The Reserve Bank has&nbsp;said that the cash withdrawal limit from ATMs will be increased to Rs 4,500 per day from the current Rs 2,500 starting from&nbsp;January 1.

However, there has been no change in the weekly withdrawal limit, which stands at Rs 24,000, including from ATM, for individuals (Rs 50,000 in case of small traders).

&quot;On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 1, 2017, from the existing Rs 2,500 to Rs 4,500 per day per card,&quot; the central bank said in a notification.

Following demonetisation of old Rs 500/1000 notes on November 9, limits had been imposed on withdrawal of cash from banks as well as ATMs.

The Reserve Bank&#39;s notification further stated &quot;there is no change in weekly withdrawal limits&quot; and such disbursals &quot;should predominantly be in the denomination of Rs 500&quot;.

Earlier in the day, the RBI had permitted White Label ATM Operators (WLAOs) to source cash from retail outlets.

Most of the White Label ATMs are running dry since demonetisation as the operators were facing difficulties in sourcing cash from their sponsor bank(s).

Today was the last day to deposit the invalid currency notes in banks. However, people still have time to exchange the currency notes at designated RBI counters until&nbsp;March 31 after giving valid reasons for not depositing defunct notes in their accounts by December 30.

(PTI)

But the weekly withdrawal limit of Rs 24,000 remains the same

The Reserve Bank has said that the cash withdrawal limit from ATMs will be increased to Rs 4,500 per day from the current Rs 2,500 starting from January 1. However, there has been no change in the weekly withdrawal limit, which stands at Rs 24,000, including from ATM, for individuals (Rs 50,000 in case of small traders). "On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 1, 2017, from the existing Rs 2,500 to Rs 4,500 per day per card," the central bank said in a notification. Following demonetisation of old Rs 500/1000 notes on November 9, limits had been imposed on withdrawal of cash from banks as well as ATMs. The Reserve Bank's notification further stated "there is no change in weekly withdrawal limits" and such disbursals "should predominantly be in the denomination of Rs 500". Earlier in the day, the RBI had permitted White Label ATM Operators (WLAOs) to source cash from retail outlets. Most of the White Label ATMs are running dry since demonetisation as the operators were facing difficulties in sourcing cash from their sponsor bank(s). Today was the last day to deposit the invalid currency notes in banks. However, people still have time to exchange the currency notes at designated RBI counters until March 31 after giving valid reasons for not depositing defunct notes in their accounts by December 30. (PTI)

Demonetisation: ATM withdrawal limit up to Rs 4,500 per day starting Jan 1

Three members of a stone-pelting group were injured when Indian security forces were conducting sweeps in two areas in strife-torn Kashmir&#39;s Pulwama district on Friday.

The incident occurred when forces were on a search operation in&nbsp;Naristan and Samboora areas of the district in the morning after they received information about&nbsp;movement of suspicious persons there, Indian police said.

A few locals chucked projectiles at the search team at the closing stages of the operation. The security personnel then fired&nbsp;a few rounds to disperse the mob, injuring three locals in the process.

The wounded have been admitted to a hospital for treatment, an unnamed police officer said.

The latest incident occurred despite the Indian government&#39;s claim that such kind of attacks have been nixed in Kashmir following demonetisation.

The Indian government has long been of the view that stone-pelters are paid cash by Kashmiri separatists to create problems in the riven state. But India&#39;s defence minister believed that the cash scrap had hobbled the finances of Kashmiri separatists.

&quot;Earlier, there were rates: Rs 500 for&nbsp;<a href="http://www.business-standard.com/search?type=news&amp;q=Stone+Pelting" target="_blank">stone pelting&nbsp;</a>(on&nbsp;<a href="http://www.business-standard.com/search?type=news&amp;q=Security+Forces" target="_blank">security forces&nbsp;</a>in Kashmir) and Rs 1,000 for doing something else. PM has brought terror funding to zero,&quot; Parrikar had said in November, implying that cash replacement had stonewalled terror-funding in Kashmir.&nbsp;

&quot;In the last few days after PM&#39;s daring move there hasn&#39;t been&nbsp;<a href="http://www.business-standard.com/search?type=news&amp;q=Stone+Pelting" target="_blank">stone pelting&nbsp;</a>on security forces. I congratulate PM for it,&quot; Parrikar had further said.

Kashmir shutdown

Meanwhile, normal life was affected in Kashmir valley today due to a strike called by separatists against the issuance of identity certificates to West Pakistan Refugees (WPRs).

Most of the shops, fuel stations and other business establishments in Srinagar - the summer capital of the state - were shut, while public transport was minimal.

They said there were very few street vendors visible in the city today due to the strike.

Security forces were deployed in strength at sensitive places where barricades were also erected.

The separatists have also been calling for shutdown&nbsp;on Friday&nbsp;and&nbsp;Saturday&nbsp;every week after scaling down their agitation which followed the killing of Hizbul Mujahdeen militant Burhan Wani.

The more than five-month unrest in the Valley had left 86 people dead and thousands others, including 5,000 security personnel, injured.

The separatist groups - both factions of Hurriyat Conference and JKLF - yesterday appealed the people to observe a complete shutdown&nbsp;on Friday&nbsp;and&nbsp;Saturday&nbsp;over WPR issue.

They alleged that the decision on issuance of identity certificates to WPR was aimed at changing the demography of Jammu and Kashmir.&nbsp;

(WION with inputs from PTI)

A group of people chucked projectiles at a security team searching for troublemongers in troubled Pulwama district

Three members of a stone-pelting group were injured when Indian security forces were conducting sweeps in two areas in strife-torn Kashmir's Pulwama district on Friday. The incident occurred when forces were on a search operation in Naristan and Samboora areas of the district in the morning after they received information about movement of suspicious persons there, Indian police said. A few locals chucked projectiles at the search team at the closing stages of the operation. The security personnel then fired a few rounds to disperse the mob, injuring three locals in the process. The wounded have been admitted to a hospital for treatment, an unnamed police officer said. The latest incident occurred despite the Indian government's claim that such kind of attacks have been nixed in Kashmir following demonetisation. The Indian government has long been of the view that stone-pelters are paid cash by Kashmiri separatists to create problems in the riven state. But India's defence minister believed that the cash scrap had hobbled the finances of Kashmiri separatists. "Earlier, there were rates: Rs 500 for stone pelting (on security forces in Kashmir) and Rs 1,000 for doing something else. PM has brought terror funding to zero," Parrikar had said in November, implying that cash replacement had stonewalled terror-funding in Kashmir. "In the last few days after PM's daring move there hasn't been stone pelting on security forces. I congratulate PM for it," Parrikar had further said. Kashmir shutdown Meanwhile, normal life was affected in Kashmir valley today due to a strike called by separatists against the issuance of identity certificates to West Pakistan Refugees (WPRs). Most of the shops, fuel stations and other business establishments in Srinagar - the summer capital of the state - were shut, while public transport was minimal. They said there were very few street vendors visible in the city today due to the strike. Security forces were deployed in strength at sensitive places where barricades were also erected. The separatists have also been calling for shutdown on Friday and Saturday every week after scaling down their agitation which followed the killing of Hizbul Mujahdeen militant Burhan Wani. The more than five-month unrest in the Valley had left 86 people dead and thousands others, including 5,000 security personnel, injured. The separatist groups - both factions of Hurriyat Conference and JKLF - yesterday appealed the people to observe a complete shutdown on Friday and Saturday over WPR issue. They alleged that the decision on issuance of identity certificates to WPR was aimed at changing the demography of Jammu and Kashmir. (WION with inputs from PTI)

Kashmir stone-pelting injures three, upends demonetisation theory

As the 50-day window to deposit scrapped higher denomination notes in banks ended today, less rush was witnessed at various city banks.

A senior executive with a private sector bank said only few people visited their branch in South Mumbai here today on the last day&nbsp;of depositing old Rs 500 and Rs 1,000 notes as compared to the initial days of demonetisation.

&quot;Situation from last one week is just like any other regular day at the bank,&quot; he said.

&quot;I deposited all my savings in the first two weeks after demonetisation was announced. I wish I would have been more patient and&nbsp;deposited it in the last few days as there is no rush at my nearest bank branch,&quot; Ghatkopar resident Shyamlal Dhulia said.

Meanwhile, queues to withdraw cash also truncated as many ATMs continued to remain shut.

Dhulia said three ATMs in the vicinity of his house have been functioning intermittently in the last one month.

Juhu-based entrepreneur Sunil Sharma said panic among people during the initial days (of demonetisation) had led customers&nbsp;rushing to banks and deposit their money.

&quot;Honest tax payers should have been provided with some arrangement or should have been given preferential treatment to deposit&nbsp;or exchange their cash,&quot; he said.

A grocery shop owner in suburban Andheri said, &quot;Though there is no maddening queues outside ATMs, but cash crunch still persists, specifically for current account holders.&quot;

Nagesh Dubey, a chartered accountant, said the step will prove to be beneficial in the long run and that it was needed for the&nbsp;overhaul the currency management.

&quot;The demonetisation process is going to overhaul the entire currency management and will also bring unaccounted money into the system which will provide a road-map to the government to launch and execute developmental projects. This is going to be beneficial in the long run.&quot;&nbsp; 
 
(PTI)

Queues to withdraw cash also truncated as many ATMs continued to remain shut.

As the 50-day window to deposit scrapped higher denomination notes in banks ended today, less rush was witnessed at various city banks. A senior executive with a private sector bank said only few people visited their branch in South Mumbai here today on the last day of depositing old Rs 500 and Rs 1,000 notes as compared to the initial days of demonetisation. "Situation from last one week is just like any other regular day at the bank," he said. "I deposited all my savings in the first two weeks after demonetisation was announced. I wish I would have been more patient and deposited it in the last few days as there is no rush at my nearest bank branch," Ghatkopar resident Shyamlal Dhulia said. Meanwhile, queues to withdraw cash also truncated as many ATMs continued to remain shut. Dhulia said three ATMs in the vicinity of his house have been functioning intermittently in the last one month. Juhu-based entrepreneur Sunil Sharma said panic among people during the initial days (of demonetisation) had led customers rushing to banks and deposit their money. "Honest tax payers should have been provided with some arrangement or should have been given preferential treatment to deposit or exchange their cash," he said. A grocery shop owner in suburban Andheri said, "Though there is no maddening queues outside ATMs, but cash crunch still persists, specifically for current account holders." Nagesh Dubey, a chartered accountant, said the step will prove to be beneficial in the long run and that it was needed for the overhaul the currency management. "The demonetisation process is going to overhaul the entire currency management and will also bring unaccounted money into the system which will provide a road-map to the government to launch and execute developmental projects. This is going to be beneficial in the long run." (PTI)

Demonetisation: No mad rush in banks on last day of depositing old notes

December 30 marks the end of the 50-day period Prime Minister Narendra Modi had sought to ease the initial pain of demonetisation. It also marks the end of the deadline to deposit the old Rs 500 and Rs 1000 notes or to exchange them at the banks for legal tenders.

However, people will still be allowed to deposit the old bank notes at the Reserve Bank of India (RBI).

The ordinance on demonetised currency does not propose a jail term for those holding more than 10 junked notes after the final March 31, 2017, deadline, but imposes a minimum fine of Rs 10,000.

The draft ordinance, which will be sent to President Pranab Mukherjee for his assent, will come into force from December 31.

There was a proposal for prescribing a four-year jail term, but the draft ordinance does not contain any such provision.

Those keeping the junked notes for &quot;study, research or numismatics&quot; purposes would be exempt from penalty provided they hold not more than 25 number of such notes irrespective of the denomination.

Besides, people authorised by RBI or its agencies or those holding junked notes under directions of a court would also not be penalised, as per Section 5 of the draft ordinance.

It provides for making holding of old Rs 1,000 and 500 notes after March 31 a criminal offence that will attract a fine of Rs 10,000 or five times the cash held, whichever is higher.

According to Section 6 of the &#39;Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016&#39;, whoever knowingly and wilfully makes any false declarations regarding junked notes would be liable for a fine &quot;which may extend to Rs 50,000 or five times the amount of the face value of specified bank notes tendered, whichever is higher&quot;.

The ordinance also provides for amending the Reserve Bank of India (RBI) Act, 1934 to provide legislative support for extinguishing the central bank and government&#39;s liability on the demonetised banknotes that are not returned.

While the deadline for the deposit of old currency in bank or post office accounts expires on Friday, there is time till March 31 for depositing them at select RBI counters with stiff conditions.

Sources said a proposal for a four-year jail term for anyone possessing large number of demonetised currency after March 31, 2017 was not approved by the Cabinet.

As per the draft ordinance, citizens who were abroad between November 9 and December 30 are entitled to deposit the junked notes till March 31 with RBI.

The government would also bring out a separate notification for &quot;such class of persons and for such reasons as may be specified&quot; to ensure that people are not harassed and those with genuine reasons can deposit the cancelled notes.

At the time of announcing demonetisation of old Rs 500 and Rs 1,000 notes on November 8, the government had allowed holders to either exchange them or deposit in bank and post office accounts.

According to the government, the main reason for bringing out the ordinance is to &quot;have clarity and finality to the liabilities of the Reserve Bank of India (RBI) and the central government&quot; arising from the demonetisation of high value currency notes.

In case of companies found holding more than 10 junked notes, action would be taken against the officials concerned.

Proceedings could be initiated against &quot;any director, manager, secretary, or other officer or employee&quot; of the particular company.

The ordinance also provides safeguard for the government and the central bank from facing any legal proceedings.

&quot;No suit, prosecution or other legal proceeding shall lie against government, RBI or any of their officers for anything or intended to be done in good faith under this ordinance,&quot; it noted.

In 1978, a similar Ordinance was issued to end the government&#39;s liability after Rs 1,000, Rs 5,000 and Rs 10,000 notes were demonetised by the Morarji Desai-led government.

Sources said the legal amendments are needed every time the government decides to scrap any legal tender to put an end to its promissory note.

Of the Rs 15.4 lakh crore worth of currency that was scrapped, about Rs 14 lakh crore has been deposited in banks or exchanged.

&nbsp;

(PTI)

December 30 is the last day to deposit old Rs 500 and Rs 1,000 notes

December 30 marks the end of the 50-day period Prime Minister Narendra Modi had sought to ease the initial pain of demonetisation. It also marks the end of the deadline to deposit the old Rs 500 and Rs 1000 notes or to exchange them at the banks for legal tenders. However, people will still be allowed to deposit the old bank notes at the Reserve Bank of India (RBI). The ordinance on demonetised currency does not propose a jail term for those holding more than 10 junked notes after the final March 31, 2017, deadline, but imposes a minimum fine of Rs 10,000. The draft ordinance, which will be sent to President Pranab Mukherjee for his assent, will come into force from December 31. There was a proposal for prescribing a four-year jail term, but the draft ordinance does not contain any such provision. Those keeping the junked notes for "study, research or numismatics" purposes would be exempt from penalty provided they hold not more than 25 number of such notes irrespective of the denomination. Besides, people authorised by RBI or its agencies or those holding junked notes under directions of a court would also not be penalised, as per Section 5 of the draft ordinance. It provides for making holding of old Rs 1,000 and 500 notes after March 31 a criminal offence that will attract a fine of Rs 10,000 or five times the cash held, whichever is higher. According to Section 6 of the 'Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016', whoever knowingly and wilfully makes any false declarations regarding junked notes would be liable for a fine "which may extend to Rs 50,000 or five times the amount of the face value of specified bank notes tendered, whichever is higher". The ordinance also provides for amending the Reserve Bank of India (RBI) Act, 1934 to provide legislative support for extinguishing the central bank and government's liability on the demonetised banknotes that are not returned. While the deadline for the deposit of old currency in bank or post office accounts expires on Friday, there is time till March 31 for depositing them at select RBI counters with stiff conditions. Sources said a proposal for a four-year jail term for anyone possessing large number of demonetised currency after March 31, 2017 was not approved by the Cabinet. As per the draft ordinance, citizens who were abroad between November 9 and December 30 are entitled to deposit the junked notes till March 31 with RBI. The government would also bring out a separate notification for "such class of persons and for such reasons as may be specified" to ensure that people are not harassed and those with genuine reasons can deposit the cancelled notes. At the time of announcing demonetisation of old Rs 500 and Rs 1,000 notes on November 8, the government had allowed holders to either exchange them or deposit in bank and post office accounts. According to the government, the main reason for bringing out the ordinance is to "have clarity and finality to the liabilities of the Reserve Bank of India (RBI) and the central government" arising from the demonetisation of high value currency notes. In case of companies found holding more than 10 junked notes, action would be taken against the officials concerned. Proceedings could be initiated against "any director, manager, secretary, or other officer or employee" of the particular company. The ordinance also provides safeguard for the government and the central bank from facing any legal proceedings. "No suit, prosecution or other legal proceeding shall lie against government, RBI or any of their officers for anything or intended to be done in good faith under this ordinance," it noted. 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 Morarji Desai-led government. Sources said the legal amendments are needed every time the government decides to scrap any legal tender to put an end to its promissory note. Of the Rs 15.4 lakh crore worth of currency that was scrapped, about Rs 14 lakh crore has been deposited in banks or exchanged. (PTI)

Demonetisation: Prime Minister Modi's 50-day promise ends today

India&#39;s Union minister of&nbsp;Urban Development, Housing and Urban Poverty Alleviation and Information &amp; Broadcasting in the Narendra Modi administration took time out to speak about the merits of demonetisation, the concept of nationalism and his party Bharatiya Janata Party&#39;s chances in Uttar Pradesh, which is India&#39;s largest regional elections.

