The Supreme Court &nbsp;will hear all matters pertaining to demonetisation of Rs 500 and Rs 1000 currency notes today (December 2).

The pleas will include the transfer petition filed by the Centre seeking stay on all the pending pleas against demonetisation, ANI reported.&nbsp;

The Centre had submitted an affidavit last week, telling the SC that the move is a step to unearth an illegal parallel economy.&nbsp;

&quot;Earlier, we constituted SIT to curb black money, amended Benami Act. The people might have to face some inconveniences. Re-calibration of ATMs is in full swing. Crores of fake currency notes have became useless. Funding of terror groups has been stopped,&quot; said the affidavit.

Attorney General Mukul Rohtagi told ANI&nbsp;that the Centre has&nbsp;filed a report in which it has told the court for the initiation of a Special Investigation Team (SIT) and addressing &nbsp;other issues that could be affected because of demonetisation.&nbsp;

General Rohatgi had earlier filed a transfer petition before the Supreme Court seeking a stay on all pending pleas against demonetisation.

The SC had earlier refused to put a stay on hearings in various High Courts and lower courts on the demonetisation process.&nbsp;

(WION with inputs from ANI)

Attorney General Mukul Rohtagi said Centre had filed a report starting from the initiation of SIT and all other issues caused by the move

The Supreme Court will hear all matters pertaining to demonetisation of Rs 500 and Rs 1000 currency notes today (December 2). The pleas will include the transfer petition filed by the Centre seeking stay on all the pending pleas against demonetisation, ANI reported. The Centre had submitted an affidavit last week, telling the SC that the move is a step to unearth an illegal parallel economy. "Earlier, we constituted SIT to curb black money, amended Benami Act. The people might have to face some inconveniences. Re-calibration of ATMs is in full swing. Crores of fake currency notes have became useless. Funding of terror groups has been stopped," said the affidavit. Attorney General Mukul Rohtagi told ANI that the Centre has filed a report in which it has told the court for the initiation of a Special Investigation Team (SIT) and addressing other issues that could be affected because of demonetisation. General Rohatgi had earlier filed a transfer petition before the Supreme Court seeking a stay on all pending pleas against demonetisation. The SC had earlier refused to put a stay on hearings in various High Courts and lower courts on the demonetisation process. (WION with inputs from ANI)

Indian Supreme Court to hear all pleas on demonetisation today

The meeting of various opposition parties on the Parliament premises on Friday concluded, with opposition leaders demanding Indian Prime Minister Narendra Modi&#39;s apology in the Rajya Sabha.

The opposition leaders, however, said they were ready for a discussion on the demonetisation issue in the Lok Sabha, but that must be&nbsp;followed by a vote. Bedlam in both Houses of Parliament continued even on Thursday with the Opposition demanding Prime Minister Narendra Modi&#39;s presence in the Rajya Sabha;&nbsp;a pre-condition to hold debate on the demonetisation issue.

Opposition MPs, especially the Congress, sought an apology referring to the Prime Minister&#39;s recent remarks defending the demonetisation. They alleged that Prime Minister has remarked that the opposition parties support black money hoarders, which was protested by BJP members, who stood up and protested against the opposition&#39;s contention of apology.

Meanwhile, accusing the Congress Party of stalling the proceedings in parliament for 16 days, parliamentary affairs minister Ananth Kumar on Friday appealed to the Congress and other opposition parties to rise above politics and get ready for a discussion in the House as the government is ready to answer their question.

&quot;I, once again, appeal to the Congress and other opposition parties to rise above politics and get ready for a discussion in the House as we are ready to answer. The Prime Minister will also intervene and answer. And, at the end, the finance minister will also give reply in both Houses,&quot; Ananth Kumar told ANI.

(ANI)&nbsp;

Bedlam in both Houses of Parliament continued even on Thursday with the Opposition demanding Modi's presence in the Rajya Sabha

The meeting of various opposition parties on the Parliament premises on Friday concluded, with opposition leaders demanding Indian Prime Minister Narendra Modi's apology in the Rajya Sabha. The opposition leaders, however, said they were ready for a discussion on the demonetisation issue in the Lok Sabha, but that must be followed by a vote. Bedlam in both Houses of Parliament continued even on Thursday with the Opposition demanding Prime Minister Narendra Modi's presence in the Rajya Sabha; a pre-condition to hold debate on the demonetisation issue. Opposition MPs, especially the Congress, sought an apology referring to the Prime Minister's recent remarks defending the demonetisation. They alleged that Prime Minister has remarked that the opposition parties support black money hoarders, which was protested by BJP members, who stood up and protested against the opposition's contention of apology. Meanwhile, accusing the Congress Party of stalling the proceedings in parliament for 16 days, parliamentary affairs minister Ananth Kumar on Friday appealed to the Congress and other opposition parties to rise above politics and get ready for a discussion in the House as the government is ready to answer their question. "I, once again, appeal to the Congress and other opposition parties to rise above politics and get ready for a discussion in the House as we are ready to answer. The Prime Minister will also intervene and answer. And, at the end, the finance minister will also give reply in both Houses," Ananth Kumar told ANI. (ANI)

Demonetisation: Opposition demands Prime Minister's apology, ready for debate in lower house if it comes with voting

Indian finance minister Arun Jaitley today repudiated a call by the state government of India&#39;s West Bengal to delay a planned Goods and Services Tax (GST) to avoid inflicting another economic shock in the wake of demonetisation.

He said the plan was still to launch the new tax on April 1. Time was tight because, under a constitutional amendment that enabled the GST, India&#39;s old system of indirect taxation would lapse next September.

&quot;If on September 16, 2017, there&#39;s no GST, then there&#39;s no taxation,&quot; he said. &quot;Our intention is to make sure it gets implemented from April 1, 2017.&quot;

Jaitley also said on Friday that a cash crunch following the scrapping of high-value banknotes would ease by December&nbsp;30 with the release of new 500 and 2,000 rupee notes.

Jaitley said, however, that the amount of new banknotes being released would not be the same as that circulating before November&nbsp;8, when Prime Minister Narendra Modi announced the so-called demonetisation to purge the economy of illicit &quot;black money&quot;.

Modi, at a stroke, removed from circulation banknotes worth an estimated 17 trillion rupees ($249 billion). Finance ministry sources say they plan to reissue just over half of this - a task that would take months given the capacity of India&#39;s four banknote printing presses.

Modi set a 50-day deadline that runs to December&nbsp;30 for people to swap or deposit their old banknotes. He has promised the situation would stabilise by then and urged Indians to adopt cashless payment forms such as debit cards and mobile wallets.

&quot;Obviously, one of the advantages of this exercise is going to be that you won&#39;t have the same level of paper currency which existed,&quot; Jaitley told the Hindustan Times Leadership Summit.

(Reuters)

Jaitley repudiated a call by the Bengal government to delay the GST to avoid inflicting another economic shock

Indian finance minister Arun Jaitley today repudiated a call by the state government of India's West Bengal to delay a planned Goods and Services Tax (GST) to avoid inflicting another economic shock in the wake of demonetisation. He said the plan was still to launch the new tax on April 1. Time was tight because, under a constitutional amendment that enabled the GST, India's old system of indirect taxation would lapse next September. "If on September 16, 2017, there's no GST, then there's no taxation," he said. "Our intention is to make sure it gets implemented from April 1, 2017." Jaitley also said on Friday that a cash crunch following the scrapping of high-value banknotes would ease by December 30 with the release of new 500 and 2,000 rupee notes. Jaitley said, however, that the amount of new banknotes being released would not be the same as that circulating before November 8, when Prime Minister Narendra Modi announced the so-called demonetisation to purge the economy of illicit "black money". Modi, at a stroke, removed from circulation banknotes worth an estimated 17 trillion rupees ($249 billion). Finance ministry sources say they plan to reissue just over half of this - a task that would take months given the capacity of India's four banknote printing presses. Modi set a 50-day deadline that runs to December 30 for people to swap or deposit their old banknotes. He has promised the situation would stabilise by then and urged Indians to adopt cashless payment forms such as debit cards and mobile wallets. "Obviously, one of the advantages of this exercise is going to be that you won't have the same level of paper currency which existed," Jaitley told the Hindustan Times Leadership Summit. (Reuters)

Constitutional compulsion to roll out GST from September 2017: Indian finance minister

Young working professionals to pensioners, a large number of people queued up at banks across the country on the first pay day after the government announced its demonetisation move.&nbsp;

Even three weeks after the decision, people continued to face a cash crunch with many ATMs displaying &#39;No Cash&#39; notice.&nbsp;

Top government officials say special efforts are being made to pump in additional cash into banks to meet the heavy demand for currency notes on account of salary withdrawal.

The Reserve Bank has been asked to ensure adequate supply of new Rs 500 notes at banks.&nbsp;

The country&#39;s currency printing presses have been working overtime but there is still a lag of 21 days for notes to reach the market.&nbsp;

Queues at the banks were relatively longer as many people wished to withdraw the maximum amount for their family expenses over the next few days.

&quot;Our bank accounts are refilled but our pockets are mostly empty. Let&#39;s see if we have some luck,&quot; a young IT employee said outside an ATM outlet in Salt Lake, Kolkata&#39;s IT hub.

&quot;Withdrawal at ATM is limited. I need bigger amount to run my family expenses. That`s why I am planning to withdraw Rs 24.000 from the bank,&quot; said another man standing in a queue at a nationalised bank since 7.30 am.

In Kerala, finance minister Thomas Issac said the government employees and pensioners will be able to withdraw only Rs 24,000 cash a week.&nbsp;

He said the government staff and pensioners will have to move bank or treasury in person as sufficient notes were not available for disbursement of complete salaries.&nbsp;

&quot;The banks have no cash and it is very clear. And, there is no way that they are going to get sufficient cash to pay the full salary. Therefore, the understanding is that the salary and pension will be limited to 24,000 rupees for one time withdrawal. So, over five lakh people are drawing pension from treasury and from banks. They will have to go to their prospective banks and treasury, especially to withdraw money,&quot; he said.

He added that there were around 10 lakh employees and pensioners in the state and more than half of them drew their salaries through banks 4.5 lakh through treasury accounts and the rest about 50,000 in cash.

(WION with inputs from agencies)&nbsp; 
&nbsp;

Long queues were seen outside banks across the country as many ATMs remain non-functional on the first pay day since demonetisation

Young working professionals to pensioners, a large number of people queued up at banks across the country on the first pay day after the government announced its demonetisation move. Even three weeks after the decision, people continued to face a cash crunch with many ATMs displaying 'No Cash' notice. Top government officials say special efforts are being made to pump in additional cash into banks to meet the heavy demand for currency notes on account of salary withdrawal. The Reserve Bank has been asked to ensure adequate supply of new Rs 500 notes at banks. The country's currency printing presses have been working overtime but there is still a lag of 21 days for notes to reach the market. Queues at the banks were relatively longer as many people wished to withdraw the maximum amount for their family expenses over the next few days. "Our bank accounts are refilled but our pockets are mostly empty. Let's see if we have some luck," a young IT employee said outside an ATM outlet in Salt Lake, Kolkata's IT hub. "Withdrawal at ATM is limited. I need bigger amount to run my family expenses. That`s why I am planning to withdraw Rs 24.000 from the bank," said another man standing in a queue at a nationalised bank since 7.30 am. In Kerala, finance minister Thomas Issac said the government employees and pensioners will be able to withdraw only Rs 24,000 cash a week. He said the government staff and pensioners will have to move bank or treasury in person as sufficient notes were not available for disbursement of complete salaries. "The banks have no cash and it is very clear. And, there is no way that they are going to get sufficient cash to pay the full salary. Therefore, the understanding is that the salary and pension will be limited to 24,000 rupees for one time withdrawal. So, over five lakh people are drawing pension from treasury and from banks. They will have to go to their prospective banks and treasury, especially to withdraw money," he said. He added that there were around 10 lakh employees and pensioners in the state and more than half of them drew their salaries through banks 4.5 lakh through treasury accounts and the rest about 50,000 in cash. (WION with inputs from agencies)

Demonetisation: Banks see big rush on pay day, many ATMs still dry

As the cash crunch at bank branches across India continues to persist, the Indian government has further scaled up the printing of new 500 rupee notes, The Times of India reports.

Four currency printing presses --&nbsp;two owned by Reserve Bank of India at Mysuru and Salboni&nbsp;and two government-owned ones at Nashik and Devas, which were operating two shifts --&nbsp;have now started working three shifts, sources told The Times of India.&nbsp;

The focus now is on augmenting the supply of Rs 500 notes, the sources said.

&quot;Supply to other banks will definitely improve. We are airlifting 500 rupee notes. There will be some pressure initially but in the next few days it will ease,&quot; a government source told TOI.

With the RBI increasing the supply of cash, the position in bank branches and ATMs of large lenders is expected to improve substantially on Thursday.&nbsp;

Banks will be using the money to make available funds in centres where they have a&nbsp;large number of salary accounts, TOI said in its report.

ATMs loaded with Rs 100 notes run out of money quickly because the machines only have space to hold&nbsp;so many notes,&nbsp;so&nbsp;100 notes are the least efficient way to dispense cash.

However the Rs 2000 notes&nbsp;were seldom accepted because so few vendors or stores have enough Rs 100 notes to provide the necessary&nbsp;change.

Inserting Rs 500 notes into circulation should help&nbsp;ease the situation further.

(WION)

Sources told the Times of India that four different currency printing presses have gone from operating in two shifts to three

As the cash crunch at bank branches across India continues to persist, the Indian government has further scaled up the printing of new 500 rupee notes, The Times of India reports. Four currency printing presses -- two owned by Reserve Bank of India at Mysuru and Salboni and two government-owned ones at Nashik and Devas, which were operating two shifts -- have now started working three shifts, sources told The Times of India. The focus now is on augmenting the supply of Rs 500 notes, the sources said. "Supply to other banks will definitely improve. We are airlifting 500 rupee notes. There will be some pressure initially but in the next few days it will ease," a government source told TOI. With the RBI increasing the supply of cash, the position in bank branches and ATMs of large lenders is expected to improve substantially on Thursday. Banks will be using the money to make available funds in centres where they have a large number of salary accounts, TOI said in its report. ATMs loaded with Rs 100 notes run out of money quickly because the machines only have space to hold so many notes, so 100 notes are the least efficient way to dispense cash. However the Rs 2000 notes were seldom accepted because so few vendors or stores have enough Rs 100 notes to provide the necessary change. Inserting Rs 500 notes into circulation should help ease the situation further. (WION)

Demonetisation: Indian government scales up printing of 500 rupee notes in bid to ease cash crunch

In the biggest seizure of cash in new currency since demonetisation, India&#39;s Income Tax department today confiscated over Rs 4 crore during searches in a dozen premises in Bengaluru and other locations.

