gross domestic product) and GVA (gross value added, which excludes taxes and subsidies) growth for FY2017 at 6.8 per cent and 6.6 per cent respectively, appreciably lower than the advance estimates,” it said.

The CSO pegged the country`s gross domestic product at 7.1 per cent in 2016-17 compared with 7.6 per cent in 2015-16.

The anticipated growth of real GVA in 2016-17 is 7 per cent against 7.2 per cent in 2015-16, according to CSO estimates.

“The growth in deposits is an outlier, hence November data was not used for the financials,” India`s Chief Statistician T. C. A. Anant had said, implying that demonetisation is not a normal factor in the calculation of annual national income.

Icra said: “Given the unfolding trends, we expect actual FY2017 growth to be lower than the advance estimates for sub-sectors such as manufacturing, agriculture, electricity and construction.”

In contrast, the recent uptick in commodity prices may well result in a somewhat improved GVA performance of the mining sector in H2 FY2017 as compared to the year-on-year decline in the first six months of FY2017, the agency added.

“Moreover, the unavailability of corporate filings for third quarter of FY2017 and second advance estimates of rabi output (as opposed to the available data on sowing), are likely to constrain the accuracy of the advance estimates,” the statement said.

While rabi sowing has grown by a healthy 7 percent on a subdued base, activity and incomes related to non-crop agricultural sectors including horticulture and livestock may have been adversely impacted by the liquidity crunch, it added.

-January 7, 2017, New Delhi

 

Transparency in political funding is needed: Modi

Need to make our political funding, process more transparent: PM Modi

Need to make our political funding, process more transparent: PM Modi

 Addressing the two-day National Executive meeting of the Bhartiya Janta Party’s (BJP) here on Saturday, Prime Minister Narendra Modi commended the “Karyakartas” for the party’s gains in 2016 and urged them to gear up for the forthcoming Assembly elections in five states.

“Our commitment is to change quality of life of poor. Demonetisation is part of long term measures against corruption and black money,” PM Modi said in his address at the BJP conclave.

PM Modi rallied the party workers to use their organisational strength to win over the poor and said that “serving the people amounts to serving God”.

Briefing the media on what the PM spoke at the meet, union minister Ravi Shankar Prasad said that the prime minister called for “transparency in political funding” which the “BJP firmly supports”.

“PM observed very significantly that we need to make our political process more transparent, particularly spoke about political funding,” Prasad said.

“Some people worry about lifestyle but our priority is to make quality of life better for the poor and underprivileged,” Prasad quoted the PM as saying.

“PM saluted inner strength of poor who responded to his appeal, inspite of some difficulties,” Prasad added.

The members at the meet lauded the prime minister for his extraordinary move on demonetisation, which they declared a huge success, and cross-border surgical strikes against Pakistani terrorists.

Party president Amit Shah also praised PM Modi for India’s stance after the Uri attack.

“Because of the leadership and will power of the Prime Minister, for the first time in independent India, we gave a fitting reply by entering the enemy’s own home… this one decision changed the way the world looks at India,” Shah said.

He stressed that demonetisation would help the country get rid of corruption.

The meeting also recounted the party’s win in Assam and the formation of its government in Arunachal Pradesh.

The party’s national executive, which began in the national capital on Friday, also praised the armed forces and slammed Pakistan for unleashing terror in the country.

“Terrorism is today seen by the democratic and civilised world as a scourge whereas Pakistan continues to use it as state policy. It continues to push terrorists into India and other countries and engages in terror attacks and promotes violent insurgent and separatist movement in J&K.

“The surgical strikes ordered by the Prime Minister and total rejection of the separatist agenda by the people and governments of J&K and the Centre are a categorical assertion to Pakistan that its ulterior designs shall never succeed and the government led by PM Modi will continue to demonstrate zero tolerance for terrorism,” reads the resolution adopted by the party’s national executive.

The next BJP National Executive meeting scheduled to take place on April 15 and 16.