WION: Has demonetisation served its purpose of taking out black money from the system?

Venkaiah Naidu: &nbsp;Yes, it has done so. It is a vaccine against the scam and it has done the job.

WION: Critics say that large amount of black money is abroad and not in India and all cash is not black?

VN: This is wrong to say that most of the black money is stashed abroad. You may recall that the first decision taken was constituting a special investigation team&nbsp;to find the black money stashed abroad. Secondly, we also came out with a bill in Parliament on the funds stashed abroad. Then we took initiative in G20 and entered into an agreement on multiple avoidance tax treaty with Mauritus and Cyprus and then followed it up with Switzerland and then with the US on FETA. PM (Prime Minister Narendra Modi) has been consistent. He also gave time to people to declare their (unaccounted) money. He has been doing things systematically. The black money is now in the open and this is the biggest achievement. Every rupee is being accounted for.&nbsp;

WION: The scheme has caused public inconvenience. Could&nbsp;it have been avoided?

VN: It was not possible. It was like a cancer spread across the country. The entire system was affected. Serious action was required. In 1971, the former finance minister YB Chavan recommended demonetisation. Justice Wanchoo committee also recommend it. But the previous governments didn&rsquo;t act on it. In the 80s, benami &nbsp;(without name) transaction bill was passed but the government did not notify it. We did it. In 2012, the Supreme Court of India directed the government to form a mechanism to bring back black money. This government did it. UPA (the previous government) slept over it. The chemotherapy has been administered under our regime. People welcomed it as a game-changer. People wanted drastic action and we have done it. We have 130 crore (1.3 billion) population. We had parallel economy, drug mafia, high number of fake notes and a neighbour which promotes terror etc. All of them were using black money. We delivered a death blow and that is why there is so much hue and cry. I admit that there is inconvenience. It might continue for few more days because people are used to (having) cash (on them). Arrangements could not be made because advance information could not be given. It is a temporary pain for long term gain.

WION: When will the caps go? When do we expect the liquidity to return to normal?

VN: The prime minister has already assured that pain will be eased step by step

WION: On this issue, the opposition did not allow the (India&#39;s) parliament to function. Do you expect demonetisation to cast its shadow on the budget session as well?

VN: I hope it doesn&rsquo;t happen. Parliament is a place for debate and discussion, but that&nbsp;could not happen. The Opposition wanted a debate but they later avoided and instead disrupted the parliament. They then went to the president. The government was willing and the prime minister was ready to respond. In fact, the debate had started and Opposition had fielded Anand Sharma, Pramod Tiwari and Manmohan Singh (to debate in the parliament). Mayawati , Ram Gopal Yadav, Piyush Goel and others,&nbsp;including me, spoke (about the merits of cash scrap) but they (the opposition) changed the goal posts and asked for the prime minister (to address their concerns). And when the prime minister came on the floor, the opposition didn&rsquo;t allow the house to function. They lost a golden opportunity for a debate. It was a proper forum to highlight the issue but they missed it.

WION: There is a perception that senior leaders of BJP and Congress don&rsquo;t talk unlike the days when Vajpaye was the prime minister?

VN: Everyone has a different style. Vajpayee&rsquo;s style was different, Modi&rsquo;s style is different and so was (Jawaharlal) Nehru, Indira (Gandhi) and Rajiv&#39;s (Gandhi) style. The prime minister told the opposition that we are ready for discussion but it didn&rsquo;t happen. I always tell the opposition:&nbsp;I propose, you oppose and let the House dispose.

WION: Rahul Gandhi (the de facto opposition leader) has attacked Modi on issues of demonetisation and Sahara papers. Your response?

VN: Rahul Gandhi is behaving in most irresponsible and immature manner. My personal advice is that he should graduate himself otherwise he would be failing himself and his party in the process. The personal criticism has been out of frustration. Congress has called Modi names. They (Congress) first called him &#39;maut ka saudagar&#39; (death merchant), then Rahul Gandhi called him Hitler, Mussolini and&nbsp;Gaddafi. The former external affairs minister (Salman Khurshid) called him impotent. This has not helped them and their stature has gone down.

WION: The principal charge of the opposition is that 50-odd families are being helped through the process of demonetisation?

VN: Absurd and meaningless. They shouted slogans in the parliament (accusing us of helping&nbsp;the Adanis and Ambanis, two large business conglomerates in the country). Adani and Ambani were not born during Narendra Modi&rsquo;s regime. They were born and brought up during the Congress-led governments. Who are these 50 families and how did they prosper?&nbsp;1.86 lakh crore of the bank money which has become NPA (non-performing assets) was all given during the Congress regime by these people. All concessions to Ambani and Adani were given by them. Now in order to portray us as pro-business and anti-poor, they (the opposition) are shouting these slogans. We are different. We feel that both industry and agriculture are equally important. Each should be respected. There are black sheep in the media. Every sector has a black sheep. We are looking to take action against them. Vijay Mallya was given loans during the Congress regime. The loans were restructured during the Congress tenure.

WION: BJP in 2016 was able to makes its presence felt in the Northeast (of India) by winning Assam. What are the party&#39;s prospects in Uttar Pradesh (India&#39;s largest state)?

VN: Absolutely. BJP is becoming an all-India party. When I joined this party, people would make fun of me that I&rsquo;m joining a Brahmin-baniya, urban-north India party. Today we have lawmakers across the country. We will win Karnataka. We have done well in Kerala. Our vote share&nbsp;has gone up. In Tamil Nadu, we have chances due to the demise of Amma (Jayalalithaa; she died earlier this month). In UP, the stakes are high but we are confident of winning. We got 71 seats (of 80 seats) during the general elections in the country (in 2014).&nbsp;People have seen the performances of the other regional players in the state and are not happy. The alternative to Samajwadi Party and Bahujan Samajwadi Party -- the hitherto dominant parties in UP -- is BJP

WION: Doesn&rsquo;t it worry you that demonetisation might impact BJP adversely?

VN: That is what is being discussed by the media. But in reality, our appeal has increased at the grassroots level. This is the feedback I&rsquo;m getting from Uttar Pradesh. Look at the result of Chandigarh (a Union Territory in India). We won 20 seats. A lot of people from Uttar Pradesh stay there. We&nbsp;did well in Maharashtra, Gujarat and Rajasthan local body elections as well. We won all the elections after demonetisation.

WION: The prime minister has invested his political capital in a scheme like demonetisation. Do think it was worth the risk?

VN: Yes, it was worth taking. We have not come to rule the country. We want to develop it. He is known for taking risks. He has taken it up as a challenge. He went for a surgical strike against our neighbour, who were interfering in our domestic affairs. He is known for taking tough and bold decisions. He wants to improve the living conditions of the people.

WION: Last year, the debate on nationalism dominated conversations in universities and many other areas of our society. How do you see it in retrospect?

VN: What is wrong in discussing about nationalism?&nbsp;Nation means people and people means all communities. It means all sections of the country. It means Bharat Mata ki Jai (a slogan that hails India). It means &#39;Dalito ki jai, Christian ki&nbsp;jai, Jains ki&nbsp;jai, sabhi backward castes&nbsp;ki&nbsp;jai&#39; (Victory to the Dalits, Christians, Jains and other backward castes). It encompasses every community. We should feel proud of it. Earlier, talks on nationalism would be looked down upon. Now, people feel proud and people talk about it. There nothing wrong in it.

WION: Many scholars would say that there is a difference between ethnic and civic nationalism.

VN: Those who say it are a product of 2,000 years of foreign rule and Macaulayism. This education system has gone into our heads. The influence of socialist model has also affected us. &nbsp;People have changed, the political mandate has changed but people in certain sections who were well entrenched, there minds have not changed. They have lost the battle but still holding key positions, like in the media. The so-called progressives and the leftists have not changed with the times either.

There was a big clash in Dhulagarh, West Bengal. Hundreds of shops were looted and people were thrown out of houses but the so-called secular media is neither reporting it nor discussing it. On the other hand, Zee TV has reported it prominently but a criminal charge&nbsp;has been filed against them. People sitting in Lutyen&rsquo;s Delhi, who are apparently progressive, aren&rsquo;t talking about it. Is talking about Hindus&nbsp;a crime in this country?&nbsp;This is perverted secularism and that is why people have rejected it. Secondly, ultra-Leftist people take up issues happening at Jawaharlal Nehru University and shout slogans at Hyderabad University, but the society at large have remained peaceful. I don&rsquo;t know why the essence of Hinduism is being twisted. Hinduism is a way of life and not a religion. We don&rsquo;t want to discriminate between people on the basis of religion and race. Ever since Modi came to power, there are&nbsp;less communal clashes and focus is on development and good governance. Modi&#39;s opponents lost the 2014 general elections badly and that&#39;s the reason for the opponents are attacking Modi personally and indulging in a disinformation campaign.

WION: Lastly, did surgical strike change the nature of play between Pakistan and India?

VN: I don&rsquo;t think Pakistan would understand but a message has been sent.&nbsp;It (the surgical strikes) was not (done) for political reasons but to show Pakistan and the world that India is capable of retaliation. That has been done. It has raised the morale of the Indian armed forces and it has raised the morale of the Indian people living in India and also abroad.

(WION)

India's federal minister defends government's policy by charting the steps taken by PM Modi to counter the menace

India's Union minister of Urban Development, Housing and Urban Poverty Alleviation and Information & Broadcasting in the Narendra Modi administration took time out to speak about the merits of demonetisation, the concept of nationalism and his party Bharatiya Janata Party's chances in Uttar Pradesh, which is India's largest regional elections. WION: Has demonetisation served its purpose of taking out black money from the system? Venkaiah Naidu: Yes, it has done so. It is a vaccine against the scam and it has done the job. WION: Critics say that large amount of black money is abroad and not in India and all cash is not black? VN: This is wrong to say that most of the black money is stashed abroad. You may recall that the first decision taken was constituting a special investigation team to find the black money stashed abroad. Secondly, we also came out with a bill in Parliament on the funds stashed abroad. Then we took initiative in G20 and entered into an agreement on multiple avoidance tax treaty with Mauritus and Cyprus and then followed it up with Switzerland and then with the US on FETA. PM (Prime Minister Narendra Modi) has been consistent. He also gave time to people to declare their (unaccounted) money. He has been doing things systematically. The black money is now in the open and this is the biggest achievement. Every rupee is being accounted for. WION: The scheme has caused public inconvenience. Could it have been avoided? VN: It was not possible. It was like a cancer spread across the country. The entire system was affected. Serious action was required. In 1971, the former finance minister YB Chavan recommended demonetisation. Justice Wanchoo committee also recommend it. But the previous governments didn’t act on it. In the 80s, benami (without name) transaction bill was passed but the government did not notify it. We did it. In 2012, the Supreme Court of India directed the government to form a mechanism to bring back black money. This government did it. UPA (the previous government) slept over it. The chemotherapy has been administered under our regime. People welcomed it as a game-changer. People wanted drastic action and we have done it. We have 130 crore (1.3 billion) population. We had parallel economy, drug mafia, high number of fake notes and a neighbour which promotes terror etc. All of them were using black money. We delivered a death blow and that is why there is so much hue and cry. I admit that there is inconvenience. It might continue for few more days because people are used to (having) cash (on them). Arrangements could not be made because advance information could not be given. It is a temporary pain for long term gain. WION: When will the caps go? When do we expect the liquidity to return to normal? VN: The prime minister has already assured that pain will be eased step by step WION: On this issue, the opposition did not allow the (India's) parliament to function. Do you expect demonetisation to cast its shadow on the budget session as well? VN: I hope it doesn’t happen. Parliament is a place for debate and discussion, but that could not happen. The Opposition wanted a debate but they later avoided and instead disrupted the parliament. They then went to the president. The government was willing and the prime minister was ready to respond. In fact, the debate had started and Opposition had fielded Anand Sharma, Pramod Tiwari and Manmohan Singh (to debate in the parliament). Mayawati , Ram Gopal Yadav, Piyush Goel and others, including me, spoke (about the merits of cash scrap) but they (the opposition) changed the goal posts and asked for the prime minister (to address their concerns). And when the prime minister came on the floor, the opposition didn’t allow the house to function. They lost a golden opportunity for a debate. It was a proper forum to highlight the issue but they missed it. WION: There is a perception that senior leaders of BJP and Congress don’t talk unlike the days when Vajpaye was the prime minister? VN: Everyone has a different style. Vajpayee’s style was different, Modi’s style is different and so was (Jawaharlal) Nehru, Indira (Gandhi) and Rajiv's (Gandhi) style. The prime minister told the opposition that we are ready for discussion but it didn’t happen. I always tell the opposition: I propose, you oppose and let the House dispose. WION: Rahul Gandhi (the de facto opposition leader) has attacked Modi on issues of demonetisation and Sahara papers. Your response? VN: Rahul Gandhi is behaving in most irresponsible and immature manner. My personal advice is that he should graduate himself otherwise he would be failing himself and his party in the process. The personal criticism has been out of frustration. Congress has called Modi names. They (Congress) first called him 'maut ka saudagar' (death merchant), then Rahul Gandhi called him Hitler, Mussolini and Gaddafi. The former external affairs minister (Salman Khurshid) called him impotent. This has not helped them and their stature has gone down. WION: The principal charge of the opposition is that 50-odd families are being helped through the process of demonetisation? VN: Absurd and meaningless. They shouted slogans in the parliament (accusing us of helping the Adanis and Ambanis, two large business conglomerates in the country). Adani and Ambani were not born during Narendra Modi’s regime. They were born and brought up during the Congress-led governments. Who are these 50 families and how did they prosper? 1.86 lakh crore of the bank money which has become NPA (non-performing assets) was all given during the Congress regime by these people. All concessions to Ambani and Adani were given by them. Now in order to portray us as pro-business and anti-poor, they (the opposition) are shouting these slogans. We are different. We feel that both industry and agriculture are equally important. Each should be respected. There are black sheep in the media. Every sector has a black sheep. We are looking to take action against them. Vijay Mallya was given loans during the Congress regime. The loans were restructured during the Congress tenure. WION: BJP in 2016 was able to makes its presence felt in the Northeast (of India) by winning Assam. What are the party's prospects in Uttar Pradesh (India's largest state)? VN: Absolutely. BJP is becoming an all-India party. When I joined this party, people would make fun of me that I’m joining a Brahmin-baniya, urban-north India party. Today we have lawmakers across the country. We will win Karnataka. We have done well in Kerala. Our vote share has gone up. In Tamil Nadu, we have chances due to the demise of Amma (Jayalalithaa; she died earlier this month). In UP, the stakes are high but we are confident of winning. We got 71 seats (of 80 seats) during the general elections in the country (in 2014). People have seen the performances of the other regional players in the state and are not happy. The alternative to Samajwadi Party and Bahujan Samajwadi Party -- the hitherto dominant parties in UP -- is BJP WION: Doesn’t it worry you that demonetisation might impact BJP adversely? VN: That is what is being discussed by the media. But in reality, our appeal has increased at the grassroots level. This is the feedback I’m getting from Uttar Pradesh. Look at the result of Chandigarh (a Union Territory in India). We won 20 seats. A lot of people from Uttar Pradesh stay there. We did well in Maharashtra, Gujarat and Rajasthan local body elections as well. We won all the elections after demonetisation. WION: The prime minister has invested his political capital in a scheme like demonetisation. Do think it was worth the risk? VN: Yes, it was worth taking. We have not come to rule the country. We want to develop it. He is known for taking risks. He has taken it up as a challenge. He went for a surgical strike against our neighbour, who were interfering in our domestic affairs. He is known for taking tough and bold decisions. He wants to improve the living conditions of the people. WION: Last year, the debate on nationalism dominated conversations in universities and many other areas of our society. How do you see it in retrospect? VN: What is wrong in discussing about nationalism? Nation means people and people means all communities. It means all sections of the country. It means Bharat Mata ki Jai (a slogan that hails India). It means 'Dalito ki jai, Christian ki jai, Jains ki jai, sabhi backward castes ki jai' (Victory to the Dalits, Christians, Jains and other backward castes). It encompasses every community. We should feel proud of it. Earlier, talks on nationalism would be looked down upon. Now, people feel proud and people talk about it. There nothing wrong in it. WION: Many scholars would say that there is a difference between ethnic and civic nationalism. VN: Those who say it are a product of 2,000 years of foreign rule and Macaulayism. This education system has gone into our heads. The influence of socialist model has also affected us. People have changed, the political mandate has changed but people in certain sections who were well entrenched, there minds have not changed. They have lost the battle but still holding key positions, like in the media. The so-called progressives and the leftists have not changed with the times either. There was a big clash in Dhulagarh, West Bengal. Hundreds of shops were looted and people were thrown out of houses but the so-called secular media is neither reporting it nor discussing it. On the other hand, Zee TV has reported it prominently but a criminal charge has been filed against them. People sitting in Lutyen’s Delhi, who are apparently progressive, aren’t talking about it. Is talking about Hindus a crime in this country? This is perverted secularism and that is why people have rejected it. Secondly, ultra-Leftist people take up issues happening at Jawaharlal Nehru University and shout slogans at Hyderabad University, but the society at large have remained peaceful. I don’t know why the essence of Hinduism is being twisted. Hinduism is a way of life and not a religion. We don’t want to discriminate between people on the basis of religion and race. Ever since Modi came to power, there are less communal clashes and focus is on development and good governance. Modi's opponents lost the 2014 general elections badly and that's the reason for the opponents are attacking Modi personally and indulging in a disinformation campaign. WION: Lastly, did surgical strike change the nature of play between Pakistan and India? VN: I don’t think Pakistan would understand but a message has been sent. It (the surgical strikes) was not (done) for political reasons but to show Pakistan and the world that India is capable of retaliation. That has been done. It has raised the morale of the Indian armed forces and it has raised the morale of the Indian people living in India and also abroad. (WION)

Demonetisation is a vaccine against black money: Minister Venkaiah Naidu defends move that has discomfited people

To encourage digital transactions and make them more convenient, Indian Prime Minister Narendra Modi&nbsp;launched an Aadhar-based mobile payment application.