Officials said the searches were launched on the premises of two engineers, working with the state government, and some &quot;connected persons&quot;.

A team of over 50 I-T sleuths and police personnel launched operations early morning and searched premises in Bengaluru, Chennai and Erode (Tamil Nadu).

&quot;During the course of searches Rs 4.7 crore cash in new denominations of Rs 2000 and 0.3 crore in old/smaller denominations totalling Rs 5 crore and 7 kg bullion worth approximately Rs 2 crore were found in a flat owned by a civil contractor.

&quot;The new notes and bullion are learnt to have been obtained by exchange of demonetised notes by payment of commission of an engineer and a contractor,&quot; the Central Board of Direct Taxes (CBDT), the policy-making body of the tax department, said in a statement here.

The sleuths also seized some notes of Rs 100, demonetised notes of Rs 500 and a few gold biscuits during the operation, it said, adding the department had to call in note counting machines and additional staff to ascertain the value of the cash.

What has surprised the tax authorities is the sheer amount of new currency stashed by these individuals at a time when new notes are not available to the public which is queueing up to withdraw even small amounts from their accounts.

&quot;This is the highest seizure of the new currency in the country post the currency ban on November 8. Some entry operators and bankers in Karnataka and Tamil Nadu are under the scanner. Such volume of new currency cannot be obtained without connivance of bank officials,&quot; a senior I-T department official said.

The department has also found a number of identity cards of various individuals from the searched premises which could have been used to illegally change the old currency with new ones.

Taxman has also seized documents of property purchase from the premises, even as they found a battery of luxury cars parked in these locations.

&quot;The investigation is still in progress and the search action is still continuing in ten premises,&quot; the CBDT statement added. 
Only yesterday, the Enforcement Directorate (ED) had seized Rs 10 lakh cash in new notes of Rs 2000 from the premises of a Kolkata-based doctor.

The agency conducted nationwide search operations yesterday at 40 locations and seized about Rs 1 crore in new notes.

Both the I-T department and the ED, along with other enforcement agencies and police, are undertaking these operations after reports of instances of illegal exchange of old currency and stashing of new currency notes to perpetrate hawala and money laundering like activities. 
 
(PTI) 
&nbsp;

The income tax department also conducted nationwide search operations yesterday at 40 locations and seized about Rs 1 crore in new notes

In the biggest seizure of cash in new currency since demonetisation, India's Income Tax department today confiscated over Rs 4 crore during searches in a dozen premises in Bengaluru and other locations. Officials said the searches were launched on the premises of two engineers, working with the state government, and some "connected persons". A team of over 50 I-T sleuths and police personnel launched operations early morning and searched premises in Bengaluru, Chennai and Erode (Tamil Nadu). "During the course of searches Rs 4.7 crore cash in new denominations of Rs 2000 and 0.3 crore in old/smaller denominations totalling Rs 5 crore and 7 kg bullion worth approximately Rs 2 crore were found in a flat owned by a civil contractor. "The new notes and bullion are learnt to have been obtained by exchange of demonetised notes by payment of commission of an engineer and a contractor," the Central Board of Direct Taxes (CBDT), the policy-making body of the tax department, said in a statement here. The sleuths also seized some notes of Rs 100, demonetised notes of Rs 500 and a few gold biscuits during the operation, it said, adding the department had to call in note counting machines and additional staff to ascertain the value of the cash. What has surprised the tax authorities is the sheer amount of new currency stashed by these individuals at a time when new notes are not available to the public which is queueing up to withdraw even small amounts from their accounts. "This is the highest seizure of the new currency in the country post the currency ban on November 8. Some entry operators and bankers in Karnataka and Tamil Nadu are under the scanner. Such volume of new currency cannot be obtained without connivance of bank officials," a senior I-T department official said. The department has also found a number of identity cards of various individuals from the searched premises which could have been used to illegally change the old currency with new ones. Taxman has also seized documents of property purchase from the premises, even as they found a battery of luxury cars parked in these locations. "The investigation is still in progress and the search action is still continuing in ten premises," the CBDT statement added. Only yesterday, the Enforcement Directorate (ED) had seized Rs 10 lakh cash in new notes of Rs 2000 from the premises of a Kolkata-based doctor. The agency conducted nationwide search operations yesterday at 40 locations and seized about Rs 1 crore in new notes. Both the I-T department and the ED, along with other enforcement agencies and police, are undertaking these operations after reports of instances of illegal exchange of old currency and stashing of new currency notes to perpetrate hawala and money laundering like activities. (PTI)

Demonetisation: Taxman seizes Rs 4 crore of new denomination notes

The National Highway Authority of India would suffer an income loss of Rs 1,238 crore due to suspension of toll collection on highways till December 2 post demonetisation, Parliament was informed today.

Post demonetisation of currency notes of Rs 500 and Rs 1000, government has suspended user fee collection on National Highways with effect from November 9, 2016 (17:30 hrs), Minister of State for Road Transport and Highways P Radhakrishnan said in a written reply to Lok Sabha.

NHAI issued necessary instructions to concessionaries, including BOT, OMT operators, and the commuters have been allowed to travel through the user fee plazas without paying any fee from November 9, 2016 (17:30 hrs) to December 2 (midnight), he added.

&quot;The average toll collection per day is Rs 51.59 crore from the fee plazas under NHAI, which is not accruing to the Government with effect from November 9, 2016 (17:30 hrs),&quot; the Minister informed the House.

Taking into account exemption till December 2 (midnight), the income loss to NHAI due to suspension of toll collection on highways is to be around Rs 1,238 crore (USD 181 million).

In a separate reply, Radhakrishnan said: &quot;Government will suitably compensate the toll operators for loss incurred due to suspension of fee collection.&quot;

The decision was taken to ensure smooth traffic flow across all National Highways and provide relief to the cash-strapped people lining up outside banks and ATMs after Rs 500 and Rs 1,000 notes were scrapped.

The government had announced its decision to keep the toll collection in abeyance till November 11 mid-night, which was later extended to November 14, 18, 24 and later to December 2.

(PTI)

Post demonetisation of currency notes of Rs 500 and Rs 1000, government has suspended user fee collection on national highways

The National Highway Authority of India would suffer an income loss of Rs 1,238 crore due to suspension of toll collection on highways till December 2 post demonetisation, Parliament was informed today. Post demonetisation of currency notes of Rs 500 and Rs 1000, government has suspended user fee collection on National Highways with effect from November 9, 2016 (17:30 hrs), Minister of State for Road Transport and Highways P Radhakrishnan said in a written reply to Lok Sabha. NHAI issued necessary instructions to concessionaries, including BOT, OMT operators, and the commuters have been allowed to travel through the user fee plazas without paying any fee from November 9, 2016 (17:30 hrs) to December 2 (midnight), he added. "The average toll collection per day is Rs 51.59 crore from the fee plazas under NHAI, which is not accruing to the Government with effect from November 9, 2016 (17:30 hrs)," the Minister informed the House. Taking into account exemption till December 2 (midnight), the income loss to NHAI due to suspension of toll collection on highways is to be around Rs 1,238 crore (USD 181 million). In a separate reply, Radhakrishnan said: "Government will suitably compensate the toll operators for loss incurred due to suspension of fee collection." The decision was taken to ensure smooth traffic flow across all National Highways and provide relief to the cash-strapped people lining up outside banks and ATMs after Rs 500 and Rs 1,000 notes were scrapped. The government had announced its decision to keep the toll collection in abeyance till November 11 mid-night, which was later extended to November 14, 18, 24 and later to December 2. (PTI)

Demonetisation: India's highways authority forgoes toll worth $181 million

The Reserve Bank of India has imposed withdrawal limits on Jan Dhan accounts held by farmers and the rural population, to avoid misuse of funds.

In the wake of the demonetisation move, Jan Dhan accounts under the Pradhan Mantri Jan Dhan Yojna (PMJDY), saw a flurry of deposits, many to the extent of Rs 49,000 (up to Rs 50,000 can be deposited without raising red flags in the income tax department). It was noticed by the government that the bank accounts of the rural population, many of which had remained zero balance accounts till the decommissioning of Rs 500 and Rs 1000 notes to check black money hoarders, had seen a sudden surge in deposits.

While the government had set a December 30 deadline to deposit or exchange the now-discontinued Rs 500 and Rs 1,000 notes, there was a Rs 2.5 lakh deposit limit after which an inquiry from the IT department would be on the anvil. It was suspected that many black money hoarders used the Jan Dhan accounts to deposit, and hence convert their money safely.

According to government data, deposits in Jan Dhan accounts rose to Rs 21,000 crore in days after the demonetisation move. According to a November 25 report by PTI, deposits in these accounts had climbed to Rs 64,250 crore.

For this, the RBI, in a circular on Wednesday, said, &quot;With a view to protect the innocent farmers and rural account holders of PMJDY from activities of money launders and legal consequences under the Benami Property Transaction &amp; Money Laundering laws, it has been decided to place certain limits, as a matter of precaution, on the operations in the PMJDY accounts funded through deposits of Specified Bank Notes (SBNs) after November 09, 2016.&quot;

In what is being called a temporary measure currently, the RBI has advised banks to allow withdrawals under the following conditions

I) Fully KYC compliant account holders may be allowed to withdraw Rs 10,000/- from their account, in a month. The branch managers may allow further withdrawals beyond Rs 10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank&rsquo;s record.

II) Limited or Non-KYC compliant account holders may be allowed to withdraw Rs 5,000 per month from the amount deposited through SBNs after November 09, 2016 within the overall ceiling of Rs 10,000.

Speaking about the spike in deposits in the Jan Dhan accounts in the aftermath of the demonetisation move, Finance Minister Arun Jaitley had said, &quot;We are getting some complaints that suddenly monies have popped up in the Jan Dhan accounts, so there is a misuse and that is why the rationing in initial days takes place.&quot; He had cautioned that the departments concerned will act if anything improper is found in the deposits.

(This report&nbsp;first appeared in DNA)

The accounts have seen a flurry of deposits since PM Modi made his surprise announcement on Nov 8

The Reserve Bank of India has imposed withdrawal limits on Jan Dhan accounts held by farmers and the rural population, to avoid misuse of funds. In the wake of the demonetisation move, Jan Dhan accounts under the Pradhan Mantri Jan Dhan Yojna (PMJDY), saw a flurry of deposits, many to the extent of Rs 49,000 (up to Rs 50,000 can be deposited without raising red flags in the income tax department). It was noticed by the government that the bank accounts of the rural population, many of which had remained zero balance accounts till the decommissioning of Rs 500 and Rs 1000 notes to check black money hoarders, had seen a sudden surge in deposits. While the government had set a December 30 deadline to deposit or exchange the now-discontinued Rs 500 and Rs 1,000 notes, there was a Rs 2.5 lakh deposit limit after which an inquiry from the IT department would be on the anvil. It was suspected that many black money hoarders used the Jan Dhan accounts to deposit, and hence convert their money safely. According to government data, deposits in Jan Dhan accounts rose to Rs 21,000 crore in days after the demonetisation move. According to a November 25 report by PTI, deposits in these accounts had climbed to Rs 64,250 crore. For this, the RBI, in a circular on Wednesday, said, "With a view to protect the innocent farmers and rural account holders of PMJDY from activities of money launders and legal consequences under the Benami Property Transaction & Money Laundering laws, it has been decided to place certain limits, as a matter of precaution, on the operations in the PMJDY accounts funded through deposits of Specified Bank Notes (SBNs) after November 09, 2016." In what is being called a temporary measure currently, the RBI has advised banks to allow withdrawals under the following conditions I) Fully KYC compliant account holders may be allowed to withdraw Rs 10,000/- from their account, in a month. The branch managers may allow further withdrawals beyond Rs 10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank’s record. II) Limited or Non-KYC compliant account holders may be allowed to withdraw Rs 5,000 per month from the amount deposited through SBNs after November 09, 2016 within the overall ceiling of Rs 10,000. Speaking about the spike in deposits in the Jan Dhan accounts in the aftermath of the demonetisation move, Finance Minister Arun Jaitley had said, "We are getting some complaints that suddenly monies have popped up in the Jan Dhan accounts, so there is a misuse and that is why the rationing in initial days takes place." He had cautioned that the departments concerned will act if anything improper is found in the deposits. (This report first appeared in DNA)

Demonetisation: RBI says only Rs 10,000 a month can be taken out of Jan Dhan accounts

India can ill-afford to take much pride in having the world&#39;s fastest growing large economy when it releases September quarter data on Wednesday, with businesses, farmers and families all suffering after the government&#39;s sudden demonetization drive.

Having taken credit for putting life back in a moribund economy when he took power 2-1/2 years ago, Prime Minister Narendra Modi&#39;s crackdown on tax dodgers and counterfeiters by removing 500 rupee and 1,000 rupee banknotes from circulation has taken the economy down a very bumpy road.

How bumpy depends who&#39;s talking, but almost everyone agrees the drag on growth is likely to last through next year.

&quot;The move will weigh on Gross Domestic Product (GDP) growth for a few quarters, dampening government revenues,&quot; warned credit ratings firm Moody&#39;s Investors Service. &quot;The decline in economic activity will lower corporate sales volumes and cash flows.&quot;

The quarterly gross domestic product data released on Wednesday won&#39;t show the ill-effects. July-September will be the last quarter before the impact is felt from Modi&#39;s bold and risky move this month to force people to deposit their hidden cash in banks, making it easy for the taxman to see.

The median estimate from a Reuters poll showed economists expect economic growth accelerated to 7.5 per cent in the September quarter from 7.1 per cent in the June quarter.

That&#39;s not as fast as the 7.9 per cent posted in the March quarter, but it had recovered momentum, and might have gone higher until Modi launched his attack on the so-called &quot;black economy&quot;.

While Modi has been praised for his intentions, people are wringing their hands over the cost of taking 86 per cent of the country&#39;s banknotes out of circulation virtually overnight.

The most optimistic forecasts suggest that India will finish this fiscal year in March with a respectable, but slightly lower growth rate of 7.3 per cent.

But the most pessimistic forecast, from Mumbai-based brokerage Ambit Capital, for a precipitous drop to 3.5 per cent growth shows just how worried people are. 
&nbsp;

Knock-on effects

With a small stock of smaller notes available and new bills of 500 and 2,000 rupee in short supply, Indians had to stand in snaking queues outside banks and cash machines to change their old notes.

The better off may have more money to change, but for the mass of Indians living on the margins the disruption and loss of earnings has caused real hardship.

Modi expects the cash situation to become normal by end-December, but critics say he is being over-optimistic.