-January 7, 2017, New Delhi

 

RBI asks banks to supply 40% of notes to rural areas

RBI asks banks to supply 40% of notes to rural areas

To mitigate hardships of poor and marginal farmers due to cash deficit following demonetisation, the RBI directed banks to distribute at least 40 per cent of currency notes in rural areas.
The 50-day exercise ended on December 30, but the cash supply situation is yet to ease in certain pockets. As a result, the government has not lifted the withdrawal ceiling of Rs 24,000 per week.
 RBI
On observing that bank notes being supplied to rural areas is not commensurate with the local requirements, some steps have already been initiated, RBI said in a notification.
With a view to ensuring at least 40 per cent bank notes are supplied to rural areas and mitigating the issue in a more enduring manner, the banks maintaining currency chests are advised various steps, including liberal issuance of the existing stock of other denomination notes below Rs 100.
“Banks should advise their currency chests to step up issuance of fresh notes to rural branches of regional rural banks (RRBs), district central cooperative banks (DCCBs) and commercial banks, white label ATMs and post offices in rural areas on a priority basis which are considered as main rural channels of distribution,” it said.
The directive came just a couple of days after Prime Minister Narendra Modi in his address to the nation on the eve of new year exhorted banks to make efforts to restore normalcy as fast as possible and should focus on rural areas.
“I have asked all officers concerned in the government to focus their attention on this task. They have especially been told to proactively resolve the problems in rural and remote areas,” Modi had said.
According to the statement, banks should follow need-based approach for supply of currency as rural requirements could vary from district to district, depending on variations in the rural and urban mix of each district.
Each district has different CASA deposits shares and deposit accounts. RBI has already mapped each district of every state and also made estimates of the requirement.
Accordingly, all chests operating in a district must issue bank notes to distribution channels in the indicated proportion, it said. “The indicated proportion may be maintained on a weekly average basis at each chest level as it may be difficult to stick to the proportion on daily basis,” it added.
-03 January, 2017 | PTI | Mumbai

Demonetisation is a Big Bang reform: Surjit Bhalla

Demonetisation is a Big Bang reform

By: Surjit Bhalla

One of the more endearing, and enlightening, acronym that the Indian upper class has come up with is PLUs—People Like Us. Both the Indian, and Western PLUs have been clamouring for Big Bang reforms for the last two and a half years. The demand had a lot of merit—for the first time in 25 years, there was a government with a clear majority in the Lok Sabha. While several economic reforms were initiated since May 2014, and by my calculation more than the cumulative set of reforms since (but not including 1991), the PLUs were not satisfied and bayed for more—yeh “liberal” maange more. Finally, when PM Modi delivered the Big Bang, the PLUs were so deafened that they refused to see the writing on the reform wall.

DemonetisationBut why did the intelligentsia and mainstream media (domestic and especially foreign) did not see that demonetisation was (obviously) part of a BIG Bang reform? For one simple reason—the battle is ideological, and has precious little to do with the content of reform. And PLUs ideology dictates that whatever any non-Congress government does, has to be wrong, immoral, and illiberal. Soon after the May 2014 election, I suggested that the big story of the election was the forthcoming battle between the old elite, and the new, yet to be formed, elite. A battle between the established middle class, and the new middle class. A battle between the amoral naam-ke-waste liberal policies of the last 70 years, and a vision, and accompanying policies, for a transformed India.

Demonetisation 2016 only confirms that the battle of the elites is the one forecast I did get right. The old elite keeps stating three arguments in support of their defense that demonetisation has been a failure. The first, Rottweiler like, that demonetisation has failed because most of the old banned notes have been deposited in banks. The purpose of demonetisation, according to PLUs and their voting outlet, the Congress, was that a large chunk (possibly R2-4 lakh crore) of banned notes would not return to the system. The fact that money not returned is likely to be lower than the lowest estimate means that D-policy has failed. But who said that this was even a minor goal of demonetisation? The old elite, of course.