Under this, payments can be made by just a thumb impression once the bank account is linked with Aadhar gateway.

The new app, named BHIM (Bharat Interface for Money) after the main architect of Indian constitution&nbsp;Bhim Rao Ambedkar, will help seam the illiterate people to get into the cashless world effortlessly.

&quot;One only needs a thumb. There was a time when an illiterate was called &#39;angutha chhaap&#39;. But your thumb is your bank now,&quot;&nbsp;Modi said.

Speaking at DigiDhan Mela in India&#39;s capital New Delhi --&nbsp;an event organised to celebrate the success of digital currency push -- Modi used humour to lash out at his political opponents for criticising demonetisation saying the drive was aimed at catching the &quot;mouse&quot; that eats away the nation&#39;s wealth.

BHIM can now be downloaded by Android users, and will be up in the iOS system too, NDTV reported.

Though he did not name anyone, his comments were directed towards opposition parties, which have been criticising the demonetisation move for yielding minuscule results in unearthing black money.

(WION with inputs from PTI)

BHIM can now be downloaded by Android users and will come up on iOS soon

To encourage digital transactions and make them more convenient, Indian Prime Minister Narendra Modi launched an Aadhar-based mobile payment application. Under this, payments can be made by just a thumb impression once the bank account is linked with Aadhar gateway. The new app, named BHIM (Bharat Interface for Money) after the main architect of Indian constitution Bhim Rao Ambedkar, will help seam the illiterate people to get into the cashless world effortlessly. "One only needs a thumb. There was a time when an illiterate was called 'angutha chhaap'. But your thumb is your bank now," Modi said. Speaking at DigiDhan Mela in India's capital New Delhi -- an event organised to celebrate the success of digital currency push -- Modi used humour to lash out at his political opponents for criticising demonetisation saying the drive was aimed at catching the "mouse" that eats away the nation's wealth. BHIM can now be downloaded by Android users, and will be up in the iOS system too, NDTV reported. Though he did not name anyone, his comments were directed towards opposition parties, which have been criticising the demonetisation move for yielding minuscule results in unearthing black money. (WION with inputs from PTI)

Demonetisation: Indian govt unveils thumb-impression digital payment app for poor

Prime Minister Narendra Modi is likely to address the nation on New Year eve.

Sources said the Prime Minister, who has come under sharp criticism post the November 8 demonetisation drive, is likely to put forth his views in this regard before the nation.

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Prime Minister Modi had earlier urged the nation to give him 50 days post the demonetisation decision to get things back on track.

After demonetisation, the government has taken a number of steps to ensure that no hardship is faced by tourists and the industry is not affected.

The Archaeological Survey of India (ASI) smoothly transitioned to cashless mode of payment by simplifying&nbsp;process of e - tickets.

The government`s efforts have paid dividend as there has been a notable growth in the comparative figures of Foreign Tourists Arrival (FTA), Foreign Exchange Earnings (FEEs) and online sale of e - tickets after demonetisation.

In a television address to the nation on November 8, Prime Minister Modi said, &quot;The magnitude of cash in circulation is directly linked to the level of corruption.&quot;

Inflation becomes worse through the deployment of cash earned in corrupt ways.

&quot;He said to break the grip of corruption and black money, the government has decided that from midnight Rs. 500 and Rs. 1,000 currency notes will cease to be legal tender.&quot;

The Rs. 500 and Rs. 1,000 notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper,&quot; he added.

Till date, the government has made several changes to the norms.

After reports on crop sowing taking a hit due to no availability of cash, the government allowed farmers to buy seeds with old Rs. 500 currency notes.

A November 17 announcement allowed the farmers to withdraw up to Rs. 25,000 per week from their KYC-compliant account.

Following reports on abuse of Jan Dhan accounts, the Reserve Bank of India (RBI) capped the withdrawal limit to Rs. 10,000 per month.

On November 17, the government made more modifications to the existing rules.

Families could now withdraw up to Rs. 2.5 lakh for weddings.

The currency exchange limit was reduced from Rs. 4,500 to Rs. 2,000 per person.

The traders in agricultural mandis were permitted to draw up to Rs. 50,000 in cash per week to pay for sundry expenses like wages.

Also, government employees up to Group C could draw Rs. 10,000 salary in advance in cash.

The demonetisation decision has also taken a toll on the common man, with reports of some dying while standing in queues to collect money.

In between all this, Prime Minister Modi has continued to address the nation at various public gatherings and his `Mann ki Baat` radio programme.

Making an emotional appeal at an event in Goa on November 13, Prime Minister Modi asked the &quot;honest&quot; people of the country to bear the hardships for another 50 days.

Exactly two weeks later on November 27, the Prime Minister urged the farmers and small traders to go cashless at his monthly `Mann ki Baat` address.

&quot;The common man will be trouble free if they are made aware of the digital financial transaction options,&quot; he said asking the youth to lead the change.

The opposition cornered the government in the Winter Session of Parliament over the inconvenience faced by the nation post demonetisation.

(ANI)&nbsp;

He will probably talk about demonetisation

Prime Minister Narendra Modi is likely to address the nation on New Year eve. Sources said the Prime Minister, who has come under sharp criticism post the November 8 demonetisation drive, is likely to put forth his views in this regard before the nation. On November 8, Modi had said, 'The magnitude of cash in circulation is directly linked to the level of corruption' × Prime Minister Modi had earlier urged the nation to give him 50 days post the demonetisation decision to get things back on track. After demonetisation, the government has taken a number of steps to ensure that no hardship is faced by tourists and the industry is not affected. The Archaeological Survey of India (ASI) smoothly transitioned to cashless mode of payment by simplifying process of e - tickets. The government`s efforts have paid dividend as there has been a notable growth in the comparative figures of Foreign Tourists Arrival (FTA), Foreign Exchange Earnings (FEEs) and online sale of e - tickets after demonetisation. In a television address to the nation on November 8, Prime Minister Modi said, "The magnitude of cash in circulation is directly linked to the level of corruption." Inflation becomes worse through the deployment of cash earned in corrupt ways. "He said to break the grip of corruption and black money, the government has decided that from midnight Rs. 500 and Rs. 1,000 currency notes will cease to be legal tender." The Rs. 500 and Rs. 1,000 notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper," he added. Till date, the government has made several changes to the norms. After reports on crop sowing taking a hit due to no availability of cash, the government allowed farmers to buy seeds with old Rs. 500 currency notes. A November 17 announcement allowed the farmers to withdraw up to Rs. 25,000 per week from their KYC-compliant account. Following reports on abuse of Jan Dhan accounts, the Reserve Bank of India (RBI) capped the withdrawal limit to Rs. 10,000 per month. On November 17, the government made more modifications to the existing rules. Families could now withdraw up to Rs. 2.5 lakh for weddings. The currency exchange limit was reduced from Rs. 4,500 to Rs. 2,000 per person. The traders in agricultural mandis were permitted to draw up to Rs. 50,000 in cash per week to pay for sundry expenses like wages. Also, government employees up to Group C could draw Rs. 10,000 salary in advance in cash. The demonetisation decision has also taken a toll on the common man, with reports of some dying while standing in queues to collect money. In between all this, Prime Minister Modi has continued to address the nation at various public gatherings and his `Mann ki Baat` radio programme. Making an emotional appeal at an event in Goa on November 13, Prime Minister Modi asked the "honest" people of the country to bear the hardships for another 50 days. Exactly two weeks later on November 27, the Prime Minister urged the farmers and small traders to go cashless at his monthly `Mann ki Baat` address. "The common man will be trouble free if they are made aware of the digital financial transaction options," he said asking the youth to lead the change. The opposition cornered the government in the Winter Session of Parliament over the inconvenience faced by the nation post demonetisation. (ANI)

Indian PM Modi likely to address country on New Year's eve: Sources

India&#39;s Prime Minister Narendra Modi said the decision to scrap high-value bank notes will give the economy a further boost, and would provide long-term benefits, including forcing the country&#39;s vast shadow economy into the open.

The defence of his radical move to abolish 500 and 1,000 rupee notes, in an interview to India Today magazine released on Thursday, comes after the decision has disrupted the daily lives of hundreds of millions of Indians as banks have struggled to swiftly expand the circulation of new bills.

India&#39;s gross domestic product grew an annual 7.3 per cent growth between July and September, making it the world&#39;s fastest growing large economy, but many economists say expansion will slow substantially in the current quarter.

&quot;We took the demonetisation decision not for some short-term windfall gain, but for a long term structural transformation,&quot; Modi was quoted as saying by India Today.

Modi added the move would bring cash from the shadow economy into the mainstream. The Prime Minister had said the demonetisation action was needed to fight corruption and fraud and cut off financing for attacks by militants who target India.

&quot;The multiplier effect of introduction of money which was, till now, uselessly hoarded and stocked away as cash into the active economic system will give the economy a further boost,&quot; he said according to India Today.

Economists and some businesses say demonetisation could ultimately help broaden the formal economy and improve tax compliance.

Both 500 and 1,000 rupee notes will cease to be legal tenders after December&nbsp;31, and Modi has scheduled a speech to the nation on that day.

(Reuters)

Narendra Modi defended his plan to scrap old cash, saying it will bring cash from the shadow economy into the mainstream

India's Prime Minister Narendra Modi said the decision to scrap high-value bank notes will give the economy a further boost, and would provide long-term benefits, including forcing the country's vast shadow economy into the open. The defence of his radical move to abolish 500 and 1,000 rupee notes, in an interview to India Today magazine released on Thursday, comes after the decision has disrupted the daily lives of hundreds of millions of Indians as banks have struggled to swiftly expand the circulation of new bills. India's gross domestic product grew an annual 7.3 per cent growth between July and September, making it the world's fastest growing large economy, but many economists say expansion will slow substantially in the current quarter. "We took the demonetisation decision not for some short-term windfall gain, but for a long term structural transformation," Modi was quoted as saying by India Today. Modi added the move would bring cash from the shadow economy into the mainstream. The Prime Minister had said the demonetisation action was needed to fight corruption and fraud and cut off financing for attacks by militants who target India. "The multiplier effect of introduction of money which was, till now, uselessly hoarded and stocked away as cash into the active economic system will give the economy a further boost," he said according to India Today. Economists and some businesses say demonetisation could ultimately help broaden the formal economy and improve tax compliance. Both 500 and 1,000 rupee notes will cease to be legal tenders after December 31, and Modi has scheduled a speech to the nation on that day. (Reuters)

Demonetisation will spur Indian economy in long run: India's PM Modi

The Indian government has made holding of more than 10 junked Rs 500/1000 notes a penal offence punishable with a minimum Rs 10,000 fine, but the harsher four-year jail term has been dropped.

The Specified Bank Notes Cessation of Liabilities Ordinance, approved yesterday by the Cabinet headed by Prime Minister Narendra Modi, allows individuals to hold no more than 10 notes of the old currency. It allows 25 such currencies to be held by research scholars.

Top sources said the ordinance, which will be sent to the President for his assent shortly, will come into effect from December 31.

It provides for making holding of old 1,000 and 500 rupee notes after March 31 a criminal offence that will attract a fine of Rs 10,000 or five times the cash held, whichever is higher.

Furnishing wrong information while depositing the old currency between January 1 and March 31 -- a window provided only for exigencies -- will attract a fine of Rs 5,000 or five times the amount, whichever is higher.

The ordinance also provides for amending the Reserve Bank of India (RBI) Act to provide legislative support for extinguishing the demonetised banknotes that are not returned.

The 50-day window for depositing the old notes in bank accounts and post offices expires tomorrow.

While the high-denomination currency ceased to be a legal tender from midnight of November 8, 2016, a mere notification was not thought to be enough to end the central bank&#39;s liability and avoid future litigations.

Currency notes carry RBI&#39;s promise to pay the bearer the amount of the value of the note, a pledge that can be nullified only by legislation after giving due opportunity to everyone to return old notes.

Sources said the proposal for a four-year jail term for anyone possessing large number of demonetised currency after March 31, 2017 was not approved.

The ordinance, which will have to be converted into proper legislation by passing of a law in Parliament within six months, makes possession, transfer or receiving an amount of over Rs 10,000 in the now-demonetised 500 and 1,000-rupee notes a punishable offence.

(PTI)

While the four-year jail term has been dropped. the minimum Rs 10,000 fine for holding more than 10 old notes remains a penal offence

The Indian government has made holding of more than 10 junked Rs 500/1000 notes a penal offence punishable with a minimum Rs 10,000 fine, but the harsher four-year jail term has been dropped. The Specified Bank Notes Cessation of Liabilities Ordinance, approved yesterday by the Cabinet headed by Prime Minister Narendra Modi, allows individuals to hold no more than 10 notes of the old currency. It allows 25 such currencies to be held by research scholars. Top sources said the ordinance, which will be sent to the President for his assent shortly, will come into effect from December 31. It provides for making holding of old 1,000 and 500 rupee notes after March 31 a criminal offence that will attract a fine of Rs 10,000 or five times the cash held, whichever is higher. Furnishing wrong information while depositing the old currency between January 1 and March 31 -- a window provided only for exigencies -- will attract a fine of Rs 5,000 or five times the amount, whichever is higher. The ordinance also provides for amending the Reserve Bank of India (RBI) Act to provide legislative support for extinguishing the demonetised banknotes that are not returned. The 50-day window for depositing the old notes in bank accounts and post offices expires tomorrow. While the high-denomination currency ceased to be a legal tender from midnight of November 8, 2016, a mere notification was not thought to be enough to end the central bank's liability and avoid future litigations. Currency notes carry RBI's promise to pay the bearer the amount of the value of the note, a pledge that can be nullified only by legislation after giving due opportunity to everyone to return old notes. Sources said the proposal for a four-year jail term for anyone possessing large number of demonetised currency after March 31, 2017 was not approved. The ordinance, which will have to be converted into proper legislation by passing of a law in Parliament within six months, makes possession, transfer or receiving an amount of over Rs 10,000 in the now-demonetised 500 and 1,000-rupee notes a punishable offence. (PTI)

Demonetisation: Government scraps jail term for old cash holders

Why were Rs 1000 and Rs 500 notes demonetised by the government?

Fifty days after the government announced that these notes would cease to be legal tender, Reserve Bank of India feels that the reasons behind the sudden announcement cannot be made public.

The monetary policy regulator also refused to give any details about the time it will take to replenish the currency notes.

&quot;The query is in the nature of seeking future date of an event which is not defined as information as per Section 2(f) of the RTI Act,&quot; RBI said in response to an RTI query.

The Bankers&#39; Bank refused to disclose reasons behind the demonetisation of about Rs 20 lakh crore of currency in the country citing Section 8(1)(a) of the Right to Information Act.

The section states, &quot;Information, disclosure of which would prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the State, relation with foreign State or lead to incitement of an offence.&quot;

Denying the information sought in the RTI application, the RBI did not give any reasons as to how exemption would apply in the given case as the decision was already taken and there was no way that disclosure of information would have fit in any of the reasons cited in section 8(1)(a) of the RTI Act.