Meantime, consumers are spending less, which is hurting small producers who, in turn, are being forced to scale back their activities.

As a consequence, supply chains at small, medium and even larger companies are breaking down. Trucks are stranded with no money for fuel, workers won&#39;t load goods for free, and distributors can&#39;t pay up. Wholesale markets in many cities are shut.

The cash crunch has jeopardised production of key commodities and hurt rural communities - just recovering after two years of drought - as farmers lack cash to buy seeds and fertiliser. As a result, the area under cultivation for India&#39;s winter crop has declined.

CMIE, an economic think tank, reckons the big banknote swap would cost at least $19 billion by the end of 2016 in foregone wages, lost business, and higher administrative expenses alone.

The liquidity shortage will retard efforts to revive private investment that has been plagued by weak external demand and a slow recovery in domestic demand.

And, despite the high economic growth rates seen over the past year-and-a-half, factories&#39; capacity utilization ratio remains stuck near their lowest level since 2009.

&quot;Given that the growth recovery has still not taken full hold, the impact of this demonetisation ... could delay the private corporate capex recovery,&quot; analysts at Morgan Stanley wrote in a note, adding that they don&#39;t expect that recovery to happen before 2018.

At least the potential for lower inflation holds out some hope that the Reserve Bank of India will extend its easing cycle with a quick interest rate cut.

&quot;The central bank might prefer to bring forward the rate cut to December to support growth and tap the favourable inflation outlook,&quot; said Radhika Rao, an economist with DBS Bank.

(Reuters)

The country will release September quarter data on Wednesday

India can ill-afford to take much pride in having the world's fastest growing large economy when it releases September quarter data on Wednesday, with businesses, farmers and families all suffering after the government's sudden demonetization drive. Having taken credit for putting life back in a moribund economy when he took power 2-1/2 years ago, Prime Minister Narendra Modi's crackdown on tax dodgers and counterfeiters by removing 500 rupee and 1,000 rupee banknotes from circulation has taken the economy down a very bumpy road. How bumpy depends who's talking, but almost everyone agrees the drag on growth is likely to last through next year. "The move will weigh on Gross Domestic Product (GDP) growth for a few quarters, dampening government revenues," warned credit ratings firm Moody's Investors Service. "The decline in economic activity will lower corporate sales volumes and cash flows." The quarterly gross domestic product data released on Wednesday won't show the ill-effects. July-September will be the last quarter before the impact is felt from Modi's bold and risky move this month to force people to deposit their hidden cash in banks, making it easy for the taxman to see. The median estimate from a Reuters poll showed economists expect economic growth accelerated to 7.5 per cent in the September quarter from 7.1 per cent in the June quarter. That's not as fast as the 7.9 per cent posted in the March quarter, but it had recovered momentum, and might have gone higher until Modi launched his attack on the so-called "black economy". While Modi has been praised for his intentions, people are wringing their hands over the cost of taking 86 per cent of the country's banknotes out of circulation virtually overnight. The most optimistic forecasts suggest that India will finish this fiscal year in March with a respectable, but slightly lower growth rate of 7.3 per cent. But the most pessimistic forecast, from Mumbai-based brokerage Ambit Capital, for a precipitous drop to 3.5 per cent growth shows just how worried people are. Knock-on effects With a small stock of smaller notes available and new bills of 500 and 2,000 rupee in short supply, Indians had to stand in snaking queues outside banks and cash machines to change their old notes. The better off may have more money to change, but for the mass of Indians living on the margins the disruption and loss of earnings has caused real hardship. Modi expects the cash situation to become normal by end-December, but critics say he is being over-optimistic. Meantime, consumers are spending less, which is hurting small producers who, in turn, are being forced to scale back their activities. As a consequence, supply chains at small, medium and even larger companies are breaking down. Trucks are stranded with no money for fuel, workers won't load goods for free, and distributors can't pay up. Wholesale markets in many cities are shut. The cash crunch has jeopardised production of key commodities and hurt rural communities - just recovering after two years of drought - as farmers lack cash to buy seeds and fertiliser. As a result, the area under cultivation for India's winter crop has declined. CMIE, an economic think tank, reckons the big banknote swap would cost at least $19 billion by the end of 2016 in foregone wages, lost business, and higher administrative expenses alone. The liquidity shortage will retard efforts to revive private investment that has been plagued by weak external demand and a slow recovery in domestic demand. And, despite the high economic growth rates seen over the past year-and-a-half, factories' capacity utilization ratio remains stuck near their lowest level since 2009. "Given that the growth recovery has still not taken full hold, the impact of this demonetisation ... could delay the private corporate capex recovery," analysts at Morgan Stanley wrote in a note, adding that they don't expect that recovery to happen before 2018. At least the potential for lower inflation holds out some hope that the Reserve Bank of India will extend its easing cycle with a quick interest rate cut. "The central bank might prefer to bring forward the rate cut to December to support growth and tap the favourable inflation outlook," said Radhika Rao, an economist with DBS Bank. (Reuters)

Chilled by demonetisation, India to take cold comfort from strong GDP

The demonetisation move announced in India on November 8 may have long-term benefits, but in the short term it is costing the Indian economy billions of dollars.

According to the data released by the Centre for Monitoring Indian Economy (CMIE), the cost of people standing in a queue to change old currency notes with new ones or to deposit old currency notes into banks or to get new currency notes for use is $2.2 billion (INR 150 billion).This cost includes the expenditure on photocopying of identity proofs required for the transactions. It does not include any other incidental cost such as travel, etc.

India&#39;s black economy has been as large as 23% of India&#39;s GDP, which is about $2.384 trillion.

Corruption in India has been rampant and India was ranked 76th in Transparency International&#39;s corruption index last year. This move at demonetisation aims to clean out the black economy and curtail corruption.

<div class="ui-state-default" contenteditable="false"><img alt="" draggable="false" src="http://s.wionews.com/photos/demonetisation-infographic--20161129104921.jpg" />
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An infographic that explains the cost of queues to exchange currency. (WION)
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&nbsp;

Queues outside banks mean that an estimated 458 million work days are lost during the 50-day period for exchanging currency, depositing cash

The demonetisation move announced in India on November 8 may have long-term benefits, but in the short term it is costing the Indian economy billions of dollars. According to the data released by the Centre for Monitoring Indian Economy (CMIE), the cost of people standing in a queue to change old currency notes with new ones or to deposit old currency notes into banks or to get new currency notes for use is $2.2 billion (INR 150 billion).This cost includes the expenditure on photocopying of identity proofs required for the transactions. It does not include any other incidental cost such as travel, etc. India's black economy has been as large as 23% of India's GDP, which is about $2.384 trillion. Corruption in India has been rampant and India was ranked 76th in Transparency International's corruption index last year. This move at demonetisation aims to clean out the black economy and curtail corruption. An infographic that explains the cost of queues to exchange currency. (WION) ×

Demonetisation: Economic cost of cleaning black money explained

India remained the fastest growing major economy with its GDP accelerating to 7.3 per cent in the September quarter, pushed mainly by farm output, although the momentum may be hit in the coming months by the impact of demonetisation.

The Gross Domestic Product (GDP) or national income which rose from 7.1 per cent in the previous quarter is, however, lower than 7.6 per cent recorded in the same period last year.

India overtook China in economic growth rate in 2015, and continues to be the world&#39;s fastest growing large economy.

Meanwhile, monthly macro-economic data on performance of eight infrastructure sectors showed six-month high growth of 6.6 per cent in October.

According to the data released today by the Central Statistics Office (CSO), the Gross Value Added (GVA), which is estimated at the basic price, growth decelerated to 7.1 per cent as compared 7.3 per cent both in the previous as well as the year ago period.

The data revealed that over 7 per cent growth was recorded by &#39;public administration, defence and other services&#39;, &#39;financial, insurance, real estate and professional services&#39;, &#39;manufacturing&#39; and &#39;trade, hotels and transport and communication and services related to broadcasting&#39;.

Growth rates in agriculture, forestry and fishing; mining and quarrying; electricity, gas, water supply and other utility services; and construction were at 3.3 per cent, (-)1.5 per cent, 3.5 per cent and 3.5 per cent respectively. This compares with 2 per cent, 5 per cent, 7.5 per cent and 0.8 per cent year ago period.

Manufacturing slowed to 7.1 per cent from 9.2 per cent in the year-ago period. On the impact of demonetisation of old Rs 500/1000 notes on growth prospects, Chief Statistician T C A Anant said statements made by experts on the adverse impact of demonetisation is made without any data.

&quot;People make assumptions and based on that they make statements. Once the data comes in, I will make a statement,&quot; he said at a press conference.

Chief Economic Adviser Arvind Subramanian said: &quot;What we have for first half are actual numbers. It shows good consistent performance. For second half we will have to see, there are a lot of uncertainties. We have to analyse it before we say something&quot;.

What is worrying, however, is the decline in Gross Fixed Capital Formation (GFCF) an indicator of investment.

GFCF growth rates at current and constant prices are estimated at (-)3.2 per cent and (-)5.6 per cent during Q2 of 2016-17 as compared to 7.5 per cent and 9.7 per cent during Q2 of 2015-16.&nbsp;

Talking about challenges, Subramanian said investment was down substantially in the second quarter and that is something that needs to be watched.

Referring to the impact of demonetisation of 500 and 1000 rupee notes by the government earlier this month, CII Director General Chandrajit Banerjee said that it would be a &quot;temporary setback&quot; to growth in the coming quarter.

As per CSO, GDP at constant (2011-12) prices in the second quarter of 2016-17 is estimated at Rs 29.63 lakh crore, as against Rs 27.62 lakh crore in the year-ago period.

The quarterly GVA at basic price at constant (2011-12) prices for July-September is estimated at Rs 27.33 lakh crore, as against Rs 25.52 lakh crore year-on-year.

Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 5.15 lakh crore for the second quarter as against Rs 4.27 lakh crore year ago.

At constant (2011-2012) prices, the GFCE is estimated at Rs 3.84 lakh crore as against Rs 3.33 lakh crore.

In terms of GDP, the rates of GFCE at current and constant prices during the second quarter are estimated at 14.1 per cent and 13 per cent respectively, as against the corresponding rate of 13.1 per cent and 12.1 per cent in the same period of 2015-16.

Chief Statistician Anant also informed that the &#39;advance estimates&#39; for national accounts data for the current fiscal will be released on January 7, a month in advance.

The data release date is being advanced as government would be presenting the annual budget a month ahead of the usual practice of unveiling it on last working day of February.

The data on eight core infrastructure sectors recorded a growth rate of 6.6 per cent in October on the back of impressive performance by steel and refinery products.

However, growth rate of power generation, fertiliser production and cement output fell considerably on a year-on-year basis. Coal production continued to fall for the third straight month.

The core infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- showed 3.8 per cent in October last year.

Core sector contributes 38 per cent to the total industrial production. 
 
(PTI)

The GDP was, however, lower than 7.6 per cent recorded in the same period last year.

India remained the fastest growing major economy with its GDP accelerating to 7.3 per cent in the September quarter, pushed mainly by farm output, although the momentum may be hit in the coming months by the impact of demonetisation. The Gross Domestic Product (GDP) or national income which rose from 7.1 per cent in the previous quarter is, however, lower than 7.6 per cent recorded in the same period last year. India overtook China in economic growth rate in 2015, and continues to be the world's fastest growing large economy. Meanwhile, monthly macro-economic data on performance of eight infrastructure sectors showed six-month high growth of 6.6 per cent in October. According to the data released today by the Central Statistics Office (CSO), the Gross Value Added (GVA), which is estimated at the basic price, growth decelerated to 7.1 per cent as compared 7.3 per cent both in the previous as well as the year ago period. The data revealed that over 7 per cent growth was recorded by 'public administration, defence and other services', 'financial, insurance, real estate and professional services', 'manufacturing' and 'trade, hotels and transport and communication and services related to broadcasting'. Growth rates in agriculture, forestry and fishing; mining and quarrying; electricity, gas, water supply and other utility services; and construction were at 3.3 per cent, (-)1.5 per cent, 3.5 per cent and 3.5 per cent respectively. This compares with 2 per cent, 5 per cent, 7.5 per cent and 0.8 per cent year ago period. Manufacturing slowed to 7.1 per cent from 9.2 per cent in the year-ago period. On the impact of demonetisation of old Rs 500/1000 notes on growth prospects, Chief Statistician T C A Anant said statements made by experts on the adverse impact of demonetisation is made without any data. "People make assumptions and based on that they make statements. Once the data comes in, I will make a statement," he said at a press conference. Chief Economic Adviser Arvind Subramanian said: "What we have for first half are actual numbers. It shows good consistent performance. For second half we will have to see, there are a lot of uncertainties. We have to analyse it before we say something". What is worrying, however, is the decline in Gross Fixed Capital Formation (GFCF) an indicator of investment. GFCF growth rates at current and constant prices are estimated at (-)3.2 per cent and (-)5.6 per cent during Q2 of 2016-17 as compared to 7.5 per cent and 9.7 per cent during Q2 of 2015-16. Talking about challenges, Subramanian said investment was down substantially in the second quarter and that is something that needs to be watched. Referring to the impact of demonetisation of 500 and 1000 rupee notes by the government earlier this month, CII Director General Chandrajit Banerjee said that it would be a "temporary setback" to growth in the coming quarter. As per CSO, GDP at constant (2011-12) prices in the second quarter of 2016-17 is estimated at Rs 29.63 lakh crore, as against Rs 27.62 lakh crore in the year-ago period. The quarterly GVA at basic price at constant (2011-12) prices for July-September is estimated at Rs 27.33 lakh crore, as against Rs 25.52 lakh crore year-on-year. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 5.15 lakh crore for the second quarter as against Rs 4.27 lakh crore year ago. At constant (2011-2012) prices, the GFCE is estimated at Rs 3.84 lakh crore as against Rs 3.33 lakh crore. In terms of GDP, the rates of GFCE at current and constant prices during the second quarter are estimated at 14.1 per cent and 13 per cent respectively, as against the corresponding rate of 13.1 per cent and 12.1 per cent in the same period of 2015-16. Chief Statistician Anant also informed that the 'advance estimates' for national accounts data for the current fiscal will be released on January 7, a month in advance. The data release date is being advanced as government would be presenting the annual budget a month ahead of the usual practice of unveiling it on last working day of February. The data on eight core infrastructure sectors recorded a growth rate of 6.6 per cent in October on the back of impressive performance by steel and refinery products. However, growth rate of power generation, fertiliser production and cement output fell considerably on a year-on-year basis. Coal production continued to fall for the third straight month. The core infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- showed 3.8 per cent in October last year. Core sector contributes 38 per cent to the total industrial production. (PTI)

India's GDP increases to 7.3% in second quarter

Enforcement Directorate (ED) today conducted searches at 40 locations across the country in order to check black money held with currency exchanges, hawala dealers and others in the wake of the demonetisation of Rs 500 and Rs 1000 notes.