The second focus of the ideological view that D-policy has been a failure is the botched-up implementation. To repeat this as the reason to reject D-policy is myopia of the worst kind. Of course, implementation has been bad; even the government (and RBI) admits to it, as revealed by the much noted fact that the government has changed policy on a daily basis. Having noted this dog bites man fact, let us proceed. If the government had all the time in the world, of course the implementation would have been as perfect as the Kumbh Mela or the annual Republic Day parade. Secrecy was required, and there is a near certain likelihood that D-day was preponed because the secret was getting out. So, can one really call it a botch-up? If you are the old elite, then what other weapon have you got to disagree, complain, and question?

But there is a third option. Document and rightfully complain about the fact that people, especially poor people, have been inconvenienced—they have to stand in queues with no return (all puns intended). This is not surprising, even though it is revolting. The Left-liberal apologists for the rich have always shot-off the backs of the bottom half. This half has been hurt by D-policy in terms of jobs lost, and income not received. What is remarkable is that not only have they not complained about this genuine loss, but they have verbally, actively, and in the poll booth supported the Big Bang initiative.

The bottom 90% realises that those hurt by D-policy are the old elite, amongst whom are a large proportion of those gaming the system by laundering their black money via the other 90 %. A truly shocking fact just revealed by the government is that 6 million units (individuals, small firms and NGOs) have deposited a total of R7 lakh crore of the banned notes. That is an average of R11 lakh (or $15,000) per unit.

I would like to hear from the PLUs—how many elites do they know in the Western world who keep an average of $15,000 of cash at home? These very same elites had opposed demonetisation on the grounds that there was very little black cash in the economy because the bad rich were too smart to have any black cash. The fact that there was a lot of extra cash in the economy has two immediate implications. The government must continue with its policy of limiting cash withdrawals after December 30—no more than R1 lakh per individual and no more than R5 lakh per firm. Second, that no more than say R11 lakh crore of new cash (a comfortable excess of what is really required) of the banned R15.4 lakh crore should be printed. These are important steps to foil any attempts to keep the old order, and to encourage the ringing of the new.

India 2016 is very likely to go down in history as comparable to China 1978. Fifty days later after D-day is too soon to pass judgement. One hundred and fifty days later the transformative power of D will (hopefully) become obvious.

Courtesy: financialexpress.com,  December 31, 2016

http://www.financialexpress.com/opinion/demonetisation-is-a-big-bang-reform-surjit-bhalla/491906/

Demonetisation;4-year jail for possession of old Rs 500, Rs 1,000 notes

Ordinance on demonetisation gets Cabinet nod; 4-year jail for possession of old Rs 500, Rs 1,000 notes

Ordinance on demonetisation gets Cabinet nod; 4-year jail for possession of old Rs 500, Rs 1,000 notes

The Union cabinet on Wednesday approved the Ordinance on deadline to deposit old notes. Name of the Ordinance is ‘The Specified Bank Notes Cessation of Liabilities Ordinance’.

he Ordinance is to extinguish liability of government and RBI on the demonetised high-denomination notes.

The Cabinet also cleared promulgation of an ordinance to penalise persons holding junked Rs 500, 1,000 notes.

As per the Ordinance, people involved in transaction of old notes will face penalty of Rs 5000, while those possessing old notes in excess of 10 notes post March 31 will face 4-year Jail term in certain cases.

Official sources said the ordinance has been cleared, but did not say if the penal provisions would apply for holding the junked currency after the 50-day window to deposit them in banks ends as of December 30 or after March 31, till which time deposit of old currency notes at specified branches of the Reserve Bank after submitting a declaration form is open.

In 1978, a similar ordinance was issued to end the government’s liability after Rs 1,000, Rs 5,000 and Rs 10,000 notes were demonetised by the Janata Party government under Morarji Desai.

The government had, while announcing the demonetisation of the old currency on November 8, allowed holders to either exchange them or deposit in bank and post office accounts. While the facility to exchange the old notes has since been withdrawn, depositors have time till Friday to deposit the holding in their accounts.