&quot;The clause of public interest would apply where exemption clause applies on the information sought by an applicant. In the present case, the information sought does not attract any exemption clause,&quot; former Central Information Commissioner Shailesh Gandhi told PTI.

He said law is very clear that when a public authority rejects to disclose an information it must give clear reasons as to how the exemption clause would apply in the given case.

Recently, it had refused to allow access to minutes of meetings held to decide on the issue of demonetisation of Rs 1000 and Rs 500 notes announced by Prime Minister Narendra Modi on November 8.

Responding to an RTI application filed by activist Venkatesh Nayak, the Banker&#39;s Bank refused to disclose the minutes of the crucial meetings of Central Board of Directors on the issue of demonetisation citing section 8(1)(a) of the transparency law.

Nayak said he will appeal against the decision, adding, while confidentiality prior to the making of the demonetisation decision is understandable, continued secrecy after the implementation of the decision is difficult to understand when crores of Indians are facing difficulties due to the shortage of cash in the economy.

He said the refusal to disclose the minutes of the board meeting where the decision was taken is perplexing to say the very least.

Former Information Commissioner Shailesh Gandhi also underlined that RBI has created an in-house &quot;disclosure policy&quot; which is against the letter and spirit of the RTI Act.

Gandhi has also filed a complaint before Central Information Commission against RBI for adopting the policy.

(PTI)

The Reserve Bank of India also refused to give any details about the time it will take to replenish the currency notes

Why were Rs 1000 and Rs 500 notes demonetised by the government? Fifty days after the government announced that these notes would cease to be legal tender, Reserve Bank of India feels that the reasons behind the sudden announcement cannot be made public. The monetary policy regulator also refused to give any details about the time it will take to replenish the currency notes. "The query is in the nature of seeking future date of an event which is not defined as information as per Section 2(f) of the RTI Act," RBI said in response to an RTI query. The Bankers' Bank refused to disclose reasons behind the demonetisation of about Rs 20 lakh crore of currency in the country citing Section 8(1)(a) of the Right to Information Act. The section states, "Information, disclosure of which would prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the State, relation with foreign State or lead to incitement of an offence." Denying the information sought in the RTI application, the RBI did not give any reasons as to how exemption would apply in the given case as the decision was already taken and there was no way that disclosure of information would have fit in any of the reasons cited in section 8(1)(a) of the RTI Act. "The clause of public interest would apply where exemption clause applies on the information sought by an applicant. In the present case, the information sought does not attract any exemption clause," former Central Information Commissioner Shailesh Gandhi told PTI. He said law is very clear that when a public authority rejects to disclose an information it must give clear reasons as to how the exemption clause would apply in the given case. Recently, it had refused to allow access to minutes of meetings held to decide on the issue of demonetisation of Rs 1000 and Rs 500 notes announced by Prime Minister Narendra Modi on November 8. Responding to an RTI application filed by activist Venkatesh Nayak, the Banker's Bank refused to disclose the minutes of the crucial meetings of Central Board of Directors on the issue of demonetisation citing section 8(1)(a) of the transparency law. Nayak said he will appeal against the decision, adding, while confidentiality prior to the making of the demonetisation decision is understandable, continued secrecy after the implementation of the decision is difficult to understand when crores of Indians are facing difficulties due to the shortage of cash in the economy. He said the refusal to disclose the minutes of the board meeting where the decision was taken is perplexing to say the very least. Former Information Commissioner Shailesh Gandhi also underlined that RBI has created an in-house "disclosure policy" which is against the letter and spirit of the RTI Act. Gandhi has also filed a complaint before Central Information Commission against RBI for adopting the policy. (PTI)

Demonetisation: India's central bank doesn't divulge reasons for cash scrap

The government has approved an order imposing penalties, including a jail term, on people who continue to hold on to notes.&nbsp;

PTI reported that the cabinet had approved the order Wednesday.&nbsp;

Anybody with more than 10 old notes will be penalised.

Prime Minister Narendra Modi had announced the demonetisation of 500- and 1,000-rupee notes on the evening of November 8, saying the currency would cease to be legal tender from midnight that day. &nbsp;

PTI reported that the penalty for possessing old notes would include financial&nbsp;fines and a jail term of up to four years in certain cases. &nbsp;

Media reports had earlier said the fine would be Rs 50,000 -- or five times the value of 10 old 1,000-rupee notes. &nbsp;

PTI reported that while sources in the government had said the ordinance had been passed, they had not specified whether the order would go into effect on December 30 this year or March 31 next year. Old notes can be deposited along with a declaration form at specified branches of the Reserve Bank of India till March 31.&nbsp;

December 30 is the last day people are allowed to deposit old notes in their bank accounts.&nbsp;

It is also the day Prime Minister Modi&#39;s self-imposed 50-day deadline -- he had asked the public to brave the fallout of demonetisation for 50 days -- comes to an end.&nbsp;

PTI reported that the cabinet also approved an ordinance amending the RBI Act to cancel the government&#39;s and the central bank&#39;s liability to holders of the old notes&nbsp;in order to prevent future litigation.

(WION with inputs from PTI)

The penalty for possessing more than 10 old notes may include financial fines and a jail term of up to 4 years in certain cases

The government has approved an order imposing penalties, including a jail term, on people who continue to hold on to notes. PTI reported that the cabinet had approved the order Wednesday. Anybody with more than 10 old notes will be penalised. Prime Minister Narendra Modi had announced the demonetisation of 500- and 1,000-rupee notes on the evening of November 8, saying the currency would cease to be legal tender from midnight that day. PTI reported that the penalty for possessing old notes would include financial fines and a jail term of up to four years in certain cases. Media reports had earlier said the fine would be Rs 50,000 -- or five times the value of 10 old 1,000-rupee notes. PTI reported that while sources in the government had said the ordinance had been passed, they had not specified whether the order would go into effect on December 30 this year or March 31 next year. Old notes can be deposited along with a declaration form at specified branches of the Reserve Bank of India till March 31. December 30 is the last day people are allowed to deposit old notes in their bank accounts. It is also the day Prime Minister Modi's self-imposed 50-day deadline -- he had asked the public to brave the fallout of demonetisation for 50 days -- comes to an end. PTI reported that the cabinet also approved an ordinance amending the RBI Act to cancel the government's and the central bank's liability to holders of the old notes in order to prevent future litigation. (WION with inputs from PTI)

Demonetisation: Indian government approves order imposing fine, jail term for holding on to old currency notes

Lashing out yet again at the demonetisation drive,Congress vice-president Rahul Gandhi on Wednesday said that Prime Minister Narendra Modi has sacrificed the common man in &#39;yagna&#39; against black money.

&quot;Prime Minister Narendra Modi said he is performing a yagna against black money and corruption. As animals are slaughtered in yagnas, similarly Prime Minister Modi has sacrificed the common man in yagna against black money,&quot; said Gandhi, while speaking at the 132nd foundation day of the Indian National Congress.

He went on to add that that demonetisation &#39;yagna&#39; is aimed at benefitting the rich

The Congress vice-president&#39;s comments came a day after the anti-demonetisation meeting, which was attended by all opposition parties except the Left, Janata Dal (United) and Nationalist Congress Party (NCP).

Taking on the opposition for raising objections to the demonetisation drive, Prime Minister Narendra Modi yesterday described the move as a &#39;safayi abhiyan&#39; aimed to curb black money and corruption.

At a rally in Congress-ruled Uttarakhand, the Prime Minister said that the country has suffered in the past not just because of black money but also due to leadership with &#39;malicious heart&#39;.

Gandhi also talked about the grand old party&rsquo;s achievements and commitment towards the nation.

&quot;What is the Congress? It means listening to you, understanding others. It made us understand the meaning of freedom,&quot; he said.

&nbsp;

(WION with inputs from ANI)

He also said demonetisation is aimed at benefitting the rich

Lashing out yet again at the demonetisation drive,Congress vice-president Rahul Gandhi on Wednesday said that Prime Minister Narendra Modi has sacrificed the common man in 'yagna' against black money. "Prime Minister Narendra Modi said he is performing a yagna against black money and corruption. As animals are slaughtered in yagnas, similarly Prime Minister Modi has sacrificed the common man in yagna against black money," said Gandhi, while speaking at the 132nd foundation day of the Indian National Congress. He went on to add that that demonetisation 'yagna' is aimed at benefitting the rich The Congress vice-president's comments came a day after the anti-demonetisation meeting, which was attended by all opposition parties except the Left, Janata Dal (United) and Nationalist Congress Party (NCP). Taking on the opposition for raising objections to the demonetisation drive, Prime Minister Narendra Modi yesterday described the move as a 'safayi abhiyan' aimed to curb black money and corruption. At a rally in Congress-ruled Uttarakhand, the Prime Minister said that the country has suffered in the past not just because of black money but also due to leadership with 'malicious heart'. Gandhi also talked about the grand old party’s achievements and commitment towards the nation. "What is the Congress? It means listening to you, understanding others. It made us understand the meaning of freedom," he said. (WION with inputs from ANI)

Rahul Gandhi: Common man sacrificed in 'yagna' against black money

Workers employed by a builder on Tuesday complained to police that their services were terminated after they refused to accept their salary in demonetised currency notes.

&quot;On complaint of the workers, the builder has been called for questioning. If any illegality is found, action will be taken against him. Also, efforts will be made so that workers get salary through cheques,&quot; DSP Arvind Yadav said.

They also held a protest outside the builder&#39;s office.

A worker, Shesh Kumar, alleged, &quot;The salary for October was paid in old currency notes which was accepted by the workers. Now, the builder is pressurising us to accept November&#39;s salary and that for December in advance in old currency notes.&quot;

&quot;When we refused, the builder informed us that our services have been terminated,&quot; the worker alleged.

(This report first appeared on DNA)

On complaint of the workers, the builder has been called for questioning, DSP Arvind Yadav said.

Workers employed by a builder on Tuesday complained to police that their services were terminated after they refused to accept their salary in demonetised currency notes. "On complaint of the workers, the builder has been called for questioning. If any illegality is found, action will be taken against him. Also, efforts will be made so that workers get salary through cheques," DSP Arvind Yadav said. They also held a protest outside the builder's office. A worker, Shesh Kumar, alleged, "The salary for October was paid in old currency notes which was accepted by the workers. Now, the builder is pressurising us to accept November's salary and that for December in advance in old currency notes." "When we refused, the builder informed us that our services have been terminated," the worker alleged. (This report first appeared on DNA)

Demonetisation: Workers laid off on refusing to accept salary in old notes

By&nbsp;<a href="http://www.dnaindia.com/authors/praveena-sharma" target="_blank" title="Praveena Sharma">Pr</a>aveena Sharma

As Indian Prime Minister Narendra Modi gets ready to address the nation on December 30, a reliable source told DNA that the government was seriously considering relaxing current restrictions on withdrawals from ATMs and banks from Rs 2,500 a day and Rs 24,000 a week respectively to Rs 4,000 per day and Rs 40,000 per week respectively.

Modi had sought 50 days to normalise the liquidity situation after he made Rs 500 and Rs 1,000 notes illegal from midnight of November 8.

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<h5>All of this is expected to be announced by the PM on December 30 evening. He is planning an address (to the nation) at 8 pm in which he is going to connect what he said on November 8 and ask countrymen to be patient</h5>
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A source in the government, who spoke on condition of anonymity, said since the shortage of cash continued to persist, the restriction on withdrawal may not be completely removed but would be eased.

&quot;Today, for instance, the restriction is Rs 24,000 per week and Rs 2,500 per day; they might increase that to Rs 4,000 per day and Rs 40,000 per week, but nevertheless, will continue with the restrictions. All of this is expected to be announced by the PM on December 30 evening. He is planning an address (to the nation) at 8 pm in which he is going to connect what he said on November 8 and ask countrymen to be patient,&quot; he said.

Also, the Indian government is contemplating an ordinance to restrict holding of banned notes and penalising their possession of beyond a certain limit after December 30. However, the ordinance is likely to be issued only after the liquidity situation improves. &quot;That (ordinance) is being discussed very seriously, but there are two specific challenges. One is that in terms of the RBI (Reserve Bank of India) notification issued on November 8 that even after January 1 people have time till March 31 to deposit with RBI. Technically the ordinance can&#39;t be issued with effect from January 1 because if they say that holding the currency is illegal after January 1, then those who would have planned to deposit it with the RBI (after December 30) will not have that window (given by the government earlier),&quot; said a source.

The second issue was shortage of liquidity in the economy; &quot;even today, the country is largely running on Rs 2,000 note. Other denomination notes have not yet been made available and the process of contracting for new currency notes has just started. The problem is not going to vanish from first week of January,&quot; he said.

According to the source, tenders for printing of new currency notes of Rs 500 and Rs 2,000 were issued from December 22. &quot;The government can&#39;t just call anybody and ask them to do it. They have to buy the paper, the ink, open tender, and then do it,&quot; he said.

Also, the government does not want to take any unpopular decision. &quot;With the after-effects of demonetisation still lingering, it does not want to become more unpopular, saying on one hand that holding old money is illegal and you can be penalised, while on the other it still cannot meet the currency demand,&quot; he said.

(This article first appeared in DNA)

At the moment, people are allowed to withdraw a maximum of Rs 2,500 a day from ATMs, Rs 24,000 a week from banks

By Praveena Sharma As Indian Prime Minister Narendra Modi gets ready to address the nation on December 30, a reliable source told DNA that the government was seriously considering relaxing current restrictions on withdrawals from ATMs and banks from Rs 2,500 a day and Rs 24,000 a week respectively to Rs 4,000 per day and Rs 40,000 per week respectively. Modi had sought 50 days to normalise the liquidity situation after he made Rs 500 and Rs 1,000 notes illegal from midnight of November 8. All of this is expected to be announced by the PM on December 30 evening. He is planning an address (to the nation) at 8 pm in which he is going to connect what he said on November 8 and ask countrymen to be patient × A source in the government, who spoke on condition of anonymity, said since the shortage of cash continued to persist, the restriction on withdrawal may not be completely removed but would be eased. "Today, for instance, the restriction is Rs 24,000 per week and Rs 2,500 per day; they might increase that to Rs 4,000 per day and Rs 40,000 per week, but nevertheless, will continue with the restrictions. All of this is expected to be announced by the PM on December 30 evening. He is planning an address (to the nation) at 8 pm in which he is going to connect what he said on November 8 and ask countrymen to be patient," he said. Also, the Indian government is contemplating an ordinance to restrict holding of banned notes and penalising their possession of beyond a certain limit after December 30. However, the ordinance is likely to be issued only after the liquidity situation improves. "That (ordinance) is being discussed very seriously, but there are two specific challenges. One is that in terms of the RBI (Reserve Bank of India) notification issued on November 8 that even after January 1 people have time till March 31 to deposit with RBI. Technically the ordinance can't be issued with effect from January 1 because if they say that holding the currency is illegal after January 1, then those who would have planned to deposit it with the RBI (after December 30) will not have that window (given by the government earlier)," said a source. The second issue was shortage of liquidity in the economy; "even today, the country is largely running on Rs 2,000 note. Other denomination notes have not yet been made available and the process of contracting for new currency notes has just started. The problem is not going to vanish from first week of January," he said. According to the source, tenders for printing of new currency notes of Rs 500 and Rs 2,000 were issued from December 22. "The government can't just call anybody and ask them to do it. They have to buy the paper, the ink, open tender, and then do it," he said. Also, the government does not want to take any unpopular decision. "With the after-effects of demonetisation still lingering, it does not want to become more unpopular, saying on one hand that holding old money is illegal and you can be penalised, while on the other it still cannot meet the currency demand," he said. (This article first appeared in DNA)

Demonetisation: Withdrawal caps may be upped to Rs 4,000 a day, 40,000 a week

Preparations for a Buddhist ceremony, the 34th Kalachakra (Wheel of Time) ritual, have slacked due to a cash crunch in the holy city of Gaya in India&#39;s eastern Bihar province following the federal government&#39;s shock demonetisation move.

Prime Minister Narendra Modi`s sudden move to outlaw 86 per cent of cash in circulation on November 8 has caused huge disruptions to daily life, as well as affecting donations offered at various holy places.

The Kalachakra ritual, an esoteric but very important Buddhist rite for activating dormant enlightenment, is scheduled to take place from January 3-14. To mitigate the plight of cash strapped believers, the administration said it planned to take the help of banks.

&quot;As the prayers have not yet begun, so it is difficult to say. But whatever problem is faced due to the cash crunch, we can handle it. We have contacted the banks and I think we will be able to find a reasonable solution to it,&quot; said Gaya District Magistrate, Kumar Ravi on Tuesday.

Shopkeepers, however, have been disappointed by the forecast of a slump in business.

&quot;I think not even 20 per cent of the crowd which we were expecting will come for the Kalachakra prayer,&quot; said leader of Foothpath Shopkeepers Association, Noushad Alam.

Tibetan spiritual leader, the Dalai Lama, will begin the ceremony at the Mahabodhi temple followed by prayers.