Officials said the searches are being conducted by multiple teams of the agency in various cities and as many as 100 sleuths along with police personnel are undertaking the search operation.

In the eastern region, the agency is searching at least 16 locations including six in Kolkata, two each in Bhubaneswar and Paradip (both in Odisha), Guwahati among others.

The sleuths from the Kolkata zone of the ED have also seized Rs 10 lakh cash in new currency from the premises of a doctor in the West Bengal capital during the said operation, even as an assortment of foreign currency worth Rs 4 lakh has been seized from the same area.

They said the agency is looking at instances of illegal exchange of old currency and stashing of new currency notes to perpetrate &quot;hawala&quot; and money laundering-like activities.

ED is the central agency to enforce two laws -- the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA).&nbsp;

(PTI)

&nbsp;

&nbsp;

Enforcement Directorate conducted searches at 40 locations to check black money held with currency exchanges, hawala dealers

Enforcement Directorate (ED) today conducted searches at 40 locations across the country in order to check black money held with currency exchanges, hawala dealers and others in the wake of the demonetisation of Rs 500 and Rs 1000 notes. Officials said the searches are being conducted by multiple teams of the agency in various cities and as many as 100 sleuths along with police personnel are undertaking the search operation. In the eastern region, the agency is searching at least 16 locations including six in Kolkata, two each in Bhubaneswar and Paradip (both in Odisha), Guwahati among others. The sleuths from the Kolkata zone of the ED have also seized Rs 10 lakh cash in new currency from the premises of a doctor in the West Bengal capital during the said operation, even as an assortment of foreign currency worth Rs 4 lakh has been seized from the same area. They said the agency is looking at instances of illegal exchange of old currency and stashing of new currency notes to perpetrate "hawala" and money laundering-like activities. ED is the central agency to enforce two laws -- the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA). (PTI)

Demonetisation: ED acts against black money dealers, raids 40 locations

The lower house of the Indian Parliament, Lok Sabha today passed the Taxation Laws (Second Amendment) Bill 2016 to impose tax on deposits made post the announcement of demonetisation on Novemver 8.&nbsp;

The amendment was cleared by the house without debate amid repeated adjournments.

With the amendment made to the IT Act, the government can impose a 50 per cent tax on cash deposits that is above a certain limit, which is yet to be specified.&nbsp;

The government had proposed to raise penalty under Income Tax Act for search and seizure cases by 3-fold to 30 per cent.&nbsp;

Finance minister Arun Jaitley said the government&#39;s move was aimed at deterring black money holders from misusing the provisions for turning their unaccounted cash into white.&nbsp;

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Govt moved amendments in Income tax law aftr it saw tht a few ppl were still trying to convert black money into white post-demonetisation-FM
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/803530302828122112">November 29, 2016</a></blockquote>
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&nbsp;

The opposition leaders had raised the demand for a debate on demonetisation through an adjournment motion, but Hukum Singh (BJP), who was chairing the proceedings, asked them to wait till he asks members to lay the matters of urgent poublic importance.&nbsp;

The opposition parties continued their tirade against the government in both houses of the Parliament.

More than 30 opposition members, including those from the Congress, TMC and the Left parties, trooped into the Well shouting slogans.&nbsp;

(WION with inputs from agencies)&nbsp; 
&nbsp;

Finance minister said the government move to raise penalty to 30% was aimed at deterring black money holders

The lower house of the Indian Parliament, Lok Sabha today passed the Taxation Laws (Second Amendment) Bill 2016 to impose tax on deposits made post the announcement of demonetisation on Novemver 8. The amendment was cleared by the house without debate amid repeated adjournments. With the amendment made to the IT Act, the government can impose a 50 per cent tax on cash deposits that is above a certain limit, which is yet to be specified. The government had proposed to raise penalty under Income Tax Act for search and seizure cases by 3-fold to 30 per cent. Finance minister Arun Jaitley said the government's move was aimed at deterring black money holders from misusing the provisions for turning their unaccounted cash into white. Govt moved amendments in Income tax law aftr it saw tht a few ppl were still trying to convert black money into white post-demonetisation-FM — ANI (@ANI_news) November 29, 2016 × The opposition leaders had raised the demand for a debate on demonetisation through an adjournment motion, but Hukum Singh (BJP), who was chairing the proceedings, asked them to wait till he asks members to lay the matters of urgent poublic importance. The opposition parties continued their tirade against the government in both houses of the Parliament. More than 30 opposition members, including those from the Congress, TMC and the Left parties, trooped into the Well shouting slogans. (WION with inputs from agencies)

Demonetisation: Lower house of Indian Parliament passes Bill to impose taxes on unaccounted cash deposits

Digital payment providers in India have mobilised hundreds of extra workers to enrol small merchants and offered their services for free, betting that severe cash shortages will prove to be the opportunity of a lifetime.

Signing people up, however, may be the easy part. Getting shops and customers to change their reliance on cash permanently will involve convincing people like Mohammad Javed, a 36-year-old meat shop owner in New Delhi.

Working out of a bustling market in the capital, he is surrounded by banks and ATM machines, but says he does not know how to use a credit card machine, let alone a mobile wallet.

He says business has dropped since Prime Minister Narendra Modi&#39;s shock move on November 8 to ditch higher value banknotes, but Javed does not believe mobile app providers offer a solution to his problem - or to his customers.

&quot;We don&#39;t have knowledge or resources to open a mobile wallet or card-swipe machine, and our customers who pay 100-200 rupees ($1.46-$2.92) are not interested either,&quot; he said.

Javed&#39;s reluctance is a reality check for the likes of Paytm and smaller rival MobiKwik, which have gone into promotional overdrive since Modi&#39;s announcement.

The prime minister, whose government supports digital payments, brought in demonetisation to crack down on the shadow economy and improve tax collection.

&quot;Why should India not make a beginning in creating a &#39;less-cash society?&#39;,&quot; he said on Sunday, &quot;Once we embark on our journey to create a &#39;less-cash society&#39;, the goal of &#39;cashless society&#39; will not remain very far.&quot;

Promising signs

The companies say results have been promising so far.

Paytm, backed by Chinese Internet giant Alibaba Group Holding, has added 700 sales representatives since November 8, taking its number of agents to 5,000.

The company, which has 4,500 full-time employees, plans to double the number of agents to more than 10,000, as it aggressively expands its network.

It says it has nearly doubled the number of small merchants signed up to its services to 1.5 million in the last few weeks and added eight million clients to the 150 million it had before the banknote ban.

MobiKwik, whose backers include US venture capital firm Sequoia Capital and American Express, said it had increased its agent base to more than 10,000 from about 1,000 before the Modi move.

Merchants on its platform have risen to 250,000 from 150,000 previously, and chief executive Bipin Preet Singh said they were aiming for a million in up to two months. It has added 5 million accounts since November 8, bringing the total to 40 million.

But challenges loom.

Credit Suisse estimates more than 90 per cent of consumer purchases are made in cash, as millions still do not have bank accounts. Those who do have bank cards mainly use them to withdraw from cash machines.

Sales of cheap smartphones have boomed in recent years, but internet networks remain patchy, especially in rural India. Financial literacy and technology usage also remain low.

Dillip Kumar Agrahari, a vegetable seller in a Mumbai suburb, recently signed up to Paytm but does not know how to operate a smartphone.

He hopes switching to digital payments will improve his business as the cash crunch drags on, but says he will have to depend on a cousin to help with accounts.

Many businesses have traditionally opted for cash transactions because they are hard for the tax man to trace, given sales taxes are typically at least 10 per cent.

Mangal Singh, a furniture store owner, said nearly 80 per cent of his business was transacted in cash, even though he accepts credit card payments.

&quot;We are working on wafer-thin margins,&quot; he said. &quot;If we are asked to pay 12.5 per cent tax and other charges, we will have to close down our shops.&quot;

Concerns also remain about the infrastructure for mobile payments, as customers or merchants from one platform cannot transfer payments to another.

MobiKwik said it had started offering wallet-to-wallet transfers, though not all rivals were on board.

When will profits come?

The challenges raise questions about whether the business models of mobile payments providers are sustainable.

Paytm recently slashed fees until December 31, from a system of fees that ranged from 1 to 4 per cent, with the most lucrative coming from telephone and utility bill payments.

MobiKwik is not charging fees until March 2017. The closely-held companies are loss-making.

Paytm Chief Executive Vijay Shekhar Sharma said the company expected to reach profitability in two years, without giving details. MobiKwik&#39;s co-founder Upasana Taku said they hoped to become profitable in mid-2018.

Fitch Ratings believes that once the cash crunch subsides, some merchants and customers will go back to business as usual, using notes to pay for transactions.

&quot;I would expect some amount of behavioural changes,&quot; said Fitch analyst Saswata Guha. &quot;We&#39;re still not sure if this shock per se is incentive enough for them to completely change the way they do things.&quot;

(Reuters)

&nbsp;

Once the cash crunch subsides, at least some merchants and customers are expected to go back to using cash

Digital payment providers in India have mobilised hundreds of extra workers to enrol small merchants and offered their services for free, betting that severe cash shortages will prove to be the opportunity of a lifetime. Signing people up, however, may be the easy part. Getting shops and customers to change their reliance on cash permanently will involve convincing people like Mohammad Javed, a 36-year-old meat shop owner in New Delhi. Working out of a bustling market in the capital, he is surrounded by banks and ATM machines, but says he does not know how to use a credit card machine, let alone a mobile wallet. He says business has dropped since Prime Minister Narendra Modi's shock move on November 8 to ditch higher value banknotes, but Javed does not believe mobile app providers offer a solution to his problem - or to his customers. "We don't have knowledge or resources to open a mobile wallet or card-swipe machine, and our customers who pay 100-200 rupees ($1.46-$2.92) are not interested either," he said. Javed's reluctance is a reality check for the likes of Paytm and smaller rival MobiKwik, which have gone into promotional overdrive since Modi's announcement. The prime minister, whose government supports digital payments, brought in demonetisation to crack down on the shadow economy and improve tax collection. "Why should India not make a beginning in creating a 'less-cash society?'," he said on Sunday, "Once we embark on our journey to create a 'less-cash society', the goal of 'cashless society' will not remain very far." Promising signs The companies say results have been promising so far. Paytm, backed by Chinese Internet giant Alibaba Group Holding, has added 700 sales representatives since November 8, taking its number of agents to 5,000. The company, which has 4,500 full-time employees, plans to double the number of agents to more than 10,000, as it aggressively expands its network. It says it has nearly doubled the number of small merchants signed up to its services to 1.5 million in the last few weeks and added eight million clients to the 150 million it had before the banknote ban. MobiKwik, whose backers include US venture capital firm Sequoia Capital and American Express, said it had increased its agent base to more than 10,000 from about 1,000 before the Modi move. Merchants on its platform have risen to 250,000 from 150,000 previously, and chief executive Bipin Preet Singh said they were aiming for a million in up to two months. It has added 5 million accounts since November 8, bringing the total to 40 million. But challenges loom. Credit Suisse estimates more than 90 per cent of consumer purchases are made in cash, as millions still do not have bank accounts. Those who do have bank cards mainly use them to withdraw from cash machines. Sales of cheap smartphones have boomed in recent years, but internet networks remain patchy, especially in rural India. Financial literacy and technology usage also remain low. Dillip Kumar Agrahari, a vegetable seller in a Mumbai suburb, recently signed up to Paytm but does not know how to operate a smartphone. He hopes switching to digital payments will improve his business as the cash crunch drags on, but says he will have to depend on a cousin to help with accounts. Many businesses have traditionally opted for cash transactions because they are hard for the tax man to trace, given sales taxes are typically at least 10 per cent. Mangal Singh, a furniture store owner, said nearly 80 per cent of his business was transacted in cash, even though he accepts credit card payments. "We are working on wafer-thin margins," he said. "If we are asked to pay 12.5 per cent tax and other charges, we will have to close down our shops." Concerns also remain about the infrastructure for mobile payments, as customers or merchants from one platform cannot transfer payments to another. MobiKwik said it had started offering wallet-to-wallet transfers, though not all rivals were on board. When will profits come? The challenges raise questions about whether the business models of mobile payments providers are sustainable. Paytm recently slashed fees until December 31, from a system of fees that ranged from 1 to 4 per cent, with the most lucrative coming from telephone and utility bill payments. MobiKwik is not charging fees until March 2017. The closely-held companies are loss-making. Paytm Chief Executive Vijay Shekhar Sharma said the company expected to reach profitability in two years, without giving details. MobiKwik's co-founder Upasana Taku said they hoped to become profitable in mid-2018. Fitch Ratings believes that once the cash crunch subsides, some merchants and customers will go back to business as usual, using notes to pay for transactions. "I would expect some amount of behavioural changes," said Fitch analyst Saswata Guha. "We're still not sure if this shock per se is incentive enough for them to completely change the way they do things." (Reuters)

Demonetisation: Digital payment firms cash in on India's money mess, but can it last?

Prime Minister Narendra Modi has asked all BJP lawmakers -- both MPs and MLAs -- to furnish all details of their bank transactions between November 8 and December 31 to party president Amit Shah.&nbsp;

The prime minister had on November 8, unexpectedly, announced that the country&#39;s 500- and 1,000-rupee notes would cease to be legal tender from midnight that day.&nbsp;

The move, he said, would unearth the black or illegal money floating in the Indian economy, and would also curtail terror funding.&nbsp;

While the announcement caught the entire country by surprise -- and led to a fair amount of panic -- the Opposition has since accused the BJP of having tipped off industrialists and thier own partymen about the move. They point to media reports about the BJP buying large tracts of land in the state of Bihar just before the announcement as proof.&nbsp;

ANI, citing sources, said the bank details will have to be furnised by January 1.&nbsp;

It is still unclear what will be done with the details once they are furnished, whether for example they will be made public.&nbsp;

The demonetisation of the two notes took 86 per cent&nbsp;of the cash in circulation then out of the economy.&nbsp;

It also led to tremendous hardship, considering 90 per cent&nbsp;of all transaction in India are conducted with cash.&nbsp;

(WION)

The details have to be given to party president Amit Shah by January 1

Prime Minister Narendra Modi has asked all BJP lawmakers -- both MPs and MLAs -- to furnish all details of their bank transactions between November 8 and December 31 to party president Amit Shah. The prime minister had on November 8, unexpectedly, announced that the country's 500- and 1,000-rupee notes would cease to be legal tender from midnight that day. The move, he said, would unearth the black or illegal money floating in the Indian economy, and would also curtail terror funding. While the announcement caught the entire country by surprise -- and led to a fair amount of panic -- the Opposition has since accused the BJP of having tipped off industrialists and thier own partymen about the move. They point to media reports about the BJP buying large tracts of land in the state of Bihar just before the announcement as proof. ANI, citing sources, said the bank details will have to be furnised by January 1. It is still unclear what will be done with the details once they are furnished, whether for example they will be made public. The demonetisation of the two notes took 86 per cent of the cash in circulation then out of the economy. It also led to tremendous hardship, considering 90 per cent of all transaction in India are conducted with cash. (WION)

Demonetisation: PM tells party MPs, MLAs to furnish all bank details from Nov 8 to Dec 31

The Reserve Bank of India (RBI) on Monday late night said that the general public has withdrawn Rs 2.16 lakh crore from their accounts since beginning of demonetisation on November 9, 2016.