-December 28, 2016 |PTI| New Delhi

 

Demonetisation destroyed terror, underworld, drug mafia: Modi

Demonetisation has destroyed terror, underworld, drug mafia: Modi

Prime Minister Narendra Modi addressed a ”parivartan maha” rally in Dehradun, Uttarakhand, said Demonetisation has destroyed terror, underworld, drug mafia.

Demonetisation

Following are excerpts from his speech:

* Uttarakhand is the land of Gods and the land of the brave (since Uttarakhand makes a large contribution to the armed forces).

* The large number of people present here is a sign that Uttarakhand will not wait anymore for development [& will vote the BJP to power].

* The foundation laying ceremony for the all-weather road project today is a tribute to the people who lost their lives in the 2013 Uttarakhand disaster.

* The all-weather road project is dedicated to all the people of the country who wish to travel to the Ganga and the shrines of Badrinath, Kedarnath, Gangotri and Yamunotri.

* The Rs. 12,000 crore that will be spent on the project will bring in employment for youth of Uttarakhand.

* Tourism is the main source of the State’s economy. Developing resources to enhance tourism in Uttarakhand will work for the benefit of the State and we wish to work on it.

* We wish to make Uttarakhand ia State where people are not forced to move to over-crowded cities in search of employment.

* Our rural electrification plan is not for the rich. It is for the poor.

* I have worked in Uttarakhand for years as an [RSS] worker and I’m aware of the difficult life of the hills. Therefore, we took on the responsibility to distribute cooking gas cylinders to the women of Uttarakhand for smoke free cooking. Is this scheme for the benefit of the rich?

On one rank one pension

The demand for OROP was a long-pending demand. However, they [the Congress, when it was in power] gave Rs. 500 crore for OROP. They made a fool of the people. Rs. 10,000 crore was needed for it. We have provided Rs. 6,600 crore so far and the rest will be provided soon. Thousands of Uttarakhand residents are beneficiaries of the money that we have provided under OROP.

”Have you made me a PM for cutting ribbons and lighting lamps? You have entrusted me with the work of a watchman. But objections are being raised when I am doing my duty, the duty of a watchman…. My fight against black money and corruption is on.

”The money of the poor that was looted by the rich must be returned to the people of the country. But, the habits of the corrupt don’t go easily. They used other means to exchange the old 500 and 1,000 rupee notes. But, they are being caught now. The people of the country have supported and protected me, otherwise I don’t know what they [the corrupt] would have done to me by now.

”I know that the people of the country had to undergo a lot of trouble [because of demonetisation] and I am indebted for the support that the people have given me.

”The world of terrorism, underworld, drug mafia was destroyed due to demonetisation.

”I am fighting to make the honest people more powerful. It will be a long fight and I need the support of the people of Uttarakhand too to win the fight [against loot and corruption]

”Atal Bihari Vajpayee ji gave us Uttarakhand. To make it better is my responsibility.”

DECEMBER 27, 2016

Anand Kumar under IT scanner over benami properties

Mayawati’s brother Anand Kumar under Income Tax scanner over benami properties

Mayawati's brother Anand Kumar under Income Tax scanner over benami properties

In a blow to BSP supremo Mayawati ahead of Uttar Pradesh Assembly elections,Income Tax department has issued a notice her brother Anand Kumar in connection with benami properties.

Reportedly, the Income Tax (IT) officials are probing an alleged nexus between Anand Kumar and real estate players.

The IT department has sent notices to several builders as well in this regard.

Noteworthy, the development came a day after PM Narendra Modi vowed to carry forward the war against corruption and black money post demonetisation.

In a big statement, Prime Minister Narendra Modi on Sunday had said the government will soon operationalise a strong law to effectively deal with ‘benami’ properties.

He made this statement in his last monthly address this year in his “Mann ki Baat” programme.

-December 26, 2016, New Delhi