With the cash economy estimated to account for a fifth of India&#39;s $2 trillion gross domestic product, Modi&#39;s demonetisation decision has disrupted the daily lives of hundreds of millions of Indians.

The move to demonetise the large bills was originally said to be&nbsp;designed to bring billions of dollars&#39;&nbsp;worth of cash in unaccounted wealth into the mainstream economy, as well as dent the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations.&nbsp;

Many now say demonetisation is an&nbsp;attempt to digitize India and help make it a<a href="http://economictimes.indiatimes.com/industry/banking/finance/banking/demonetisation-modi-govt-is-betting-its-future-on-digital-india-will-it-bear-good-results/articleshow/55969340.cms"> cashless economy.</a>

(Reuters)

The 34th Kalachakra ritual in the holy city of Gaya in India's eastern Bihar province has been impacted by the government's shocking move

Preparations for a Buddhist ceremony, the 34th Kalachakra (Wheel of Time) ritual, have slacked due to a cash crunch in the holy city of Gaya in India's eastern Bihar province following the federal government's shock demonetisation move. Prime Minister Narendra Modi`s sudden move to outlaw 86 per cent of cash in circulation on November 8 has caused huge disruptions to daily life, as well as affecting donations offered at various holy places. The Kalachakra ritual, an esoteric but very important Buddhist rite for activating dormant enlightenment, is scheduled to take place from January 3-14. To mitigate the plight of cash strapped believers, the administration said it planned to take the help of banks. "As the prayers have not yet begun, so it is difficult to say. But whatever problem is faced due to the cash crunch, we can handle it. We have contacted the banks and I think we will be able to find a reasonable solution to it," said Gaya District Magistrate, Kumar Ravi on Tuesday. Shopkeepers, however, have been disappointed by the forecast of a slump in business. "I think not even 20 per cent of the crowd which we were expecting will come for the Kalachakra prayer," said leader of Foothpath Shopkeepers Association, Noushad Alam. Tibetan spiritual leader, the Dalai Lama, will begin the ceremony at the Mahabodhi temple followed by prayers. With the cash economy estimated to account for a fifth of India's $2 trillion gross domestic product, Modi's demonetisation decision has disrupted the daily lives of hundreds of millions of Indians. The move to demonetise the large bills was originally said to be designed to bring billions of dollars' worth of cash in unaccounted wealth into the mainstream economy, as well as dent the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations. Many now say demonetisation is an attempt to digitize India and help make it a cashless economy. (Reuters)

Demonetisation: Cash crunch disrupts Buddhist ceremony

In a fresh crackdown on black money, the government is mulling over an ordinance that will seek to impose fines on people in possession of banned Rs 500 and Rs 1,000 notes beyond December 30.

The maximum number of banned notes one can possess regardless of denomination will be 10.

The transfer of over Rs 10,000 in old notes may even result in a punishment and a minimum fine of Rs 50,000 or five times the amount in question, whichever is higher.

Violations of the rule will carry a criminal liability and municipal magistrates will hear cases on violations, said the NDTV report.

However, there was no official word on the act which is likely to come up before the Cabinet on Wednesday.

The ordinance may extinguish the liability of the government and RBI towards the promise to pay the bearer of these notes their value because of a statutory requirement.

In 1978, a similar ordinance was issued to end the government&#39;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 ordinance also includes recommendations of the central board of directors of the RBI.

The period to deposit old notes in banks ends on December 30, after which the banned notes have to be directly deposited in the RBI.

The RBI had earlier this month issued an order stating that an amount exceeding Rs 5000 in demonetised notes cannot be deposited in the banks more than once till December 30.

But later, the order was withdrawn.

To flush out black money from the country, Prime Minister Narendra Modi had banned 500 and 1,000 rupee notes on November 8.

(WION)

Govt is mulling over an ordinance that will seek to impose fines on people in possession of banned notes beyond December 30

In a fresh crackdown on black money, the government is mulling over an ordinance that will seek to impose fines on people in possession of banned Rs 500 and Rs 1,000 notes beyond December 30. The maximum number of banned notes one can possess regardless of denomination will be 10. The transfer of over Rs 10,000 in old notes may even result in a punishment and a minimum fine of Rs 50,000 or five times the amount in question, whichever is higher. Violations of the rule will carry a criminal liability and municipal magistrates will hear cases on violations, said the NDTV report. However, there was no official word on the act which is likely to come up before the Cabinet on Wednesday. The ordinance may extinguish the liability of the government and RBI towards the promise to pay the bearer of these notes their value because of a statutory requirement. 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 ordinance also includes recommendations of the central board of directors of the RBI. The period to deposit old notes in banks ends on December 30, after which the banned notes have to be directly deposited in the RBI. The RBI had earlier this month issued an order stating that an amount exceeding Rs 5000 in demonetised notes cannot be deposited in the banks more than once till December 30. But later, the order was withdrawn. To flush out black money from the country, Prime Minister Narendra Modi had banned 500 and 1,000 rupee notes on November 8. (WION)

Govt mulls over imposing heavy fine on possession of banned notes above Rs 10,000

By Yoshita Rao

Disparity among Indian internet users came to light when on the one hand mobile data plans become more and more affordable while on the other nearly 950 million people are out of reach of the internet, a report by the Associated Chambers of Commerce of India&nbsp;(ASSOCHAM)&nbsp;said on Monday.

&ldquo;Internet penetration is increasing in India, the access to affordable broadband, smart devices and monthly data packages is required to spread digital literacy to make their ends meet&quot;, noted the study titled &quot;Strategic national measures to combat cybercrime&quot;,&nbsp;jointly conducted by ASSOCHAM and research firm Deloitte.

The ASSOCHAM report attributed the lack of internet inclusion to the possible diverse cultures and language barriers that are needed &quot;to drive digital literacy&quot;.

&ldquo;India has over 1,600 languages and various dialects. This diversity has resulted in strong language barriers. In areas where people only use local languages, integration of local language and technology is required to drive digital literacy,&rdquo; the report said.

Along with this the fear of cybercrime and breach of privacy is also high in India.

&ldquo;In order to encourage people to switch to digital means, it is important to provide awareness and education on cyber security, risks and safeguarding of information on the internet,&rdquo; the report said.

Adding to this the report said, &ldquo;India faces a severe shortage of well trained and skilled workers. It is estimated that only 2.3 per cent&nbsp;of the workforce in India has undergone formal skill training versus over 50 per cent&nbsp;in the developed countries. This shortage is accentuated in the electronic and digital sectors.&rdquo;

Speaking about the woes of Micro, Small &amp; Medium Enterprises the report said, &ldquo;The top barriers to adoption of technologies in the economically weaker sections of society as well as in MSMEs include cost and affordability. Most telecom operators so far have not invested significantly in development of high speed access networks in rural areas. Similarly, MSMEs also have low awareness of government and stakeholder schemes that could lead to numerous benefits.&rdquo;

&ldquo;Digital literacy needs to be increased by providing institutional trainings in schools, colleges and universities; accelerating partnerships with global technology leaders and using the workforce trained under Skill India to impart trainings. An integrated approach between Digital India and Skill India needs to be constructed to design programmes and impart training,&rdquo; the report added.&nbsp;

(To read&nbsp;more&nbsp;visit&nbsp;<a href="http://www.zeebiz.com/">www.zeebiz.com</a>)

&nbsp;

The report attributed the lack of internet inclusion to the possible diverse cultures and language barriers in India

By Yoshita Rao Disparity among Indian internet users came to light when on the one hand mobile data plans become more and more affordable while on the other nearly 950 million people are out of reach of the internet, a report by the Associated Chambers of Commerce of India (ASSOCHAM) said on Monday. “Internet penetration is increasing in India, the access to affordable broadband, smart devices and monthly data packages is required to spread digital literacy to make their ends meet", noted the study titled "Strategic national measures to combat cybercrime", jointly conducted by ASSOCHAM and research firm Deloitte. The ASSOCHAM report attributed the lack of internet inclusion to the possible diverse cultures and language barriers that are needed "to drive digital literacy". “India has over 1,600 languages and various dialects. This diversity has resulted in strong language barriers. In areas where people only use local languages, integration of local language and technology is required to drive digital literacy,” the report said. Along with this the fear of cybercrime and breach of privacy is also high in India. “In order to encourage people to switch to digital means, it is important to provide awareness and education on cyber security, risks and safeguarding of information on the internet,” the report said. Adding to this the report said, “India faces a severe shortage of well trained and skilled workers. It is estimated that only 2.3 per cent of the workforce in India has undergone formal skill training versus over 50 per cent in the developed countries. This shortage is accentuated in the electronic and digital sectors.” Speaking about the woes of Micro, Small & Medium Enterprises the report said, “The top barriers to adoption of technologies in the economically weaker sections of society as well as in MSMEs include cost and affordability. Most telecom operators so far have not invested significantly in development of high speed access networks in rural areas. Similarly, MSMEs also have low awareness of government and stakeholder schemes that could lead to numerous benefits.” “Digital literacy needs to be increased by providing institutional trainings in schools, colleges and universities; accelerating partnerships with global technology leaders and using the workforce trained under Skill India to impart trainings. An integrated approach between Digital India and Skill India needs to be constructed to design programmes and impart training,” the report added. (To read more visit www.zeebiz.com)

Demonetisation: Amid clamour for digitisation, 950 million Indians have no internet access, says ASSOCHAM

The government is understood to be mulling an ordinance to impose penalties on anyone possessing the junked Rs 500 and Rs 1,000 notes beyond December 30 when the deadline to deposit them in banks expires.

There was no official word on the move which is likely to come up before the Cabinet on Wednesday but sources said penalties may be imposed on anyone holding more than 10 notes each of the old currency after December 30. The ordinance may also extinguish the liability of the government and RBI towards the promise to pay the bearer of these notes their value because of a statutory requirement.

In 1978 a similar ordinance was issued to end the government&#39;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, allowed holders to either exchange them or deposit them 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.

For those depositing any accounted funds, or black money, it has offered them an amnesty provided they paid 50 per cent of it as tax and penalties and parked a quarter of it in a zero-interest bearing deposit for four years.

Reports said that there could be a cap of holding no more than 10 notes of each after December 30 and violation of the rule could draw a fine of a minimum of Rs 50,000 or 5 times the amount in question -- whichever is higher, but there was no confirmation.

Holders of such currency have an option to deposit them in RBI by March 31 but even that period may be curtailed, they said. Out of the Rs 15.44 lakh crore worth of 500 and 1000 rupee notes in circulation on November 8, close to Rs 13 lakh crore have been deposited in accounts or exchanged for valid currency.

(PTI)

There has been no official word from the government but sources said the ordinance is likely

The government is understood to be mulling an ordinance to impose penalties on anyone possessing the junked Rs 500 and Rs 1,000 notes beyond December 30 when the deadline to deposit them in banks expires. There was no official word on the move which is likely to come up before the Cabinet on Wednesday but sources said penalties may be imposed on anyone holding more than 10 notes each of the old currency after December 30. The ordinance may also extinguish the liability of the government and RBI towards the promise to pay the bearer of these notes their value because of a statutory requirement. 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, allowed holders to either exchange them or deposit them 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. For those depositing any accounted funds, or black money, it has offered them an amnesty provided they paid 50 per cent of it as tax and penalties and parked a quarter of it in a zero-interest bearing deposit for four years. Reports said that there could be a cap of holding no more than 10 notes of each after December 30 and violation of the rule could draw a fine of a minimum of Rs 50,000 or 5 times the amount in question -- whichever is higher, but there was no confirmation. Holders of such currency have an option to deposit them in RBI by March 31 but even that period may be curtailed, they said. Out of the Rs 15.44 lakh crore worth of 500 and 1000 rupee notes in circulation on November 8, close to Rs 13 lakh crore have been deposited in accounts or exchanged for valid currency. (PTI)

Warning! Rs 50,000 fine likely for holding on to old notes

By Dipu Rai

Bahujan Samaj Party (BSP) supremo Mayawati came under Enforcement Directorate (ED) scanner on Friday, as the agency detected cash deposits totalling over Rs 104 crore in an account belonging to the party and Rs 1.43 crore in an account belonging to Anand Kumar, Mayawati&#39;s brother, on Friday.

ED sources said that the accounts had been detected in a branch of the United Bank of India (UBI) in the capital.

Officials said they visited the Karol Bagh branch of the bank as part of their routine survey and enquiry operations to check huge cash deposits, and found that large deposits were made in these two accounts after demonetisation.

The agency found that while Rs 102 crore had been deposited in Rs 1,000 notes, the remaining Rs 3 crore had been deposited in old Rs 500 notes. Officials said that about Rs 15-17 crore were being deposited into these accounts every other day. In Anand&#39;s account, ED officials found old notes worth Rs 18.98 lakh.

The ED has sought details about the accounts from the bank. It has been understood that the agency will write to the Income-Tax (I-T) department. The ED has also asked the bank to provide it some CCTV footage and the KYC documents used to open the accounts.

This is not the first time that the BSP&#39;s supremo&#39;s brother has come under the radar of probe agencies. In April 2015, the Financial Investigation Unit (FIU) started investigating Kumar for alleged dubious transactions, running into crores. The FIU had coordinated with the CBDT and I-T department for a further probe.

Currently, the agency has been carrying out enquiry operations at over 50 bank branches to check possible instances of hawala dealings and money- laundering after the demonetisation drive.

BSP spokespersons and senior leaders refused to comment. Interestingly, the party&#39;s arch rivals, the Samajwadi Party (SP), came to their defence on this issue. A senior SP leader said: &quot;This was not an amount which was found stashed away in homes or lockers. This was an amount deposited in the bank after demonetization. It should not be made a political issue.&quot;

(This article first appeared in DNA)

Another Rs 1.43 crore was found in BSP supremo Mayawati's brother's account in a Delhi bank

By Dipu Rai Bahujan Samaj Party (BSP) supremo Mayawati came under Enforcement Directorate (ED) scanner on Friday, as the agency detected cash deposits totalling over Rs 104 crore in an account belonging to the party and Rs 1.43 crore in an account belonging to Anand Kumar, Mayawati's brother, on Friday. ED sources said that the accounts had been detected in a branch of the United Bank of India (UBI) in the capital. Officials said they visited the Karol Bagh branch of the bank as part of their routine survey and enquiry operations to check huge cash deposits, and found that large deposits were made in these two accounts after demonetisation. The agency found that while Rs 102 crore had been deposited in Rs 1,000 notes, the remaining Rs 3 crore had been deposited in old Rs 500 notes. Officials said that about Rs 15-17 crore were being deposited into these accounts every other day. In Anand's account, ED officials found old notes worth Rs 18.98 lakh. The ED has sought details about the accounts from the bank. It has been understood that the agency will write to the Income-Tax (I-T) department. The ED has also asked the bank to provide it some CCTV footage and the KYC documents used to open the accounts. This is not the first time that the BSP's supremo's brother has come under the radar of probe agencies. In April 2015, the Financial Investigation Unit (FIU) started investigating Kumar for alleged dubious transactions, running into crores. The FIU had coordinated with the CBDT and I-T department for a further probe. Currently, the agency has been carrying out enquiry operations at over 50 bank branches to check possible instances of hawala dealings and money- laundering after the demonetisation drive. BSP spokespersons and senior leaders refused to comment. Interestingly, the party's arch rivals, the Samajwadi Party (SP), came to their defence on this issue. A senior SP leader said: "This was not an amount which was found stashed away in homes or lockers. This was an amount deposited in the bank after demonetization. It should not be made a political issue." (This article first appeared in DNA)

Rs 104 crore found deposited in BSP account after demonetisation

&ldquo;The recommendations aim to strengthen the ecosystem to promote digital payments with a focus on reaching financially and socially excluded groups,&rdquo; the report said.

The committee said that it had studied the domestic scenario and drew on the best practices in the developed world in understanding the trajectory of development in payments industry and various interventions undertaken to promote digital payments.

Here are the 13 recommendations by the committee:

1. Make regulation of payments independent from the function of central banking:

The Committee weighed two options on how best this be implemented: (i) create a&nbsp;new payments regulator, or (ii) make the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI more independent. While both&nbsp;options would serve the intended objective, the Committee recommends that the BPSS be given an independent status which it today lacks by being a sub-committee of the Central Board of RBI. The statutory status of the new Board, within the overall structure of RBI, called Payments Regulatory Board (PRB) should be enshrined in the Payments and Settlement Systems Act, 2007 &ndash; Implementation by MoF: Finalisation of structure of PRB may be done in 30 days.

&nbsp;

2. Update the current Payments and Settlement Systems Act, 2007:

To include explicit mandate for (i) competition and innovation, (ii) open access and interoperability, (iii) consumer protection including penalties and independent appeal mechanism, (iv) regulations on systemic risks, (v) data protection and security and (v) a process of regulatory governance. The Committee has provided drafting instructions for the new Payments and Settlement Systems Act and this may be initiated at the earliest &ndash; Implementation by MoF: Finalisation of amendment bill and placing the same before the Union Cabinet may be done 30 days.