RBI further said that deposits in bank accounts during this period, amounted to Rs 8.11 lakh crore. Interestingly, Government had told the Supreme Court earlier this month that it expects around Rs 10-11 lakh crore to be deposited in banks till December 30, 2016 &ndash; the last day of depositing the now illegal tender of Rs 500 and Rs 1000 notes.

However, the long queues and frequent running out of cash has ensured that nearly 50% of this total currency (Rs 14 lakh crore) has already been deposited in banks in two weeks.

Moreover, there has been a sudden surge in deposits with Jan Dhan Accounts.

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<h5>As on November 9, the Government claimed that the 25.5 crore accounts opened under Jan-Dhan Yojana (PMJDY) garnered Rs 45,636.61 crore. The number of accounts now stand at 25.68 crore while deposits have risen to Rs 72,834.72 crore.</h5>
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&nbsp;

PM Modi and Finance Minister Arun Jaitley have been pushing citizens towards a more &#39;less-cash&#39; economy. The Government, on Monday, removed excise duty on &#39;point of sale&#39; machines in order to expedite use of digital currency than hard cash.&nbsp;

However, with over Rs 2 lakh crore withdrawn in two weeks from the Rs 8.11 lakh deposited, it is amply clear that Indians are still not ready to go completely cash-less.&nbsp;

On the evening of November 8, Prime Minister Narendra Modi in a televised address said that nearly 86% of Rs 16 lakh crore that oiled the Indian economy by way of Rs 500 and Rs 1000 notes were illegal tender from midnight.

He said that citizens have&nbsp;50 days to deposit this old currency in banks, exchange it with new or withdraw through ATMs, etc.

The RBI on Monday released data that showed nearly 50% of all demonetised currency in Rs 500 and Rs 1000 notes has been deposited with banks

The Reserve Bank of India (RBI) on Monday late night said that the general public has withdrawn Rs 2.16 lakh crore from their accounts since beginning of demonetisation on November 9, 2016. RBI further said that deposits in bank accounts during this period, amounted to Rs 8.11 lakh crore. Interestingly, Government had told the Supreme Court earlier this month that it expects around Rs 10-11 lakh crore to be deposited in banks till December 30, 2016 – the last day of depositing the now illegal tender of Rs 500 and Rs 1000 notes. However, the long queues and frequent running out of cash has ensured that nearly 50% of this total currency (Rs 14 lakh crore) has already been deposited in banks in two weeks. Moreover, there has been a sudden surge in deposits with Jan Dhan Accounts. As on November 9, the Government claimed that the 25.5 crore accounts opened under Jan-Dhan Yojana (PMJDY) garnered Rs 45,636.61 crore. The number of accounts now stand at 25.68 crore while deposits have risen to Rs 72,834.72 crore. × PM Modi and Finance Minister Arun Jaitley have been pushing citizens towards a more 'less-cash' economy. The Government, on Monday, removed excise duty on 'point of sale' machines in order to expedite use of digital currency than hard cash. However, with over Rs 2 lakh crore withdrawn in two weeks from the Rs 8.11 lakh deposited, it is amply clear that Indians are still not ready to go completely cash-less. On the evening of November 8, Prime Minister Narendra Modi in a televised address said that nearly 86% of Rs 16 lakh crore that oiled the Indian economy by way of Rs 500 and Rs 1000 notes were illegal tender from midnight. He said that citizens have 50 days to deposit this old currency in banks, exchange it with new or withdraw through ATMs, etc.

Demonetisation: Indians withdrew over 2 lakh crore since November 9

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive.&nbsp;

&nbsp;

Under the scheme namely,&nbsp;&lsquo;Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana,&nbsp;2016&rsquo; (PMGKY) proposed in the Bill, it said, &quot;Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (&lsquo;the Bill&rsquo;) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision.&quot;

The Government said, &quot;In the wake of declaring specified bank notes &ldquo;as not legal tender&rdquo;, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy.&quot;

<table border="1" cellpadding="1" cellspacing="1" summary="Changes to Income Tax Act">
	<caption>Overview of Amendments Proposed</caption>
	<tbody>
		<tr>
			<td>PARTICULARS</td>
			<td>EXISTING PROVISIONS</td>
			<td>PROPOSED PROVISIONS</td>
		</tr>
		<tr>
			<td>General provision for penalty&nbsp;</td>
			<td>
			PENALTY (Section 270A)&nbsp;

			Under-reporting - @50% of tax&nbsp;

			Misreporting - @200% of tax

			(Under-reporting/ Misreporting income is normally difference between returned income and assessed income)
			</td>
			<td>No changes proposed</td>
		</tr>
		<tr>
			<td>Provisions for taxation &amp; penalty of unexplained credit, investment, cash and other assets</td>
			<td>
			Penalty (271AAB)

			(i) 10% of income, if admitted, returned and taxes are paid

			(ii) 20% of income, if not admitted but returned&nbsp;and taxes are paid

			(iii) 60% of income in any other case
			</td>
			<td>
			Penalty (271AAB)

			(i) 30% of income, if&nbsp;admitted, returned and taxes are paid

			(ii) 60% of income in any other case
			</td>
		</tr>
		<tr>
			<td>Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016&rsquo; (PMGKY)</td>
			<td>New Taxation&nbsp;and Investment&nbsp;Regime</td>
			<td>
			Undisclosed income in the form of cash &amp; bank deposit can be declared:

			(A)&nbsp;Tax, Surcharge, Penalty payable

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@30% of income declared

			&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Surcharge &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@33% of tax

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Penalty&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@10% of income&nbsp;declared

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Total&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@50% of income (approx.)

			<a id="m_5906746394611854875__GoBack" name="m_5906746394611854875__GoBack"></a>(B) &nbsp;Deposit

			&nbsp;&nbsp;&nbsp;&nbsp; 25% of declared income to be deposited in interest &nbsp;&nbsp;&nbsp;

			&nbsp;&nbsp;&nbsp;&nbsp; free Deposit Scheme for four years.&nbsp;&nbsp;
			</td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
		</tr>
	</tbody>
</table>

&nbsp;

The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called &lsquo;Pradhan Mantri Garib Kalyan Cess&rsquo; @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the &lsquo;Pradhan Mantri Garib Kalyan Deposit Scheme, 2016&rsquo;, it said.&nbsp;

&quot;This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality,&quot; it concluded. &nbsp;

The Taxation Law is expected to tax defaulting assessees at a higher rate and stringent penalty provision

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive. Under the scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) proposed in the Bill, it said, "Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (‘the Bill’) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision." The Government said, "In the wake of declaring specified bank notes “as not legal tender”, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy." Overview of Amendments Proposed PARTICULARS EXISTING PROVISIONS PROPOSED PROVISIONS General provision for penalty PENALTY (Section 270A) Under-reporting - @50% of tax Misreporting - @200% of tax (Under-reporting/ Misreporting income is normally difference between returned income and assessed income) No changes proposed Provisions for taxation & penalty of unexplained credit, investment, cash and other assets Penalty (271AAB) (i) 10% of income, if admitted, returned and taxes are paid (ii) 20% of income, if not admitted but returned and taxes are paid (iii) 60% of income in any other case Penalty (271AAB) (i) 30% of income, if admitted, returned and taxes are paid (ii) 60% of income in any other case Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) New Taxation and Investment Regime Undisclosed income in the form of cash & bank deposit can be declared: (A) Tax, Surcharge, Penalty payable Tax @30% of income declared Surcharge @33% of tax Penalty @10% of income declared Total @50% of income (approx.) (B) Deposit 25% of declared income to be deposited in interest free Deposit Scheme for four years. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’, it said. "This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality," it concluded.

Income Tax Act: This is how the new amnesty scheme looks like

Rupee 500 and 1,000 currency notes might have ceased to be legal tender, but these notes are still dominating most bars across the Indian eastern state of West Bengal. &nbsp;

While dance bars are prohibited in Bengal&rsquo;s capital, Kolkata, singers get a crooning license and sing songs on request. Often, bar regulars are seen showering notes on these crooners.&nbsp;

Despite the Indian government&#39;s announcement to demonetise Rs 500 and Rs 1,000 notes, bars in areas like Baguihati, Keshtopur, Dum Dum, Chinar Park and Chandi Chowk of Kolkata and outskirts are still using the old notes. &nbsp;

For the people who want to use lower denominations of Rs 10 or Rs 100 are allowed exchange of old Rs 500 and Rs 1,000 notes, on the condition that they cannot take any of those notes back home.&nbsp;

&ldquo;With very few Rs 100 notes available in the market, in the initial days we saw that people would exchange their old notes and get change in return and take a few notes home. But, now we are not allowing that. They have to shower the entire bundle of notes on the crooners. Infact, we keep a close watch on them, whether they take any of those notes home or not,&rdquo; said a bar owner, requesting anonymity.&nbsp;

However, regulars at the bar make the payment either through cards or with new currency notes. &ldquo;We are not accepting any payments in the old tender. But, whatever they shower on the crooners in the old tender is deposited by the crooner themselves in their bank accounts,&rdquo; the bar owner added.&nbsp;

Several bars in Mumbai and Delhi have resorted to distribution of children&rsquo;s notes in exchange of currency notes, but bars in Kolkata are yet to catch up with the trend.&nbsp;

(WION)&nbsp;

Bar regulars in Kolkata are showering crooners with old currency notes, or are made to use all notes exchanged by the bar owners

Rupee 500 and 1,000 currency notes might have ceased to be legal tender, but these notes are still dominating most bars across the Indian eastern state of West Bengal. While dance bars are prohibited in Bengal’s capital, Kolkata, singers get a crooning license and sing songs on request. Often, bar regulars are seen showering notes on these crooners. Despite the Indian government's announcement to demonetise Rs 500 and Rs 1,000 notes, bars in areas like Baguihati, Keshtopur, Dum Dum, Chinar Park and Chandi Chowk of Kolkata and outskirts are still using the old notes. For the people who want to use lower denominations of Rs 10 or Rs 100 are allowed exchange of old Rs 500 and Rs 1,000 notes, on the condition that they cannot take any of those notes back home. “With very few Rs 100 notes available in the market, in the initial days we saw that people would exchange their old notes and get change in return and take a few notes home. But, now we are not allowing that. They have to shower the entire bundle of notes on the crooners. Infact, we keep a close watch on them, whether they take any of those notes home or not,” said a bar owner, requesting anonymity. However, regulars at the bar make the payment either through cards or with new currency notes. “We are not accepting any payments in the old tender. But, whatever they shower on the crooners in the old tender is deposited by the crooner themselves in their bank accounts,” the bar owner added. Several bars in Mumbai and Delhi have resorted to distribution of children’s notes in exchange of currency notes, but bars in Kolkata are yet to catch up with the trend. (WION)

Demonetisation: Old currency notes still dominating bars in eastern India

In a shot in the arm for BJP after Prime Minister Narendra Modi&#39;s demonetisation move and ahead of Gujarat elections next year, the party swept local bodies elections by capturing 107 seats out of total 123 seats which went for polls in different parts of the state.

Gujarat chief minister Vijay Rupani hailed the victory as people&#39;s endorsement of Modi&#39;s two recent steps, surgical strikes across the LoC and demonetisation.

&quot;This is truly a grand success of BJP, as elections took place in different parts of state representing people from different communities. Thus, we can say that every section of society accepted BJP,&quot; said Rupani.

The party won in two municipalities and one taluka panchayat along with majority seats of various other local bodies on which voting was held on Sunday. The result was declared today.

BJP captured 107 out of total 123 seats which went for polls in different parts of the state.

Putting a dismal performance ahead of the Assembly polls due next year, the Congress manged to capture only 16 seats in this election.

As per the final result declared by the Gujarat State Election Commission, BJP has registered victory in Vapi municipality of Valsad district by capturing 41 out of total 44 seats. Only three seats went to Congress. Vapi municipality was earlier held by BJP.

Similarly, BJP made a near clean sweep in the polls to Kanakpur-Kansad municipality of Surat, where it captured 27 out of 28 seats, leaving only one to Congress. It was also held by BJP earlier.

In Rajkot, BJP snatched Gondal taluka panchayat, which went for the&nbsp;mid-term poll, from Congress by winning 18 out of total 22 seats. Congress settled for only four. Earlier, Congress was ruling Gondal taluka panchayat.

The results of the local bodies elections assume significance for the BJP in the run-up to the state polls next year, and that they were held just after the demonetisation of Rs 500 and Rs 1,000 notes by the Centre.

Apart from these three elections, Gujarat SEC conducted by-elections on 29 seats of various municipalities, taluka panchayats and district panchayats across the state. The by-polls were necessitated as these seats fell vacant due to various reasons.

Out of total 16 seats of different municipalities, BJP bagged 14 while Congress has to settle for only two. Out of the total four seats of district panchayats, both the parties bagged two each. In the taluka panchayat by-polls, BJP won on five out of total nine while Congress captured four seats.&nbsp;

BJP spokesperson Bharat Pandya said that this is a vote for demonetisation decision of the BJP and negative approach of the Congress to oppose the anti-black money move.

Gujarat Congress conceded its defeat and vowed to work hard for the people. The opposition party also downplayed BJP&#39;s victory, claiming that people&#39;s mood can&#39;t be judged from such local body polls.