&nbsp;

3. Promote digital payments and receipts within Government:&nbsp;

By (i) adopting digital payments for all its needs, (ii) withdraw all charges levied by Government department and utilities on digital payments and bear the cost of such transactions, (iii) mandate government departments and agencies to provide option to consumers to pay digitally, (iv) incentivise consumers to make payments (including payment of fines and penalties) to Government electronically by giving a discount or cash back, (v) enable consumers to make payments (including taxes) to Government through suitable digital means like cards and wallets, (vi) special emphasis to promote digital payments for recurring low value transactions and (vii) reduce custom duties on payments acceptance equipment.&nbsp;Implementation agencies listed in recommendation section. Steps may be initiated in 30 days and reviewed fortnightly.

4. Create a fund proposed as DIPAYAN from savings generated from cash-less transactions to expand digital payments. Build audit capability to measure savings &ndash; Implementation by MoF, Ministry of Social Justice, Ministry of tribal Affairs and Ministry of Development of North Eastern Region. A time period of 60 days may be considered for initiating implementation by user agencies.

5. Create a ranking and reward framework to encourage and recognise government departments, State Governments, districts and panchayats and other market participants who lead the efforts on enabling digital payments &ndash; Implementation by NITI Aayog along with State Governments. Development of the framework maybe achieved in 60-90 days.

6. Implement other measures to promote digital payments including (i) promoting Aadaar based eKYC and paperless authentication (including where Permanent Account Number (PAN) has not been obtained), (ii) providing disincentives for usage of cash and (iii) creating awareness and transparency on cost of cash &ndash; Implementation by MoF, UIDAI, CBDT, Telecom Regulatory Authority of India (TRAI), Ministry of HRD, DoPT and RBI. May be initiated over 60-90 days.

7. Consider outsourcing the function of operation of payment systems like Real Time Gross Settlement (RTGS) and National Electronic Fund Transafer (NEFT). While moving RTGS to a separate operator is not envisaged for now &ndash; a cost benefit analysis may be initiated as an initial step. Overtime, multiple payment system operators should be encouraged and payment systems should be operated by market entities &ndash; Consultation paper may be released over 180 days.

8. Upgrade payment systems like RTGS and NEFT to operate on 24x7 basis in due course of time. RBI should progressively increase their timings over due course &ndash; A consultation paper may be released over 90 days.

9. Allow non-bank PSPs to directly access payment systems &ndash; Regulations may be released for consultation over 60 days.

10. Require NPCI, to be payments centric in its ownership and objectives. Ownership of NPCI should be diversified widely to include more banks and include non-banks. Its Board should be represented by majority public interest directors and include shareholder directors. NPCI should be allowed to function independently &ndash; Regulations may be released for consultation over 60 days.

11. Enable payments to be inter-operable between bank and non-banks as well as within non-banks. Mobile number and Aadhaar based fully inter-operable payments should be prioritised &ndash; NPCI may enable this on its platforms over 60 days.

12. Create a formal mechanism to enable innovations and new business models &ndash; Consultation paper may be released over 90-120 days.&nbsp;

13. Implement other measures to promote digital payments including issuing regulations on Systemically Important Payment System (SIPS) and Systemically Important Financial Institutions (SIFIs), growing acceptance network, enabling faster and cheaper credit and promoting cross border payments &ndash; Regulations may be released for consultation over 60-180 days. The RBI may within two weeks of releasing this Report, develop a comprehensive metric to quantitatively measure and monitor the enhancement of digital payment services in India.

(To learn more read <a href="http://www.zeebiz.com/">zeebiz.com</a>)

The committee to review the framework related to digital payments presented its report to the government Tuesday

“The recommendations aim to strengthen the ecosystem to promote digital payments with a focus on reaching financially and socially excluded groups,” the report said. The committee said that it had studied the domestic scenario and drew on the best practices in the developed world in understanding the trajectory of development in payments industry and various interventions undertaken to promote digital payments. Here are the 13 recommendations by the committee: 1. Make regulation of payments independent from the function of central banking: The Committee weighed two options on how best this be implemented: (i) create a new payments regulator, or (ii) make the current Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) within RBI more independent. While both options would serve the intended objective, the Committee recommends that the BPSS be given an independent status which it today lacks by being a sub-committee of the Central Board of RBI. The statutory status of the new Board, within the overall structure of RBI, called Payments Regulatory Board (PRB) should be enshrined in the Payments and Settlement Systems Act, 2007 – Implementation by MoF: Finalisation of structure of PRB may be done in 30 days. 2. Update the current Payments and Settlement Systems Act, 2007: To include explicit mandate for (i) competition and innovation, (ii) open access and interoperability, (iii) consumer protection including penalties and independent appeal mechanism, (iv) regulations on systemic risks, (v) data protection and security and (v) a process of regulatory governance. The Committee has provided drafting instructions for the new Payments and Settlement Systems Act and this may be initiated at the earliest – Implementation by MoF: Finalisation of amendment bill and placing the same before the Union Cabinet may be done 30 days. 3. Promote digital payments and receipts within Government: By (i) adopting digital payments for all its needs, (ii) withdraw all charges levied by Government department and utilities on digital payments and bear the cost of such transactions, (iii) mandate government departments and agencies to provide option to consumers to pay digitally, (iv) incentivise consumers to make payments (including payment of fines and penalties) to Government electronically by giving a discount or cash back, (v) enable consumers to make payments (including taxes) to Government through suitable digital means like cards and wallets, (vi) special emphasis to promote digital payments for recurring low value transactions and (vii) reduce custom duties on payments acceptance equipment. Implementation agencies listed in recommendation section. Steps may be initiated in 30 days and reviewed fortnightly. 4. Create a fund proposed as DIPAYAN from savings generated from cash-less transactions to expand digital payments. Build audit capability to measure savings – Implementation by MoF, Ministry of Social Justice, Ministry of tribal Affairs and Ministry of Development of North Eastern Region. A time period of 60 days may be considered for initiating implementation by user agencies. 5. Create a ranking and reward framework to encourage and recognise government departments, State Governments, districts and panchayats and other market participants who lead the efforts on enabling digital payments – Implementation by NITI Aayog along with State Governments. Development of the framework maybe achieved in 60-90 days. 6. Implement other measures to promote digital payments including (i) promoting Aadaar based eKYC and paperless authentication (including where Permanent Account Number (PAN) has not been obtained), (ii) providing disincentives for usage of cash and (iii) creating awareness and transparency on cost of cash – Implementation by MoF, UIDAI, CBDT, Telecom Regulatory Authority of India (TRAI), Ministry of HRD, DoPT and RBI. May be initiated over 60-90 days. 7. Consider outsourcing the function of operation of payment systems like Real Time Gross Settlement (RTGS) and National Electronic Fund Transafer (NEFT). While moving RTGS to a separate operator is not envisaged for now – a cost benefit analysis may be initiated as an initial step. Overtime, multiple payment system operators should be encouraged and payment systems should be operated by market entities – Consultation paper may be released over 180 days. 8. Upgrade payment systems like RTGS and NEFT to operate on 24x7 basis in due course of time. RBI should progressively increase their timings over due course – A consultation paper may be released over 90 days. 9. Allow non-bank PSPs to directly access payment systems – Regulations may be released for consultation over 60 days. 10. Require NPCI, to be payments centric in its ownership and objectives. Ownership of NPCI should be diversified widely to include more banks and include non-banks. Its Board should be represented by majority public interest directors and include shareholder directors. NPCI should be allowed to function independently – Regulations may be released for consultation over 60 days. 11. Enable payments to be inter-operable between bank and non-banks as well as within non-banks. Mobile number and Aadhaar based fully inter-operable payments should be prioritised – NPCI may enable this on its platforms over 60 days. 12. Create a formal mechanism to enable innovations and new business models – Consultation paper may be released over 90-120 days. 13. Implement other measures to promote digital payments including issuing regulations on Systemically Important Payment System (SIPS) and Systemically Important Financial Institutions (SIFIs), growing acceptance network, enabling faster and cheaper credit and promoting cross border payments – Regulations may be released for consultation over 60-180 days. The RBI may within two weeks of releasing this Report, develop a comprehensive metric to quantitatively measure and monitor the enhancement of digital payment services in India. (To learn more read zeebiz.com)

Watal Committee on Digital Payments: Here are 13 recommendations

India&#39;s Congress party vice president Rahul Gandhi and West Bengal chief minister Mamata Banerjee slammed prime minister Narendra Modi over demonetisation, saying it had failed to reduce corruption and arrest the laundering of black money.

The Congress vice-president slammed the Modi government for failing to tackle the problem of cash crunch following demonetisation and said the measure had only made things more miserable for the poor and had increased unemployment in the country. Calling demonetisation a &quot;mega scam,&quot; Mamata Banerjee said the Modi government had lost its credibility and become &quot;baseless&quot; and &quot;faceless&quot; in the name of cashlessness.

Here are the key points from their joint press conference:

<ul>
	<li>December 30 is about to come and the situation is the same. The motive of demonetisation has failed completely: Rahul Gandhi 
	&nbsp;</li>
	<li>PM should answer the nation, that was the real motive of demonetisation and what will he do for those affected by it: Rahul Gandhi 
	&nbsp;</li>
	<li>Demonetisation had no impact on corruption and black money. A new black market has emerged to convert black money into white: Rahul Gandhi 
	&nbsp;</li>
	<li>Modi had said good days (acche din) will come, is this his idea of good days : Mamata Banerjee 
	&nbsp;</li>
	<li>All opposition parties will make a common minimum agenda programme: Mamata Banerjee 
	&nbsp;</li>
	<li>The Modi government has become baseless and faceless in the name of cashlessness: Mamata Banerjee&nbsp; 
	&nbsp;</li>
	<li>Demonetisation is a mega scam and the biggest one after independence: Mamata Banerjee 
	&nbsp;</li>
	<li>They do whatever they feel like, federal structure has been totally destroyed. It is not an emergency, it is a super emergency: Mamata Banerjee 
	&nbsp;</li>
	<li>This is a fearless government, they do not care about anything: Mamata Banerjee 
	&nbsp;</li>
	<li>If things remain unresolved even after 50 days, will PM Modi take responsibility to resign as PM of the country?: Mamata Banerjee 
	&nbsp;</li>
	<li>This has sent the country 20 years back in time: Mamata Banerjee&nbsp;</li>
</ul>

 
(WION)

Rahul Gandhi alleged demonetisation had no impact on corruption and black money

India's Congress party vice president Rahul Gandhi and West Bengal chief minister Mamata Banerjee slammed prime minister Narendra Modi over demonetisation, saying it had failed to reduce corruption and arrest the laundering of black money. The Congress vice-president slammed the Modi government for failing to tackle the problem of cash crunch following demonetisation and said the measure had only made things more miserable for the poor and had increased unemployment in the country. Calling demonetisation a "mega scam," Mamata Banerjee said the Modi government had lost its credibility and become "baseless" and "faceless" in the name of cashlessness. Here are the key points from their joint press conference: December 30 is about to come and the situation is the same. The motive of demonetisation has failed completely: Rahul Gandhi PM should answer the nation, that was the real motive of demonetisation and what will he do for those affected by it: Rahul Gandhi Demonetisation had no impact on corruption and black money. A new black market has emerged to convert black money into white: Rahul Gandhi Modi had said good days (acche din) will come, is this his idea of good days : Mamata Banerjee All opposition parties will make a common minimum agenda programme: Mamata Banerjee The Modi government has become baseless and faceless in the name of cashlessness: Mamata Banerjee Demonetisation is a mega scam and the biggest one after independence: Mamata Banerjee They do whatever they feel like, federal structure has been totally destroyed. It is not an emergency, it is a super emergency: Mamata Banerjee This is a fearless government, they do not care about anything: Mamata Banerjee If things remain unresolved even after 50 days, will PM Modi take responsibility to resign as PM of the country?: Mamata Banerjee This has sent the country 20 years back in time: Mamata Banerjee (WION)

Demonetisation has failed: Rahul Gandhi, Mamata Banerjee slam PM Modi's initiative

The government is ready to start using the Benami Transactions (Prohibition) Amendment Act, 2016, Prime Minister Modi said Sunday.&nbsp;

Modi had on Sunday said during his Mann Ki Baat radio address that his government would soon operationalise a strong law to effectively deal with &quot;benami&quot;&nbsp;properties.&nbsp;

The word &quot; benami &quot; means &ldquo;without name&rdquo;. A benami property is property bought by a person, but not in his or her name. &nbsp;

The Act itself was passed before the recent&nbsp;demonetisation was announced.

The Lok Sabha passed the Benami Transactions Amendment Bill, 2015 on July 28 this year. Finance minister Arun Jaitley had tabled the bill in the Lok Sabha, saying the legislation would target &quot;black&quot;&nbsp;money, help seize benami property, and prosecute the people responsible for it.&nbsp;

&quot;A lot of people who have unaccounted money buy benami property in the name of fictitious persons ... these transactions have to be discouraged,&quot; he had said.&nbsp;

The Act came into effect on November 1,&nbsp;and aims to put a stop to &quot;benami&quot;&nbsp;or proxy transactions.&nbsp;

After the Act came into effect, the existing Benami Transactions (Prohibition) Act, 1988 was renamed the Prohibition of Benami Property Transactions Act (PBPT) 1988.

What the Prohibition of Benami Property Transactions (PBPT) Act will do:

1. &nbsp; &nbsp;The PBPT Act defines benami transactions and prohibits them, stating that violation of the Act will be punishable with imprisonment and a fine.

2. &nbsp; &nbsp;It prohibits the recovery of the property held benami from the benamidar by the real owner.&nbsp;

3. &nbsp; &nbsp;Properties held benami are liable for confiscation by the government, without payment of compensation.&nbsp;

4. &nbsp; &nbsp;An appellate mechanism has been provided under the PBPT Act in the form of the Adjudicating Authority and Appellate Tribunal.&nbsp;

5. &nbsp; &nbsp;The Adjudicating Authority referred to in section 6(1) of the Prevention of Money Laundering Act, 2002 (PMLA) and the Appellate Tribunal referred to in section 25 of the PMLA have been notified as the Adjudicating Authority and Appellate Tribunal, respectively, for purposes of the PBPT Act.&nbsp;

6. &nbsp; &nbsp;A Joint/Additional Commissioner of Income-tax, an Assistant/Deputy Commissioner of Income-tax and a Tax Recovery Officer&hellip; have been notified to perform the functions and exercise the powers of the Approving Authority, Initiating Officer and Administrator, respectively under the PBPT Act.&nbsp;

(WION) 
&nbsp;

Violators will be imprisoned & fined, and their property confiscated

The government is ready to start using the Benami Transactions (Prohibition) Amendment Act, 2016, Prime Minister Modi said Sunday. Modi had on Sunday said during his Mann Ki Baat radio address that his government would soon operationalise a strong law to effectively deal with "benami" properties. The word " benami " means “without name”. A benami property is property bought by a person, but not in his or her name. The Act itself was passed before the recent demonetisation was announced. The Lok Sabha passed the Benami Transactions Amendment Bill, 2015 on July 28 this year. Finance minister Arun Jaitley had tabled the bill in the Lok Sabha, saying the legislation would target "black" money, help seize benami property, and prosecute the people responsible for it. "A lot of people who have unaccounted money buy benami property in the name of fictitious persons ... these transactions have to be discouraged," he had said. The Act came into effect on November 1, and aims to put a stop to "benami" or proxy transactions. After the Act came into effect, the existing Benami Transactions (Prohibition) Act, 1988 was renamed the Prohibition of Benami Property Transactions Act (PBPT) 1988. What the Prohibition of Benami Property Transactions (PBPT) Act will do: 1. The PBPT Act defines benami transactions and prohibits them, stating that violation of the Act will be punishable with imprisonment and a fine. 2. It prohibits the recovery of the property held benami from the benamidar by the real owner. 3. Properties held benami are liable for confiscation by the government, without payment of compensation. 4. An appellate mechanism has been provided under the PBPT Act in the form of the Adjudicating Authority and Appellate Tribunal. 5. The Adjudicating Authority referred to in section 6(1) of the Prevention of Money Laundering Act, 2002 (PMLA) and the Appellate Tribunal referred to in section 25 of the PMLA have been notified as the Adjudicating Authority and Appellate Tribunal, respectively, for purposes of the PBPT Act. 6. A Joint/Additional Commissioner of Income-tax, an Assistant/Deputy Commissioner of Income-tax and a Tax Recovery Officer… have been notified to perform the functions and exercise the powers of the Approving Authority, Initiating Officer and Administrator, respectively under the PBPT Act. (WION)

What the Benami Properties Act will do

There is growing consensus among bankers that the restrictions on cash withdrawals from banks and ATMs will continue after December 30. Prime Minister Modi&#39;s self-imposed 50-day deadline -- he had asked the people for 50 days to fix the fallout from demonetisation -- comes to an end on December 30.&nbsp;

But PTI reported that the country&#39;s central bank -- the Reserve Bank of India -- and currency printing presses were not being able to keep pace with the demand for new currency notes. And that&nbsp;the restrictions would therefore continue. &nbsp;

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<h5>Most of us think that the withdrawal limit would not be completely withdrawn. It is a possibility that it could be relaxed if the cash situation improves,&#39; said a senior public sector bank official</h5>
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PTI added that banks at many places are still not being able to hand out the Rs&nbsp;24,000 customers are allowed to withdraw a week; so the idea of doing away with the restriction right now seems far-fetched.