&quot;We accept our defeat. But, BJP must not forget that it was only by-poll on some seats. Results of these polls cannot be taken as the litmus test of people&#39;s mood. We will introspect on these results. We will continue to raise issues concerning people,&quot; Gujarat Congress spokesperson Manish Doshi said.&nbsp;

(PTI)

Chief minister Rupani hailed the victory as people's endorsement of PM Modi's two recent steps, surgical strikes and demonetisation

In a shot in the arm for BJP after Prime Minister Narendra Modi's demonetisation move and ahead of Gujarat elections next year, the party swept local bodies elections by capturing 107 seats out of total 123 seats which went for polls in different parts of the state. Gujarat chief minister Vijay Rupani hailed the victory as people's endorsement of Modi's two recent steps, surgical strikes across the LoC and demonetisation. "This is truly a grand success of BJP, as elections took place in different parts of state representing people from different communities. Thus, we can say that every section of society accepted BJP," said Rupani. The party won in two municipalities and one taluka panchayat along with majority seats of various other local bodies on which voting was held on Sunday. The result was declared today. BJP captured 107 out of total 123 seats which went for polls in different parts of the state. Putting a dismal performance ahead of the Assembly polls due next year, the Congress manged to capture only 16 seats in this election. As per the final result declared by the Gujarat State Election Commission, BJP has registered victory in Vapi municipality of Valsad district by capturing 41 out of total 44 seats. Only three seats went to Congress. Vapi municipality was earlier held by BJP. Similarly, BJP made a near clean sweep in the polls to Kanakpur-Kansad municipality of Surat, where it captured 27 out of 28 seats, leaving only one to Congress. It was also held by BJP earlier. In Rajkot, BJP snatched Gondal taluka panchayat, which went for the mid-term poll, from Congress by winning 18 out of total 22 seats. Congress settled for only four. Earlier, Congress was ruling Gondal taluka panchayat. The results of the local bodies elections assume significance for the BJP in the run-up to the state polls next year, and that they were held just after the demonetisation of Rs 500 and Rs 1,000 notes by the Centre. Apart from these three elections, Gujarat SEC conducted by-elections on 29 seats of various municipalities, taluka panchayats and district panchayats across the state. The by-polls were necessitated as these seats fell vacant due to various reasons. Out of total 16 seats of different municipalities, BJP bagged 14 while Congress has to settle for only two. Out of the total four seats of district panchayats, both the parties bagged two each. In the taluka panchayat by-polls, BJP won on five out of total nine while Congress captured four seats. BJP spokesperson Bharat Pandya said that this is a vote for demonetisation decision of the BJP and negative approach of the Congress to oppose the anti-black money move. Gujarat Congress conceded its defeat and vowed to work hard for the people. The opposition party also downplayed BJP's victory, claiming that people's mood can't be judged from such local body polls. "We accept our defeat. But, BJP must not forget that it was only by-poll on some seats. Results of these polls cannot be taken as the litmus test of people's mood. We will introspect on these results. We will continue to raise issues concerning people," Gujarat Congress spokesperson Manish Doshi said. (PTI)

Gujarat: BJP sweeps civic polls, wins 107 out of 123 seats

The Indian government is looking to enshrine new laws to crack down on people who have deposited undisclosed income post the announcement of demonetisation.

India&#39;s Finance Minister Arun Jaitley introduced a Bill on Monday to amend the Income Tax Act -- it seeks to impose a 50 per cent tax on cash deposits that is above a certain limit, which is yet to be specified.

Further, people with unaccounted wealth who are caught by taxmen in raids will have to pay a 70 per cent tax and a 15 per cent penalty. A 30 per cent penalty will be imposed if the source of the undisclosed cash cannot be explained.&nbsp;

The amended Bill also proposes that declarants would have to deposit 25 per cent of the unaccounted cash deposited into a scheme, which will be used to upgrade the country&#39;s infrastructure such as irrigation, primary education, primary health and housing projects.

The federal government is pulling out all stops to plug loopholes in the system as critics of the demonetisation plan say the purpose of the entire move will be defeated if people can legalise unaccounted cash through proxy bank accounts.

In recent days, there has been an unprecedented surge in cash deposits in zero-balance bank accounts. Indian media reports suggest that roughly Rs 21,000 crore (roughly $ 3 billion) has been deposited ever since the Indian government made the sudden announcement to annul mid to high-value bank notes.

The Bill is likely to become law in the next few weeks if the lower house of the Parliament functions smoothly and the opposition decides to end their protests.

The Indian government had announced the scrapping of Rs 500 and Rs 1,000 notes on November 8.

(WION)

&nbsp;

If the Bill is passed, people who have deposited undisclosed cash will be taxed 50% and those who get caught by taxmen will be taxed 85%

The Indian government is looking to enshrine new laws to crack down on people who have deposited undisclosed income post the announcement of demonetisation. India's Finance Minister Arun Jaitley introduced a Bill on Monday to amend the Income Tax Act -- it seeks to impose a 50 per cent tax on cash deposits that is above a certain limit, which is yet to be specified. Further, people with unaccounted wealth who are caught by taxmen in raids will have to pay a 70 per cent tax and a 15 per cent penalty. A 30 per cent penalty will be imposed if the source of the undisclosed cash cannot be explained. The amended Bill also proposes that declarants would have to deposit 25 per cent of the unaccounted cash deposited into a scheme, which will be used to upgrade the country's infrastructure such as irrigation, primary education, primary health and housing projects. The federal government is pulling out all stops to plug loopholes in the system as critics of the demonetisation plan say the purpose of the entire move will be defeated if people can legalise unaccounted cash through proxy bank accounts. In recent days, there has been an unprecedented surge in cash deposits in zero-balance bank accounts. Indian media reports suggest that roughly Rs 21,000 crore (roughly $ 3 billion) has been deposited ever since the Indian government made the sudden announcement to annul mid to high-value bank notes. The Bill is likely to become law in the next few weeks if the lower house of the Parliament functions smoothly and the opposition decides to end their protests. The Indian government had announced the scrapping of Rs 500 and Rs 1,000 notes on November 8. (WION)

Demonetisation: Government tables Bill to impose high taxes & penalties on unaccounted cash deposits

India&rsquo;s Opposition parties observing the &ldquo;Jan Aakrosh Diwas&rdquo; (People&rsquo;s Day of Anger) today held a strategy meet Monday and decided to continue their agitation in Parliament till Prime minister Modi gives them a reply on the demonetisation issue.&nbsp;

The lower house (Lok Sabha) was adjourned for the day in the afternoon after the opposition insisted on a debate on demonetisation under an adjournment motion rule that entails voting.&nbsp;

A meeting of all the Opposition parties, except the Janta Dal (United), was held in Parliament in the chamber of the leader of the Opposition in the Rajya Sabha (Upper House), Ghulam Nabi Azad.

It was decided there that their protests will continue till the demands of the Opposition are met, PTI reported.&nbsp;

But there are also fissures within the Opposition parties.

The Janta Dal (United), which has come out in suppport of demonetisation, skipped the meeting.&nbsp;

There has also been a divide over the means of protesting demonetisation ever since West Bengal&rsquo;s Trinamool Congress chief Mamata Banerjee decided to march to the President against it, PTI reported.

While she was joined by the Aam Aadmi Party, the National Conference and other opposition parties stayed away.

The Shiv Sena, which is an ally, has backed demonetisation but said it is unhappy by how it is causing problems for the people.&nbsp;

(WION with inputs from PTI)

The Prime Minister has still not addressed the issue in either house

India’s Opposition parties observing the “Jan Aakrosh Diwas” (People’s Day of Anger) today held a strategy meet Monday and decided to continue their agitation in Parliament till Prime minister Modi gives them a reply on the demonetisation issue. The lower house (Lok Sabha) was adjourned for the day in the afternoon after the opposition insisted on a debate on demonetisation under an adjournment motion rule that entails voting. A meeting of all the Opposition parties, except the Janta Dal (United), was held in Parliament in the chamber of the leader of the Opposition in the Rajya Sabha (Upper House), Ghulam Nabi Azad. It was decided there that their protests will continue till the demands of the Opposition are met, PTI reported. But there are also fissures within the Opposition parties. The Janta Dal (United), which has come out in suppport of demonetisation, skipped the meeting. There has also been a divide over the means of protesting demonetisation ever since West Bengal’s Trinamool Congress chief Mamata Banerjee decided to march to the President against it, PTI reported. While she was joined by the Aam Aadmi Party, the National Conference and other opposition parties stayed away. The Shiv Sena, which is an ally, has backed demonetisation but said it is unhappy by how it is causing problems for the people. (WION with inputs from PTI)

Demonetisation: Opposition to continue protest in Parliament till PM gives reply

The government is considering increasing the amount of bonds issued under the so-called market stabilisation scheme (MSS) to drain out excess cash from the banking system, economic affairs secretary Shaktikanta Das said on Monday.

The government will study a current central bank proposal to increase the limit of MSS bonds issued this year and will take a decision accordingly, Das told reporters in New Delhi.

India has budgeted the issuance of 200 billion rupees ($2.91 billion) of MSS bonds in the year ending in March.&nbsp;

Banks have been flush with deposits after the government abolished 500 and 1,000 rupee notes earlier this month, forcing the RBI on Saturday to temporarily increase the amount of funds banks must deposit under the cash reserve ratio.&nbsp;

RBI Governor Urjit Patel on Sunday said the measure to raise CRR would be reviewed once the government issues more MSS bonds, Press Trust of India reported in a story carried by several local media.&nbsp; 
 
(Reuters)

The government will study an RBI proposal to increase limit of MSS bonds issued this year, economic affairs secretary Shaktikanta Das said

The government is considering increasing the amount of bonds issued under the so-called market stabilisation scheme (MSS) to drain out excess cash from the banking system, economic affairs secretary Shaktikanta Das said on Monday. The government will study a current central bank proposal to increase the limit of MSS bonds issued this year and will take a decision accordingly, Das told reporters in New Delhi. India has budgeted the issuance of 200 billion rupees ($2.91 billion) of MSS bonds in the year ending in March. Banks have been flush with deposits after the government abolished 500 and 1,000 rupee notes earlier this month, forcing the RBI on Saturday to temporarily increase the amount of funds banks must deposit under the cash reserve ratio. RBI Governor Urjit Patel on Sunday said the measure to raise CRR would be reviewed once the government issues more MSS bonds, Press Trust of India reported in a story carried by several local media. (Reuters)

Demonetisation: Government considers issuing bonds under market stabilisation scheme

West Bengal

The state-wide 12-hour strike called by the Left Parties to protest the demonetisation of Rs 1000 and Rs 500 notes began in West Bengal today, with normal life visibly unaffected in the first few hours. Government buses and other private vehicles were seen plying on the road. 
 
&quot;So far there has been no major incident, except a few small ones in the districts,&quot; a senior police official said. The strike call by the Left Front has been opposed by the ruling TMC in West Bengal. &quot;We oppose bandhs. We will take out a protest march (against demonetisation) on Monday,&quot; state Chief Minister Mamata Banerjee had said. 
 
The TMC said it was against putting people to more hardship when they are &quot;already facing a lot of problems owing to the scarcity of cash&quot;. Instead, the TMC will take out a rally from College Square to Esplanade today to protest against demonetisation, TMC general secretary Subrata Bakshi had said. 
 
The state government has ordered all its employees to attend offices today and tomorrow. Exceptions would be made only in case of bereavement, maternity leave, hospitalisation and other &quot;genuine reasons&quot;, a circular issued by the state finance department said. 
 
Over 3,000 police personnel have been deployed in the metropolis to tackle any untoward incident, Kolkata Police Additional Commissioner of Police (III) Supratim Sarkar had said.

&nbsp;

Kerala

The 12-hour strike called by the Communist Party of India (CPI(M))-led Left Democratic Front (LDF) government in Kerala, as part of the nationwide agitation by opposition parties against demonetisation and the resultant crisis being faced by the cooperative sector in the state, began this morning. 
 
In the early hours of the strike which started at 6 AM, autorickshaws were seen occassionally, providing some relief to people. Police vehicles were used to transport railway passengers and patients coming from far off places to the Regional Cancer Centre. 
 
Kerala State Road Transport Corporation (KSRTC) and private buses are keeping off roads in most places. Some Sabarimala pilgrims who arrived at Kottayam by train complained that they were unable to leave for the Ayyappa temple as buses were not running. &quot;We have been waiting for hours. Though some private taxis are available, we cannot afford them as the fares are exorbitant,&quot; a man from Andhra Pradesh said. 
 
The tourism sector and vehicles of Sabarimala pilgrims have been exempted from the strike. Keeping in mind the peak tourist season, the government had decided to exempt tourists from the strike. It has issued instructions to all departments concerned, including police to take all possible steps to ensure that the tourism sector was not hit by the strike. Tourism Minister Kadakampally Surendran had also requested for exemption of tourists and tourist vehicles from the strike. 
 
German Cruise liner AIDAbella which had arrived in Kochi made a turnaround call at the Kochi port yesterday. At least 1000 tourists would be arriving at the airport today to embark the vessel, while some would be leaving it to explore various places. 
 
Tour operators were assured by Tourism Principal Secretary V Venu that the hartal would not affect the visitors. The opposition Congress-led United Democratic Front (UDF) would be taking out a march to the Raj Bhavan here at 11 AM on the crisis being faced by the cooperative sector. 
 
Banks, newspapers, milk supply, hospitals and marriage functions would be exempted from the shutdown, LDF convener Vaikom Viswam had said in a statement. 
 
The LDF had announced the strike as part of the nationwide protest against the Centre&#39;s move of scrapping Rs 500 and Rs 1,000 notes.