&quot;Most of us think that the withdrawal limit would not be completely withdrawn. It is a possibility that it could be relaxed if the cash situation improves,&quot; PTI reported a senior public sector bank official as saying.

The official added that when banks are struggling to meet the demand of individual customers, it would be impossible for them to service the cash needs of small and medium enterprises, and the big corporates which require cash in large quantities. The official said the practical way then would be to relax the restrictions gradually.

The State Bank of India chairperson Arundhati Bhattacharya, PTI reported,&nbsp;had also said recently that the restrictions on cash withdrawals cannot be lifted, entirely, unless and until more cash is made available to banks.

After the demonetisation of high-value Rs&nbsp;500/1,000 notes, the government fixed a limit of Rs 24,000 a week on cash withdrawal from banks and Rs&nbsp;2,000 a day from ATMs.

The government did not specify when the restrictions would be withdrawn, apart from finance secretary Ashok Lavasa saying the withdrawal caps would be reviewed after December 30.

PTI said even the bank unions are of the opinion that the restrictions cannot be done away with at one go.

PTI reported the All India Bank Officers&#39; Confederation general secretary Harvinder Singh as saying that in all likelihood, the restrictions on withdrawals would continue for some more time in the best interest of banks, as well as customers.

(WION with inputs from PTI)

The RBI, printing presses have not been able to keep pace with the demand for new currency notes

There is growing consensus among bankers that the restrictions on cash withdrawals from banks and ATMs will continue after December 30. Prime Minister Modi's self-imposed 50-day deadline -- he had asked the people for 50 days to fix the fallout from demonetisation -- comes to an end on December 30. But PTI reported that the country's central bank -- the Reserve Bank of India -- and currency printing presses were not being able to keep pace with the demand for new currency notes. And that the restrictions would therefore continue. Most of us think that the withdrawal limit would not be completely withdrawn. It is a possibility that it could be relaxed if the cash situation improves,' said a senior public sector bank official × PTI added that banks at many places are still not being able to hand out the Rs 24,000 customers are allowed to withdraw a week; so the idea of doing away with the restriction right now seems far-fetched. "Most of us think that the withdrawal limit would not be completely withdrawn. It is a possibility that it could be relaxed if the cash situation improves," PTI reported a senior public sector bank official as saying. The official added that when banks are struggling to meet the demand of individual customers, it would be impossible for them to service the cash needs of small and medium enterprises, and the big corporates which require cash in large quantities. The official said the practical way then would be to relax the restrictions gradually. The State Bank of India chairperson Arundhati Bhattacharya, PTI reported, had also said recently that the restrictions on cash withdrawals cannot be lifted, entirely, unless and until more cash is made available to banks. After the demonetisation of high-value Rs 500/1,000 notes, the government fixed a limit of Rs 24,000 a week on cash withdrawal from banks and Rs 2,000 a day from ATMs. The government did not specify when the restrictions would be withdrawn, apart from finance secretary Ashok Lavasa saying the withdrawal caps would be reviewed after December 30. PTI said even the bank unions are of the opinion that the restrictions cannot be done away with at one go. PTI reported the All India Bank Officers' Confederation general secretary Harvinder Singh as saying that in all likelihood, the restrictions on withdrawals would continue for some more time in the best interest of banks, as well as customers. (WION with inputs from PTI)

Demonetisation: Restrictions on cash withdrawals may continue beyond Dec 30, say bankers

Vowing to carry forward the war against corruption and black money post-demonetisation, Prime Minister Narendra Modi today said the government would soon operationalise a strong law to effectively deal with &#39;benami&#39; properties and this was just the beginning.

Making his last monthly address this year in his &quot;Mann ki Baat&quot; programme, the prime minister defended the frequent changes in the rules of demonetisation, saying these have been done to reduce the people&#39;s problems and defeat such forces who are out to thwart his government&#39;s fight against black money and corruption.

Modi sought the cooperation of public in making the &quot;war on corruption&quot; a success and said the wrongdoings of some are being caught only with the support of common people who are coming forward with concrete information about hoarders.

&quot;I assure you that this is not the end. This is just the beginning in our fight against corruption. We have to win this war against corruption and black money. There is no question of stopping or going back in this fight,&quot; he said.

The prime minister also lamented the logjam in Parliament that evoked displeasure from the president and the vice president besides all-round public indignation and ire, saying he wanted a good discussion on this campaign as well as on political funding, had both Houses run properly.

He said some people who are spreading rumours that political parties enjoy all concessions and exemptions &quot;are wrong and all are equal before law&quot; and they have to abide by it.

&quot;It was my earnest wish that the ongoing campaign against corruption and black money, including the realm of political parties and political funding, be discussed extensively in the Parliament. Had the House functioned properly, there would have been comprehensive deliberation.

&quot;Some people are spreading rumours that political parties enjoy all kinds of concessions. These people are absolutely in the wrong. The law applies equally to all. Whether it is an individual, an organisation or a political party, everyone has to abide by law and one will have to,&quot; he said, adding that people who cannot endorse corruption and black money openly resort to searching for faults of the government relentlessly.

Giving a push to his plea for cashless economy, Modi also launched two new schemes for traders and customers that will dole out 15,000 prizes every day to those making digital transactions. 
 
(PTI) 
&nbsp;

Modi also defended the frequent changes in the rules of demonetisation, saying these had been done to reduce people's problems

Vowing to carry forward the war against corruption and black money post-demonetisation, Prime Minister Narendra Modi today said the government would soon operationalise a strong law to effectively deal with 'benami' properties and this was just the beginning. Making his last monthly address this year in his "Mann ki Baat" programme, the prime minister defended the frequent changes in the rules of demonetisation, saying these have been done to reduce the people's problems and defeat such forces who are out to thwart his government's fight against black money and corruption. Modi sought the cooperation of public in making the "war on corruption" a success and said the wrongdoings of some are being caught only with the support of common people who are coming forward with concrete information about hoarders. "I assure you that this is not the end. This is just the beginning in our fight against corruption. We have to win this war against corruption and black money. There is no question of stopping or going back in this fight," he said. The prime minister also lamented the logjam in Parliament that evoked displeasure from the president and the vice president besides all-round public indignation and ire, saying he wanted a good discussion on this campaign as well as on political funding, had both Houses run properly. He said some people who are spreading rumours that political parties enjoy all concessions and exemptions "are wrong and all are equal before law" and they have to abide by it. "It was my earnest wish that the ongoing campaign against corruption and black money, including the realm of political parties and political funding, be discussed extensively in the Parliament. Had the House functioned properly, there would have been comprehensive deliberation. "Some people are spreading rumours that political parties enjoy all kinds of concessions. These people are absolutely in the wrong. The law applies equally to all. Whether it is an individual, an organisation or a political party, everyone has to abide by law and one will have to," he said, adding that people who cannot endorse corruption and black money openly resort to searching for faults of the government relentlessly. Giving a push to his plea for cashless economy, Modi also launched two new schemes for traders and customers that will dole out 15,000 prizes every day to those making digital transactions. (PTI)

PM Modi vows strong law against fictitious properties soon

The sari textile industry in Mathura, Uttar Pradesh, has been severely hit by demonetisation.

Factory owners have said that they seem to be left with no option but to close their factories as there is no cash flow in the market.

&quot;The owners are waiting for &#39;Ache Din&#39;&nbsp;as promised by Prime Minister Narendra Modi,&quot; said one factory director.

Factory owners believe that the government needs to come up with concrete solutions to end their sufferings.&quot;We are in dilemma about what we should do,&quot; said one worker.&nbsp;

(ANI)

Factory owners said they seem to be left with no option but to close their factories as there is no cash flow in the market

The sari textile industry in Mathura, Uttar Pradesh, has been severely hit by demonetisation. Factory owners have said that they seem to be left with no option but to close their factories as there is no cash flow in the market. "The owners are waiting for 'Ache Din' as promised by Prime Minister Narendra Modi," said one factory director. Factory owners believe that the government needs to come up with concrete solutions to end their sufferings."We are in dilemma about what we should do," said one worker. (ANI)

India: Mathura sari industry hit by demonetisation

By Amita Shah&nbsp;

After demonetisation, the government is now trying to fight the &quot;demons&quot;&nbsp;that could come in the way of ensuring a &quot;less-cash&quot;&nbsp;economy. As part of this exercise, the government is examining a proposal that could lead to sterner action in cheque-bouncing cases.

With more people using non-cash modes for transactions, the government is facing demands, particularly from traders&#39; bodies, for a legal system that makes payments made through cheques more secure, according to sources.

If the proposal is accepted, the government could come out with a legislation to amend the law pertaining to cheque bounce cases. Among the measures the government is examining is one that gives the defaulter a month&#39;s time, after which, if the matter remains unsettled, he or she will be arrested even before the case is settled, the sources said.

At present, dishonour of a cheque, in view of inadequate funds in account, is a criminal offence under Section 138 of the Negotiable Instruments (Amendment) Act, 1881, and can be punishable with imprisonment for a term which may extend to two years or with fine of twice the amount of the cheque or both.

Sources said that despite the law, there were several instances when the payee was made to wait to get the money for years after a cheque bounced. There were 18 lakh cases of cheque dishonour pending in courts across the country till 2014 end, according to a reply in Lok Sabha. While Maharashtra topped the list of such pending cases, it was followed by Gujarat, Rajasthan and West Bengal.

The proposed amendments to deal with this issue, which are yet to get the final stamp of approval, could be brought in the budget session of Parliament in February. The objective is to cut down litigation and act as deterrent to defaulters.

The traders, who traditionally have been BJP supporters, have expressed concerns about the problems of cheque bouncing, particularly at a time when more and more people were adopting non-cash mode of payments, the sources said.

Ghanshyam Aggarwal, former co-convenor of the BJP&#39;s traders cell, said traders&#39; apprehensions on various issues after demonetization, like the problems they faced due to the limit on cash withdrawal have been conveyed to Finance Minister Arun Jaitley.

Earlier this year, the government had notified the Negotiable Instruments (Amendment) Bill, 2015, to allow filing of cheque bounce cases in a court at the place where it was presented for clearance and not the place of issue. Litigants had to sometimes travel long distances to different places from where cheques were issued and not honoured.

(This article first appeared in DNA)

With the govt pushing people to go cashless, the people are pushing back, demanding that cheque payments be made more secure

By Amita Shah After demonetisation, the government is now trying to fight the "demons" that could come in the way of ensuring a "less-cash" economy. As part of this exercise, the government is examining a proposal that could lead to sterner action in cheque-bouncing cases. With more people using non-cash modes for transactions, the government is facing demands, particularly from traders' bodies, for a legal system that makes payments made through cheques more secure, according to sources. If the proposal is accepted, the government could come out with a legislation to amend the law pertaining to cheque bounce cases. Among the measures the government is examining is one that gives the defaulter a month's time, after which, if the matter remains unsettled, he or she will be arrested even before the case is settled, the sources said. At present, dishonour of a cheque, in view of inadequate funds in account, is a criminal offence under Section 138 of the Negotiable Instruments (Amendment) Act, 1881, and can be punishable with imprisonment for a term which may extend to two years or with fine of twice the amount of the cheque or both. Sources said that despite the law, there were several instances when the payee was made to wait to get the money for years after a cheque bounced. There were 18 lakh cases of cheque dishonour pending in courts across the country till 2014 end, according to a reply in Lok Sabha. While Maharashtra topped the list of such pending cases, it was followed by Gujarat, Rajasthan and West Bengal. The proposed amendments to deal with this issue, which are yet to get the final stamp of approval, could be brought in the budget session of Parliament in February. The objective is to cut down litigation and act as deterrent to defaulters. The traders, who traditionally have been BJP supporters, have expressed concerns about the problems of cheque bouncing, particularly at a time when more and more people were adopting non-cash mode of payments, the sources said. Ghanshyam Aggarwal, former co-convenor of the BJP's traders cell, said traders' apprehensions on various issues after demonetization, like the problems they faced due to the limit on cash withdrawal have been conveyed to Finance Minister Arun Jaitley. Earlier this year, the government had notified the Negotiable Instruments (Amendment) Bill, 2015, to allow filing of cheque bounce cases in a court at the place where it was presented for clearance and not the place of issue. Litigants had to sometimes travel long distances to different places from where cheques were issued and not honoured. (This article first appeared in DNA)

Demonetisation: Government looking at strengthening cheque bounce law

Restrictions on withdrawal of cash from banks and ATMs are likely to continue beyond December 30 as currency printing presses and RBI have not been able to keep pace with the demand of new currency notes.&nbsp;

As the 50-day deadline for completion of demonetisation process draws near, there is a growing consensus among bankers that the restrictions on withdrawal would have to continue even in the New Year so as to maintain orderly working at the banks.&nbsp;

Banks at many places are not in a position to disburse even the current limit of Rs 24,000 per week due to cash crunch and are rationing the valid currency depending on cash availability.

If this limit is withdrawn for individual and businesses from January 2, it is unlikely that banks would be able to disburse the higher demand for valid currencies given the current cash position.

&quot;Most of us think that the withdrawal limit would not be completely withdrawn. It is a possibility that it could be relaxed if the cash situation improves,&quot; said a senior public sector bank official.

At a time when banks are struggling to meet the demand of individual customers, it would be impossible to service MSME and big corporates which requires cash in large quantity, the official said, the practical way would be to relax it gradually.

Recently, SBI Chairperson Arundhati Bhattacharya had also indicated that restriction on withdrawals cannot be lifted entirely unless more cash is made available to banks.

After the demonetisation of high value Rs 500/1000 notes, the government has fixed a limit of Rs 24,000 per week on withdrawal from bank accounts and Rs 2,500 per day from ATMs in view of the currency crunch that followed.

The government and RBI has not specified when the restrictions will be withdrawn. Finance Secretary Ashok Lavasa had said the withdrawal cap would be will be reviewed after December 30.

Even bank unions are also of the opinion that the restrictions cannot be done away with in one go. In all likelihood the restriction on withdrawal would continue for some more time in the best interest of banks as well as customers at large, said All India Bank Officers&#39; 
Confederation (AIBOC) General Secretary Harvinder Singh.

The situation of currency supply is known to everyone and it would be difficult to lift the limit from January 2, Singh said, adding that SME and small businesses are waiting for cap to go so that they can withdraw as per their requirement.

Reserve Bank of India has infused Rs 5.92 lakh crore in the banking system between November 9 and December 19 against Rs 15.4 lakh crore of scrapped notes. According to RBI, banks had got deposits of Rs 12.4 lakh crore defunct notes by December 10. 
 
(PTI) 
&nbsp;

There is a growing consensus among bankers that the restrictions on withdrawal will have to continue

Restrictions on withdrawal of cash from banks and ATMs are likely to continue beyond December 30 as currency printing presses and RBI have not been able to keep pace with the demand of new currency notes. As the 50-day deadline for completion of demonetisation process draws near, there is a growing consensus among bankers that the restrictions on withdrawal would have to continue even in the New Year so as to maintain orderly working at the banks. Banks at many places are not in a position to disburse even the current limit of Rs 24,000 per week due to cash crunch and are rationing the valid currency depending on cash availability. If this limit is withdrawn for individual and businesses from January 2, it is unlikely that banks would be able to disburse the higher demand for valid currencies given the current cash position. "Most of us think that the withdrawal limit would not be completely withdrawn. It is a possibility that it could be relaxed if the cash situation improves," said a senior public sector bank official. At a time when banks are struggling to meet the demand of individual customers, it would be impossible to service MSME and big corporates which requires cash in large quantity, the official said, the practical way would be to relax it gradually. Recently, SBI Chairperson Arundhati Bhattacharya had also indicated that restriction on withdrawals cannot be lifted entirely unless more cash is made available to banks. After the demonetisation of high value Rs 500/1000 notes, the government has fixed a limit of Rs 24,000 per week on withdrawal from bank accounts and Rs 2,500 per day from ATMs in view of the currency crunch that followed. The government and RBI has not specified when the restrictions will be withdrawn. Finance Secretary Ashok Lavasa had said the withdrawal cap would be will be reviewed after December 30. Even bank unions are also of the opinion that the restrictions cannot be done away with in one go. In all likelihood the restriction on withdrawal would continue for some more time in the best interest of banks as well as customers at large, said All India Bank Officers' Confederation (AIBOC) General Secretary Harvinder Singh. The situation of currency supply is known to everyone and it would be difficult to lift the limit from January 2, Singh said, adding that SME and small businesses are waiting for cap to go so that they can withdraw as per their requirement. Reserve Bank of India has infused Rs 5.92 lakh crore in the banking system between November 9 and December 19 against Rs 15.4 lakh crore of scrapped notes. According to RBI, banks had got deposits of Rs 12.4 lakh crore defunct notes by December 10. (PTI)

Demonetisation: Restrictions on cash withdrawals likely to continue beyond December 30

PM Narendra Modi on Saturday inaugurated a new campus of Sebi-run National Institute of Securities Markets (NISM) at Patalganga in neighbouring Raigad district near Mumbai, and said that he will not shy away from taking difficult decisions if they are in the country&#39;s interest.