(PTI)

&nbsp;

Left parties in both states have ordered strikes in response to the various hardships imposed by demonetisation

West Bengal The state-wide 12-hour strike called by the Left Parties to protest the demonetisation of Rs 1000 and Rs 500 notes began in West Bengal today, with normal life visibly unaffected in the first few hours. Government buses and other private vehicles were seen plying on the road. "So far there has been no major incident, except a few small ones in the districts," a senior police official said. The strike call by the Left Front has been opposed by the ruling TMC in West Bengal. "We oppose bandhs. We will take out a protest march (against demonetisation) on Monday," state Chief Minister Mamata Banerjee had said. The TMC said it was against putting people to more hardship when they are "already facing a lot of problems owing to the scarcity of cash". Instead, the TMC will take out a rally from College Square to Esplanade today to protest against demonetisation, TMC general secretary Subrata Bakshi had said. The state government has ordered all its employees to attend offices today and tomorrow. Exceptions would be made only in case of bereavement, maternity leave, hospitalisation and other "genuine reasons", a circular issued by the state finance department said. Over 3,000 police personnel have been deployed in the metropolis to tackle any untoward incident, Kolkata Police Additional Commissioner of Police (III) Supratim Sarkar had said. Kerala The 12-hour strike called by the Communist Party of India (CPI(M))-led Left Democratic Front (LDF) government in Kerala, as part of the nationwide agitation by opposition parties against demonetisation and the resultant crisis being faced by the cooperative sector in the state, began this morning. In the early hours of the strike which started at 6 AM, autorickshaws were seen occassionally, providing some relief to people. Police vehicles were used to transport railway passengers and patients coming from far off places to the Regional Cancer Centre. Kerala State Road Transport Corporation (KSRTC) and private buses are keeping off roads in most places. Some Sabarimala pilgrims who arrived at Kottayam by train complained that they were unable to leave for the Ayyappa temple as buses were not running. "We have been waiting for hours. Though some private taxis are available, we cannot afford them as the fares are exorbitant," a man from Andhra Pradesh said. The tourism sector and vehicles of Sabarimala pilgrims have been exempted from the strike. Keeping in mind the peak tourist season, the government had decided to exempt tourists from the strike. It has issued instructions to all departments concerned, including police to take all possible steps to ensure that the tourism sector was not hit by the strike. Tourism Minister Kadakampally Surendran had also requested for exemption of tourists and tourist vehicles from the strike. German Cruise liner AIDAbella which had arrived in Kochi made a turnaround call at the Kochi port yesterday. At least 1000 tourists would be arriving at the airport today to embark the vessel, while some would be leaving it to explore various places. Tour operators were assured by Tourism Principal Secretary V Venu that the hartal would not affect the visitors. The opposition Congress-led United Democratic Front (UDF) would be taking out a march to the Raj Bhavan here at 11 AM on the crisis being faced by the cooperative sector. Banks, newspapers, milk supply, hospitals and marriage functions would be exempted from the shutdown, LDF convener Vaikom Viswam had said in a statement. The LDF had announced the strike as part of the nationwide protest against the Centre's move of scrapping Rs 500 and Rs 1,000 notes. (PTI)

Demonetisation: Strikes begin today in West Bengal and Kerala

The demonetisation of the country&#39;s 500- and 1,000-rupee notes by the Modi government has brought about a rarely-seen unity among the Opposition parties -- they have called for nationwide protests today -- but they stand divided over the way they would protest the measure.

The Left parties have called a 12-hour bandh (strike) in West Bengal to protest against the demonetisation&nbsp;but chief minister Mamata Banerjee&#39;s Trinamool Congress (TMC) will not join the strike; her party will only hold protests.

The Congress too has decided against a bandh. Senior party leader Jairam Ramesh said no &quot;Bharat Bandh&quot; (India Strike) has been called by the party, but that it will hold nationwide protests as part of a &quot;Jan Aakrosh Diwas&quot; or People&#39;s Day of Anger. A strike he said would only add to people&#39;s miseries.&nbsp;

The JD(U) has decided not to participate in the protests after its leader and Bihar chief minister Nitish Kumar welcomed the demonetisation, calling it a &quot;courageous step&quot;.&nbsp;

Mamata Banerjee&#39;s TMC and Delhi Chief Minister Arvind Kejriwal&#39;s AAP are the only parties which have demanded a rollback; the other parties have voiced their displeasure over the way the demonetisation&nbsp;is being implemented and the hardships that it&nbsp;is causing common people.

(This report first appeared in DNA)

But most stop short of calling a strike, say that would only add to people's miseries

The demonetisation of the country's 500- and 1,000-rupee notes by the Modi government has brought about a rarely-seen unity among the Opposition parties -- they have called for nationwide protests today -- but they stand divided over the way they would protest the measure. The Left parties have called a 12-hour bandh (strike) in West Bengal to protest against the demonetisation but chief minister Mamata Banerjee's Trinamool Congress (TMC) will not join the strike; her party will only hold protests. The Congress too has decided against a bandh. Senior party leader Jairam Ramesh said no "Bharat Bandh" (India Strike) has been called by the party, but that it will hold nationwide protests as part of a "Jan Aakrosh Diwas" or People's Day of Anger. A strike he said would only add to people's miseries. The JD(U) has decided not to participate in the protests after its leader and Bihar chief minister Nitish Kumar welcomed the demonetisation, calling it a "courageous step". Mamata Banerjee's TMC and Delhi Chief Minister Arvind Kejriwal's AAP are the only parties which have demanded a rollback; the other parties have voiced their displeasure over the way the demonetisation is being implemented and the hardships that it is causing common people. (This report first appeared in DNA)

Demonetisation: Opposition to hold nationwide protests today

Indian Prime Minister Narendra Modi on Saturday said that the decision on demonetisation is tough &quot;but (the) future will be bright&quot;.

He advised people, including villagers, to take the e-wallet route to withdraw money in order to counter problems while withdrawing money.

&quot;Era of wallet has gone, you can use your mobile phone as your bank branch with the same ease with which you take snaps and send them to friends,&quot; Modi said.&nbsp;

Earlier in the day, during his monthly address to the nation, Modi urged the nation, especially the youth, to embrace demonetisation of Rs 500 and Rs 1,000 notes and adopt digital banking.&nbsp;

About criticisms over implementation of the major currency move, Modi said that &quot;the disease which has infected the country for 70 years cannot have a simple treatment&quot;.&nbsp;

He appealed to people to be patient and allow the government the time need to fight black money. &quot;Time has come for everyone, particularly my young friends, to embrace e-banking, mobile banking &amp; more such technology,&quot; Modi tweeted.

He questioned the opposition&#39;s reluctance to digital banking and asked why they were resolute on its stand that the poor and rural population are not tech savy.&nbsp;

The government has launched programmes to assist people living in villages who do not have bank accounts yet.&nbsp;

He urged the citizens to participate in a survey and vote on the demonetisation policy through the Narendra Modi app on their mobile phones.&nbsp;

The scheme had the support of over 93 per cent of the 5,00,000 people, a statement put out by Prime Minister Modi&#39;s website said.

Modi also &nbsp;criticised opposition parties for announcing an all-India strike against demonetisation, saying they were organising the agitation at a time when he was trying to weed out corruption and black money.

&quot;I am stopping black money and corruption and some are giving call for Bharat Bandh (nationwide strike),&quot; Modi said during a rally in Uttar Pradesh.

Without naming any opposition party, Modi said: &quot;We are trying to curb corruption and they are organising &#39;Bharat Bandh&#39;. Should there be &#39;Bharat Bandh&#39; or should the route of corruption be blocked?&quot;&nbsp;

Meanwhile, the opposition -- spearheaded by the Congress -- clarified that while they would go ahead with &#39;Akrosh Diwas&#39; (Anger Day) on Monday to mark their protest, they would not hold a nationwide strike and bring the country to a standstill.&nbsp;

(WION with inputs from&nbsp;

&nbsp;

He urged the nation, especially the youth, to adopt digital banking

Indian Prime Minister Narendra Modi on Saturday said that the decision on demonetisation is tough "but (the) future will be bright". He advised people, including villagers, to take the e-wallet route to withdraw money in order to counter problems while withdrawing money. "Era of wallet has gone, you can use your mobile phone as your bank branch with the same ease with which you take snaps and send them to friends," Modi said. Earlier in the day, during his monthly address to the nation, Modi urged the nation, especially the youth, to embrace demonetisation of Rs 500 and Rs 1,000 notes and adopt digital banking. About criticisms over implementation of the major currency move, Modi said that "the disease which has infected the country for 70 years cannot have a simple treatment". He appealed to people to be patient and allow the government the time need to fight black money. "Time has come for everyone, particularly my young friends, to embrace e-banking, mobile banking & more such technology," Modi tweeted. He questioned the opposition's reluctance to digital banking and asked why they were resolute on its stand that the poor and rural population are not tech savy. The government has launched programmes to assist people living in villages who do not have bank accounts yet. He urged the citizens to participate in a survey and vote on the demonetisation policy through the Narendra Modi app on their mobile phones. The scheme had the support of over 93 per cent of the 5,00,000 people, a statement put out by Prime Minister Modi's website said. Modi also criticised opposition parties for announcing an all-India strike against demonetisation, saying they were organising the agitation at a time when he was trying to weed out corruption and black money. "I am stopping black money and corruption and some are giving call for Bharat Bandh (nationwide strike)," Modi said during a rally in Uttar Pradesh. Without naming any opposition party, Modi said: "We are trying to curb corruption and they are organising 'Bharat Bandh'. Should there be 'Bharat Bandh' or should the route of corruption be blocked?" Meanwhile, the opposition -- spearheaded by the Congress -- clarified that while they would go ahead with 'Akrosh Diwas' (Anger Day) on Monday to mark their protest, they would not hold a nationwide strike and bring the country to a standstill. (WION with inputs from

Demonetisation: PM says era of wallet is gone, use mobile like your bank

While crores of people wait outside the banks across country to deposit and withdraw their hard-earned money, those in possession of black money have figured out a way to convert it into white.&nbsp;

WION got in touch with agents who have been involved&nbsp;in such murky dealings to understand the modus operandi of the entire process of converting black money into new legal tenders. (WION has audio recordings in possession).

The touts, who did not want to reveal their names, said they were in cahoots with bank managers as they provide them with whatever&nbsp;cash they require in new currency notes.&nbsp;

&quot;The bank manager has to be told a day in advance about the amount needed in new notes (to convert black money into white). The next morning, when RBI ( Reserve Bank Of India) sends money to his branch, the manager gives us the money and tells other customers who gather at the branch that they have a cash crunch and cannot dispense the amount they require,&quot; one of the agents said.&nbsp;

When asked about how managers manage to fudge the old and new cash balance,&nbsp;the agents said that they are in touch with different chartered accountants who have hundreds of bank accounts in different branches.&nbsp;

&quot;The bank managers make bogus entry under the accounts of these chartered accountants. In their records, they show that they exchanged certain amount of old currency into new currency for the chartered accountants and put the fake entries under the multiple accounts held by them,&quot; an agent explained.&nbsp;

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To substantiate the claim of these agents, WION spoke to customers visiting banks to get their currency exchanged.

Shaguna Kanwar, a social worker by profession, told us that she had to wait in a queue at a bank for nearly three hours and was then told that they have run out of new notes. She said she received Rs 15,000 in new currency only after she made a &quot;hue and cry&quot;.&nbsp;

&quot;It is suprising that the bank managed to find new notes for me when they officially declared that they are left with no more cash,&quot; Shaguna told WION.&nbsp;

The touts said the bank managers were charging 20 per cent in commission from them.

As for the agents, they ask for a 30 per cent commission from customers who want to legalise their unaccounted wealth.

&quot;This means that a person will have to pay Rs 4.5 crore in commission to us if he wants to convert Rs 15 crore&nbsp;into white money,&quot;&nbsp;an unnamed agent told WION.&nbsp;

If the claims made by the agents are true, it exposes and undermines the federal government&#39;s plan to crack down on black money.&nbsp;

(WION)

Agents explain how bank managers and chartered accountants are exploiting loopholes to help those with unaccounted wealth

While crores of people wait outside the banks across country to deposit and withdraw their hard-earned money, those in possession of black money have figured out a way to convert it into white. WION got in touch with agents who have been involved in such murky dealings to understand the modus operandi of the entire process of converting black money into new legal tenders. (WION has audio recordings in possession). The touts, who did not want to reveal their names, said they were in cahoots with bank managers as they provide them with whatever cash they require in new currency notes. "The bank manager has to be told a day in advance about the amount needed in new notes (to convert black money into white). The next morning, when RBI ( Reserve Bank Of India) sends money to his branch, the manager gives us the money and tells other customers who gather at the branch that they have a cash crunch and cannot dispense the amount they require," one of the agents said. When asked about how managers manage to fudge the old and new cash balance, the agents said that they are in touch with different chartered accountants who have hundreds of bank accounts in different branches. "The bank managers make bogus entry under the accounts of these chartered accountants. In their records, they show that they exchanged certain amount of old currency into new currency for the chartered accountants and put the fake entries under the multiple accounts held by them," an agent explained. To substantiate the claim of these agents, WION spoke to customers visiting banks to get their currency exchanged. Shaguna Kanwar, a social worker by profession, told us that she had to wait in a queue at a bank for nearly three hours and was then told that they have run out of new notes. She said she received Rs 15,000 in new currency only after she made a "hue and cry". "It is suprising that the bank managed to find new notes for me when they officially declared that they are left with no more cash," Shaguna told WION. The touts said the bank managers were charging 20 per cent in commission from them. As for the agents, they ask for a 30 per cent commission from customers who want to legalise their unaccounted wealth. "This means that a person will have to pay Rs 4.5 crore in commission to us if he wants to convert Rs 15 crore into white money," an unnamed agent told WION. If the claims made by the agents are true, it exposes and undermines the federal government's plan to crack down on black money. (WION)

Exclusive: Touts, bank managers beat the system to convert black money into white

After calling for special relief measures for poor hit by demonetisation, industrialist Ratan Tata today termed the move as one of the three most important economic reforms that will help fight black money.

Tata, who is locked in a bitter boardroom battle over control of the Tata Group with his successor Cyrus P Mistry, said the government&#39;s bold implementation of the demonetisation programme needs the nation&#39;s support.

&quot;Demonetisation is amongst the three most important economic reforms in India&#39;s history, along with delicensing and GST,&quot; Tata said in a tweet.

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The government&rsquo;s bold implementation of the demonetization programme needs the nation&rsquo;s support. <a href="https://t.co/tx1ZILSor8">pic.twitter.com/tx1ZILSor8</a>
&mdash; Ratan N. Tata (@RNTata2000) <a href="https://twitter.com/RNTata2000/status/802409025103020032">November 26, 2016</a></blockquote>
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The Prime Minister&#39;s recent focus on mobile and digital payments will also greatly facilitate the transition from a cash-driven economy to a cashless economy, which in the ling term will enormously benefit the poor and underprivileged, he added.

&quot;The government&#39;s firm resolve to fight and eliminate black money needs the support and cooperation of all like minded citizens of India who would like to see more equitable distribution of the nation&#39;s resources in a new India of tomorrow, based on merit and equal opportunity,&quot; Tata said.

He added that the parallel black money economy in India has fueled tax evasion, money laundering and corruption. &quot;The Prime Minister has displayed enormous courage in waging war on the black market economy in the country through the implementation of a major demonetisation programme,&quot; Tata said.