Addressing a gathering, Modi said that demonetisation is a short-term pain, but it will benefit in long-term.

Stating that the government is very keen to encourage start-ups and stock markets are essential for the start-up ecosystem, Modi added,&quot;Our markets should show that they are able to successfully raise capital for projects benefiting the vast majority of our population.&quot;

Here are the 12 things PM Modi said during his address:

<ul>
	<li>This is time of slowdown in global economy; India is being seen as a bright spot with growth projected to be highest in world.</li>
	<li>India&rsquo;s place as the fastest growing large economy has not come about by accident.</li>
	<li>In less than 3 years, government has transformed economy, cut fiscal deficit, CAD; foreign exchange reserves have grown, inflation is lower.</li>
	<li>Long awaited GST will soon be a reality; FDI is at record levels.</li>
	<li>Financial markets can play an important role in the modern economy. However history has shown that financial markets can also do damage if not properly regulated.</li>
	<li>Government will continue to follow sound and prudent economic policies. We will not take decisions for short-term political point scoring.</li>
	<li>Will not shy away from taking difficult decisions if they are in country&#39;s interest.</li>
	<li>Demonetisation is a short-term pain, but will benefit in long-term.</li>
	<li>My aim is to make India a developed country in one generation.</li>
	<li>India has earned a good name for its well regulated securities markets.</li>
	<li>Government is very keen to encourage start-ups. Stock markets are essential for the start-up ecosystem.</li>
	<li>Stock markets should help in raising capital for productive purpose; bond market must become source of long-term infra finance.</li>
</ul>

(This report was first published in DNA)

Modi also said he would not hesitate in taking difficult decisions if they are in the country's interest.

PM Narendra Modi on Saturday inaugurated a new campus of Sebi-run National Institute of Securities Markets (NISM) at Patalganga in neighbouring Raigad district near Mumbai, and said that he will not shy away from taking difficult decisions if they are in the country's interest. Addressing a gathering, Modi said that demonetisation is a short-term pain, but it will benefit in long-term. Stating that the government is very keen to encourage start-ups and stock markets are essential for the start-up ecosystem, Modi added,"Our markets should show that they are able to successfully raise capital for projects benefiting the vast majority of our population." Here are the 12 things PM Modi said during his address: This is time of slowdown in global economy; India is being seen as a bright spot with growth projected to be highest in world. India’s place as the fastest growing large economy has not come about by accident. In less than 3 years, government has transformed economy, cut fiscal deficit, CAD; foreign exchange reserves have grown, inflation is lower. Long awaited GST will soon be a reality; FDI is at record levels. Financial markets can play an important role in the modern economy. However history has shown that financial markets can also do damage if not properly regulated. Government will continue to follow sound and prudent economic policies. We will not take decisions for short-term political point scoring. Will not shy away from taking difficult decisions if they are in country's interest. Demonetisation is a short-term pain, but will benefit in long-term. My aim is to make India a developed country in one generation. India has earned a good name for its well regulated securities markets. Government is very keen to encourage start-ups. Stock markets are essential for the start-up ecosystem. Stock markets should help in raising capital for productive purpose; bond market must become source of long-term infra finance. (This report was first published in DNA)

Demonetisation short-term pain, will benefit in the long term : PM Modi

Hindu seers and ascetics recently criticised Indian Prime Minister Narendra Modi&#39;s call for a cashless economy, according to a PTI report.

In a surprise move, Modi on November 8 announced the withdrawal of 500 and 1,00 rupee notes from circulation, causing panic and chaos.

The BJP government has said the move was aimed at encouraging digital payments and to fight black money. &nbsp;

But, Hindu priests and seers are not very happy about it.

According to Hindu traditions, any &#39;dakshina&#39; or money paid to seers and priests is to be made in cash and is supposed to be a secret.

President of Akhil Bharatiya Akhara Parishad, apex body of Hindu seers, Narendra Giri, said the move threatened an age-old tradition, PTI reported.

&quot;According to our tradition, whenever saints, priests or spiritual leaders are given food they should be given &#39;dakshina&#39; in terms of cash or in kind. How can we stop this tradition? If Modi wants to end this tradition then he can do so. If he wants to end the culture of saints, then he can. He does not want any saints to remain in India and that the eternal tradition ends,&quot; PTI quoted Giri as saying.

Some temples are trying to cope up with the aftermath of demonetisation as donations dry up.

The priest of a local temple, Shyam Pathak, said the authorities were planning to install a card swiping machine soon.

&quot;I think that a card swipe machine should be kept here as soon as possible so that things will be made easier for the devotees and we will also face less problems. A card swiping machine has not been installed yet but efforts are on to get it very soon,&quot; PTI quoted Pathak as saying.&nbsp;

(WION with inputs from PTI)

Any money paid to seers is to be made in cash, but with Modi's move to promote digital payments they now fear their income will dry up

Hindu seers and ascetics recently criticised Indian Prime Minister Narendra Modi's call for a cashless economy, according to a PTI report. In a surprise move, Modi on November 8 announced the withdrawal of 500 and 1,00 rupee notes from circulation, causing panic and chaos. The BJP government has said the move was aimed at encouraging digital payments and to fight black money. But, Hindu priests and seers are not very happy about it. According to Hindu traditions, any 'dakshina' or money paid to seers and priests is to be made in cash and is supposed to be a secret. President of Akhil Bharatiya Akhara Parishad, apex body of Hindu seers, Narendra Giri, said the move threatened an age-old tradition, PTI reported. "According to our tradition, whenever saints, priests or spiritual leaders are given food they should be given 'dakshina' in terms of cash or in kind. How can we stop this tradition? If Modi wants to end this tradition then he can do so. If he wants to end the culture of saints, then he can. He does not want any saints to remain in India and that the eternal tradition ends," PTI quoted Giri as saying. Some temples are trying to cope up with the aftermath of demonetisation as donations dry up. The priest of a local temple, Shyam Pathak, said the authorities were planning to install a card swiping machine soon. "I think that a card swipe machine should be kept here as soon as possible so that things will be made easier for the devotees and we will also face less problems. A card swiping machine has not been installed yet but efforts are on to get it very soon," PTI quoted Pathak as saying. (WION with inputs from PTI)

Demonetisation: Hindu seers, ascetics criticise Modi's move for cashless economy

The per value transcations of debit and credit cards at points of sale (PoS) terminals has declined post-demonetisation, suggesting the country has a long way to move from cash-based economy to a complete digital one, says a report.

The debit and credit cards transactions at PoSes were worth Rs 352.4 billion in value terms in November and Rs 181.3 billion till December 13, compared to Rs 511.2 billion in October.

The average transaction at PoSes was Rs 1,714 for November and Rs 1,643 for December compared to Rs 2,229 in October, says an SBI Research report.

&quot;The per value transaction declined in post demonetisation, which may be due to less number of PoS machines in the country compared to the demand,&quot; says the report.

It said the country has 15.1 lakh PoS machines but may need an additional 20 lakh more if digitisation has to gain traction. The report says looking at the usage of debit cards only on PoSes, the numbers are still a long way to go.

As of October, per debit card transaction at PoS was Rs 1,500 only, and the number of times transacted was only 1.3. &quot;Thus on an annualized basis, debit card transaction is around Rs 24,000,&quot; it said.

It said the government should thus incentivise the usage of debit card (there are 74 crore debit cards in use) on PoS by giving tax concession like 80C.

The per transaction value of pre-paid instruments (PPIs) including m-wallet also declined post demonetisation.

&quot;This decline is possible due to the fact that still customers are not comfortable in using m-wallets either due to lack of security or trust or awareness,&quot; the report said.

The report, however, said the mobile banking transaction data indicates a huge success, with total volume through mobile banking increased by 9.7 per cent month-on-month to Rs 1245 billion in November 2016.

The per transaction value increased by a whopping Rs 17,207 in November from Rs 14,536 in October.

The report said the current size of digital banking including credit card and debit cards through PoS terminals, transaction through PPIs like m-Wallet, PPI cards and mobile banking is around Rs 1.7 trillion.

This size has to increase from the current level to atleast Rs 3.5 trillion which is a conservative estimate of the gap between the actual currency in circulation and required currency in circulation.

It said there is a need to ensure that per mobile banking transaction increases from the current level of Rs 14,500 to Rs 25,000 monthly.

And therefore to fully utilise the potential residing in the digital channel, banks also need to focus on PPIs, particularly on mobile wallets.

Mobile wallets transactions need to increase from current level of Rs 34 billion to around Rs 100 billion going forward.

&quot;This means that value per transaction is increasing significantly from current level of mere Rs 475 to around Rs 1000,&quot; the report concludes.&nbsp;

(PTI)

The slide in numbers suggests the enormity of the task at hand before the country is transformed into a cashless economy

The per value transcations of debit and credit cards at points of sale (PoS) terminals has declined post-demonetisation, suggesting the country has a long way to move from cash-based economy to a complete digital one, says a report. The debit and credit cards transactions at PoSes were worth Rs 352.4 billion in value terms in November and Rs 181.3 billion till December 13, compared to Rs 511.2 billion in October. The average transaction at PoSes was Rs 1,714 for November and Rs 1,643 for December compared to Rs 2,229 in October, says an SBI Research report. "The per value transaction declined in post demonetisation, which may be due to less number of PoS machines in the country compared to the demand," says the report. It said the country has 15.1 lakh PoS machines but may need an additional 20 lakh more if digitisation has to gain traction. The report says looking at the usage of debit cards only on PoSes, the numbers are still a long way to go. As of October, per debit card transaction at PoS was Rs 1,500 only, and the number of times transacted was only 1.3. "Thus on an annualized basis, debit card transaction is around Rs 24,000," it said. It said the government should thus incentivise the usage of debit card (there are 74 crore debit cards in use) on PoS by giving tax concession like 80C. The per transaction value of pre-paid instruments (PPIs) including m-wallet also declined post demonetisation. "This decline is possible due to the fact that still customers are not comfortable in using m-wallets either due to lack of security or trust or awareness," the report said. The report, however, said the mobile banking transaction data indicates a huge success, with total volume through mobile banking increased by 9.7 per cent month-on-month to Rs 1245 billion in November 2016. The per transaction value increased by a whopping Rs 17,207 in November from Rs 14,536 in October. The report said the current size of digital banking including credit card and debit cards through PoS terminals, transaction through PPIs like m-Wallet, PPI cards and mobile banking is around Rs 1.7 trillion. This size has to increase from the current level to atleast Rs 3.5 trillion which is a conservative estimate of the gap between the actual currency in circulation and required currency in circulation. It said there is a need to ensure that per mobile banking transaction increases from the current level of Rs 14,500 to Rs 25,000 monthly. And therefore to fully utilise the potential residing in the digital channel, banks also need to focus on PPIs, particularly on mobile wallets. Mobile wallets transactions need to increase from current level of Rs 34 billion to around Rs 100 billion going forward. "This means that value per transaction is increasing significantly from current level of mere Rs 475 to around Rs 1000," the report concludes. (PTI)

Demonetisation: Slump in use of cards despite cash scrap

DONT USE THIS STORY TILL CLEARANCE BY TATHA OR ANURADHA

It is a unique Indian bank, with its own set of rules,&nbsp;not governed by Reserve Bank of India.

In this bank, you can deposit your ill-earned money without any eyebrows raised; welcome to State Bank of Sikkim, which&nbsp;some people have branded as &lsquo;The Swiss Bank of India&rsquo;.&nbsp;

In the &quot;demonetised&quot; Indian economy, State Bank of Sikkim has become a haven&nbsp;for black money hoarders across India for depositing their illegal money without paying any taxes or producing any KYC (know your customer) documents.&nbsp;

State Bank of Sikkim is a treasury of the Sikkim Government and does not fall under the purview of Reserve Bank of India or any banking regulation.&nbsp;

State Bank of Sikkim was established in 1968 under the Proclamation of Chogyal (erstwhile King of Sikkim) which is protected by Article 371 F of the Indian Constitution. This regulation allows the Sikkimese population to deposit any amount of money into their bank accounts without producing any KYC documents. They are also exempt&nbsp;from paying taxes if the income is generated within the state.&nbsp;

State Bank of Sikkim chairman K B Chamling, however, refuted all allegations in a conversion with WION.&nbsp;

However, following the demonetisation move by the Indian government on November 8, several accounts came under the scanner of the Income Tax department. A notice from the Income Tax Department, dated November 18, was sent to a resident of Sikkim enquiring about his deposits with the State Bank of Sikkim.&nbsp;Sources in the Income Tax Department told WION that they spotted non-Sikkimese individuals depositing their money into the accounts of Sikkimese customers of the bank and paying them huge sums of money as commission for helping them convert their illegal money into legitimate wealth.

An advisory issued by the Government of Sikkim, dated November 23, shows how the government &lsquo;cautioned&rsquo; the Sikkimese to not to allow non-Sikkimese to deposit money into their accounts as this is illegal and amounts to conversion of black money into white.&nbsp;

&ldquo;Soon after the demonetisation, suspicious activities in State Bank of Sikkim came to the fore. We started scanning several accounts and reached out to the bank. On November 15, we made it mandatory for all Sikkimese to produce valid documents when they deposit an amount of Rs 50,000 or above. We made the KYC mandatory after we realised some people were depositing their illegal money,&rdquo; said Norbu Bhutia, deputy director of income tax (investigations), Siliguri, West Bengal.&nbsp;

On the other hand, the Reserve Bank of India chief general manager P Vijaya Kumar has written to the Sikkim chief secretary suggesting that the State Bank of Sikkim be brought under the 1949 Act before March 31, 2017 to avoid any instances of illegal money conversion.&nbsp;

(WION)

State Bank of Sikkim is a treasury of the Sikkim Government and does not fall under Reserve Bank of India or any banking authority

DONT USE THIS STORY TILL CLEARANCE BY TATHA OR ANURADHA It is a unique Indian bank, with its own set of rules, not governed by Reserve Bank of India. In this bank, you can deposit your ill-earned money without any eyebrows raised; welcome to State Bank of Sikkim, which some people have branded as ‘The Swiss Bank of India’. In the "demonetised" Indian economy, State Bank of Sikkim has become a haven for black money hoarders across India for depositing their illegal money without paying any taxes or producing any KYC (know your customer) documents. State Bank of Sikkim is a treasury of the Sikkim Government and does not fall under the purview of Reserve Bank of India or any banking regulation. State Bank of Sikkim was established in 1968 under the Proclamation of Chogyal (erstwhile King of Sikkim) which is protected by Article 371 F of the Indian Constitution. This regulation allows the Sikkimese population to deposit any amount of money into their bank accounts without producing any KYC documents. They are also exempt from paying taxes if the income is generated within the state. State Bank of Sikkim chairman K B Chamling, however, refuted all allegations in a conversion with WION. However, following the demonetisation move by the Indian government on November 8, several accounts came under the scanner of the Income Tax department. A notice from the Income Tax Department, dated November 18, was sent to a resident of Sikkim enquiring about his deposits with the State Bank of Sikkim. Sources in the Income Tax Department told WION that they spotted non-Sikkimese individuals depositing their money into the accounts of Sikkimese customers of the bank and paying them huge sums of money as commission for helping them convert their illegal money into legitimate wealth. An advisory issued by the Government of Sikkim, dated November 23, shows how the government ‘cautioned’ the Sikkimese to not to allow non-Sikkimese to deposit money into their accounts as this is illegal and amounts to conversion of black money into white. “Soon after the demonetisation, suspicious activities in State Bank of Sikkim came to the fore. We started scanning several accounts and reached out to the bank. On November 15, we made it mandatory for all Sikkimese to produce valid documents when they deposit an amount of Rs 50,000 or above. We made the KYC mandatory after we realised some people were depositing their illegal money,” said Norbu Bhutia, deputy director of income tax (investigations), Siliguri, West Bengal. On the other hand, the Reserve Bank of India chief general manager P Vijaya Kumar has written to the Sikkim chief secretary suggesting that the State Bank of Sikkim be brought under the 1949 Act before March 31, 2017 to avoid any instances of illegal money conversion. (WION)

Income tax department finds India's own tax haven hidden in Sikkim

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