Earlier this week, the noted industrialist had asked the the government to consider special relief measures, similar to those employed at the time of national calamities, for the poor so as to lessen their hardships of currency crunch following demonetisation of high value notes.&nbsp; 
 
(PTI) 
&nbsp;

Ratan Tata says demonetisation is among the three most important economic reforms along with delicensing and the Goods and Services Tax

After calling for special relief measures for poor hit by demonetisation, industrialist Ratan Tata today termed the move as one of the three most important economic reforms that will help fight black money. Tata, who is locked in a bitter boardroom battle over control of the Tata Group with his successor Cyrus P Mistry, said the government's bold implementation of the demonetisation programme needs the nation's support. "Demonetisation is amongst the three most important economic reforms in India's history, along with delicensing and GST," Tata said in a tweet. The government’s bold implementation of the demonetization programme needs the nation’s support. pic.twitter.com/tx1ZILSor8 — Ratan N. Tata (@RNTata2000) November 26, 2016 × The Prime Minister's recent focus on mobile and digital payments will also greatly facilitate the transition from a cash-driven economy to a cashless economy, which in the ling term will enormously benefit the poor and underprivileged, he added. "The government's firm resolve to fight and eliminate black money needs the support and cooperation of all like minded citizens of India who would like to see more equitable distribution of the nation's resources in a new India of tomorrow, based on merit and equal opportunity," Tata said. He added that the parallel black money economy in India has fueled tax evasion, money laundering and corruption. "The Prime Minister has displayed enormous courage in waging war on the black market economy in the country through the implementation of a major demonetisation programme," Tata said. Earlier this week, the noted industrialist had asked the the government to consider special relief measures, similar to those employed at the time of national calamities, for the poor so as to lessen their hardships of currency crunch following demonetisation of high value notes. (PTI)

Demonetisation among 3 most important economic reforms in India's history: Ratan Tata

Breaking his silence over the demonetisation issue, Resrve Bank of India&nbsp;Governor Urjit Patel today said the central bank is monitoring the situation on a daily basis and taking all necessary actions to &quot;ease the genuine pain of citizens&quot; with a clear intent to normalise the things as early as possible.

Patel also said the RBI has announced an incremental CRR (Cash Reserve Ratio) of 100 per cent &quot;because of the large increase in deposits of banks on account of the return of Rs 1,000 and Rs 500 notes&quot; and the decision would be reviewed immediately once the government issues adequate quantum of MSS (Market Stablisation Scheme) bonds which they have promised to do.

In an exclusive interview to PTI, Patel said the situation arising out of the decision to withdraw Rs 500/1,000 notes is being monitored on a daily basis and the printing presses have started to rebalance the production of new notes towards Rs 100 and Rs 500 bills.

He also urged the people to start using cash substitutes like debit cards and digital wallets, saying it will make transactions cheaper and easier and in the long term, it will help India &quot;leapfrog into a less cash-use economy at par with more developed nations.&quot;

&quot;We are also urging banks to make a big push with PoS (Point of Sale) machines with traders so that debit card use becomes more prevalent,&quot; he said.

Giving details of the steps being taken by RBI, he said, &quot;Both RBI and government have been getting the printing presses to work at capacity to get the new notes available to meet demand.

&quot;The RBI is interacting with the banks every day. They are telling us that the situation is gradually easing. The queues in branches and ATMs are shorter and the markets are starting to function, and there are no reported shortages of daily items of consumption.

&quot;Also, about 40-50,000 people were deployed to refit the ATMs. Currency is available and banks are working in a mission mode to lift currency and take them to their branches and ATMs. The staff members of all banks have worked very hard, and we all owe them our gratitude,&quot; Patel said.

&quot;Having said that, it is important to regularly review the situation, and taking the required decisions to ease the genuine pain of citizens who are honest and who have been hurt. There are no precedents on this subject at this scale and we have to be reactive to the situation.

&quot;People have asked why the new currency introduced was different in size and thickness from the old. This is because the new currency has been designed to make it hard to counterfeit. When you are going to make a change of this magnitude, you need to get the best standards in place,&quot; Patel said.

This is the first-ever interview as RBI Governor by Patel, who is known to keep a low profile.&nbsp;

(PTI)

Urjit Patel, governor of India's central bank, also urged people to start using cash substitutes like debit cards and digital wallets

Breaking his silence over the demonetisation issue, Resrve Bank of India Governor Urjit Patel today said the central bank is monitoring the situation on a daily basis and taking all necessary actions to "ease the genuine pain of citizens" with a clear intent to normalise the things as early as possible. Patel also said the RBI has announced an incremental CRR (Cash Reserve Ratio) of 100 per cent "because of the large increase in deposits of banks on account of the return of Rs 1,000 and Rs 500 notes" and the decision would be reviewed immediately once the government issues adequate quantum of MSS (Market Stablisation Scheme) bonds which they have promised to do. In an exclusive interview to PTI, Patel said the situation arising out of the decision to withdraw Rs 500/1,000 notes is being monitored on a daily basis and the printing presses have started to rebalance the production of new notes towards Rs 100 and Rs 500 bills. He also urged the people to start using cash substitutes like debit cards and digital wallets, saying it will make transactions cheaper and easier and in the long term, it will help India "leapfrog into a less cash-use economy at par with more developed nations." "We are also urging banks to make a big push with PoS (Point of Sale) machines with traders so that debit card use becomes more prevalent," he said. Giving details of the steps being taken by RBI, he said, "Both RBI and government have been getting the printing presses to work at capacity to get the new notes available to meet demand. "The RBI is interacting with the banks every day. They are telling us that the situation is gradually easing. The queues in branches and ATMs are shorter and the markets are starting to function, and there are no reported shortages of daily items of consumption. "Also, about 40-50,000 people were deployed to refit the ATMs. Currency is available and banks are working in a mission mode to lift currency and take them to their branches and ATMs. The staff members of all banks have worked very hard, and we all owe them our gratitude," Patel said. "Having said that, it is important to regularly review the situation, and taking the required decisions to ease the genuine pain of citizens who are honest and who have been hurt. There are no precedents on this subject at this scale and we have to be reactive to the situation. "People have asked why the new currency introduced was different in size and thickness from the old. This is because the new currency has been designed to make it hard to counterfeit. When you are going to make a change of this magnitude, you need to get the best standards in place," Patel said. This is the first-ever interview as RBI Governor by Patel, who is known to keep a low profile. (PTI)

Demonetisation: Trying to ease pain of citizens, says RBI chief

Terming Prime Minister Narendra Modi&#39;s demonetisation move as &quot;very bold&quot;, China&#39;s official media today said it was a &quot;gamble&quot; that would create a precedent irrespective of whether it succeeds or fails and China will draw lessons from its impact on corruption.

&quot;Modi&#39;s move is very bold. We cannot imagine what would happen in China if the country bans its 50 and 100 yuan notes,&quot; said an editorial in the state-run Global Times titled &#39;Modi takes a gamble with money reform&#39;. 100 yuan is China&#39;s highest currency note.

&quot;To prevent a leak of information jeopardising the implementation of the demonetisation reform, the roll out of the plan had to be kept confidential. Modi is in a dilemma as the reform aims to render the black money useless but the process goes against the governance principle of winning support of the public before initiating a new policy,&quot; the editorial said.

&quot;As more than 90 per cent of transactions in India are made with cash, banning 85 per cent of the currency in circulation brings a lot of trouble to people&#39;s daily life&quot; sparking fierce criticism including from &quot;former Prime Minister Manmohan Singh who termed it as organised loot&quot;, it said.

&quot;Demonetisation can crackdown on corruption and shadow economy but it is obviously unable to solve the deeper social and political issues that help breed the aforementioned problems,&quot; the editorial said.

However, it stated that as far as the root causes of corruption exist, the problems will always resurface. &quot;In other words, the Modi government wishes to turn a long and arduous reform into a one-off deal,&quot; it said.

&quot;Demonetisation is a gamble for Modi. He bet on both the execution ability of the government and the tolerance level of the Indian society, hoping that the benefits of this reform can outrun the negative social impacts and low morale,&quot; the editorial said.

It asserted that the &quot;Western-style&quot; democratic system of India allows little room for such bold moves. &quot;However, he is really carrying it out, and will create a precedent no matter he succeeds or fails,&quot; it said.

&quot;Reform is always difficult and requires more than just courage. Modi&#39;s demonetisation came with good intention but whether it can succeed depends on the efficiency of the system and the cooperation of the entire society. More and more people are growing pessimistic about the ability of Modi&#39;s government to control the process,&quot; the editorial said.

Noting that China&#39;s reform and opening-up has been going on for nearly 40 years, the editorial said it had ups and downs but remained largely stable. &quot;Its success is based on broad public support,&quot; it said.

&quot;The strong execution capabilities of the Communist Party of China are built on the consensus of the entire country. By observing India&#39;s reforms we will draw lessons, which would in turn help us understand our own reforms,&quot; it said. 
 
(PTI)

The article, which appeared in China's state-run Global Times, was titled 'Modi takes a gamble with money reform'

Terming Prime Minister Narendra Modi's demonetisation move as "very bold", China's official media today said it was a "gamble" that would create a precedent irrespective of whether it succeeds or fails and China will draw lessons from its impact on corruption. "Modi's move is very bold. We cannot imagine what would happen in China if the country bans its 50 and 100 yuan notes," said an editorial in the state-run Global Times titled 'Modi takes a gamble with money reform'. 100 yuan is China's highest currency note. "To prevent a leak of information jeopardising the implementation of the demonetisation reform, the roll out of the plan had to be kept confidential. Modi is in a dilemma as the reform aims to render the black money useless but the process goes against the governance principle of winning support of the public before initiating a new policy," the editorial said. "As more than 90 per cent of transactions in India are made with cash, banning 85 per cent of the currency in circulation brings a lot of trouble to people's daily life" sparking fierce criticism including from "former Prime Minister Manmohan Singh who termed it as organised loot", it said. "Demonetisation can crackdown on corruption and shadow economy but it is obviously unable to solve the deeper social and political issues that help breed the aforementioned problems," the editorial said. However, it stated that as far as the root causes of corruption exist, the problems will always resurface. "In other words, the Modi government wishes to turn a long and arduous reform into a one-off deal," it said. "Demonetisation is a gamble for Modi. He bet on both the execution ability of the government and the tolerance level of the Indian society, hoping that the benefits of this reform can outrun the negative social impacts and low morale," the editorial said. It asserted that the "Western-style" democratic system of India allows little room for such bold moves. "However, he is really carrying it out, and will create a precedent no matter he succeeds or fails," it said. "Reform is always difficult and requires more than just courage. Modi's demonetisation came with good intention but whether it can succeed depends on the efficiency of the system and the cooperation of the entire society. More and more people are growing pessimistic about the ability of Modi's government to control the process," the editorial said. Noting that China's reform and opening-up has been going on for nearly 40 years, the editorial said it had ups and downs but remained largely stable. "Its success is based on broad public support," it said. "The strong execution capabilities of the Communist Party of China are built on the consensus of the entire country. By observing India's reforms we will draw lessons, which would in turn help us understand our own reforms," it said. (PTI)

Demonetisation: Modi's 'gamble' will set precedent, says Chinese media

Total deposits in Jan Dhan accounts have increased to Rs 64,252.15 crore, with Uttar Pradesh leading the chart with Rs 10,670.62 crore deposits followed by West Bengal and Rajasthan, the government said today.

The government&nbsp;also stressed that no public sector banks had given any instructions to their officials to deposit Re 1 or 2 to avoid zero balance in Jan Dhan accounts.

&quot;As on November 16, 25.58 crore accounts with aggregate deposits of Rs 64,252.15 crore have been opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) across the country,&quot; Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.

Leading the pack of states, Uttar Pradesh has the highest number of account holders to the tune of 3.79 crore and therefore highest deposits of Rs 10,670.62 crore. It is followed by West Bengal with 2.44 accounts and deposits of Rs 7,826.44 crore.

Rajasthan comes at the third spot with 1.89 crore accounts and the deposit in these accounts totals to Rs 5,345.57 crore while Bihar with 2.62 crore accounts have deposits of Rs 4,912.79 crore as of 16 November.

Out of 25.58 crore accounts, 5.98 crore (23.02 per cent) are zero balance accounts, he said.

&quot;All public sector banks have denied giving any instructions to deposit Re 1 to 2 in the zero balance accounts,&quot; he said.

&quot;Banks have been asked to ensure linkage of all PMJDY accounts with Aadhaar number in a time-bound manner. PMJDY envisages channelising all government benefits to thebeneficiaries to all accounts opened under the Yojana and thus trying to bring down the zero balance in such accounts by transferring Direct Benefit Transfer (DBT),&quot; he said.

In reply to a separate question, Minister of State for Finance Arjun Ram Meghwal said the currency in circulation as on 11 November is Rs 17.87 lakh crore.

RBI presses printed 2,119.5 crore pieces of bank notes during 2015-16 as against 2,365.2 crore pieces in the previous fiscal, Meghwal said.

During 2015-16, 429.1 crore pieces were Rs 500 notes and 97.7 crore pieces of Rs 1,000 were printed as compared to 501.8 crore pieces, 105.2 crore pieces, respectively in the previous fiscal.

Replying to another question, Meghwal said introduction of new series of bank notes in various denominations which are distinctly different in terms of look, design, size and colour has already been approved by the government.

The new banknotes in denominations of Rs 2,000 and Rs 500 are already in circulation and other denomination banknotes will also be circulated in due course, he said.

(PTI)

Uttar Pradesh noted the highest deposits of Rs 10,670.62 crores followed by West Bengal and Rajasthan

Total deposits in Jan Dhan accounts have increased to Rs 64,252.15 crore, with Uttar Pradesh leading the chart with Rs 10,670.62 crore deposits followed by West Bengal and Rajasthan, the government said today. The government also stressed that no public sector banks had given any instructions to their officials to deposit Re 1 or 2 to avoid zero balance in Jan Dhan accounts. "As on November 16, 25.58 crore accounts with aggregate deposits of Rs 64,252.15 crore have been opened under Pradhan Mantri Jan Dhan Yojana (PMJDY) across the country," Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha. Leading the pack of states, Uttar Pradesh has the highest number of account holders to the tune of 3.79 crore and therefore highest deposits of Rs 10,670.62 crore. It is followed by West Bengal with 2.44 accounts and deposits of Rs 7,826.44 crore. Rajasthan comes at the third spot with 1.89 crore accounts and the deposit in these accounts totals to Rs 5,345.57 crore while Bihar with 2.62 crore accounts have deposits of Rs 4,912.79 crore as of 16 November. Out of 25.58 crore accounts, 5.98 crore (23.02 per cent) are zero balance accounts, he said. "All public sector banks have denied giving any instructions to deposit Re 1 to 2 in the zero balance accounts," he said. "Banks have been asked to ensure linkage of all PMJDY accounts with Aadhaar number in a time-bound manner. PMJDY envisages channelising all government benefits to thebeneficiaries to all accounts opened under the Yojana and thus trying to bring down the zero balance in such accounts by transferring Direct Benefit Transfer (DBT)," he said. In reply to a separate question, Minister of State for Finance Arjun Ram Meghwal said the currency in circulation as on 11 November is Rs 17.87 lakh crore. RBI presses printed 2,119.5 crore pieces of bank notes during 2015-16 as against 2,365.2 crore pieces in the previous fiscal, Meghwal said. During 2015-16, 429.1 crore pieces were Rs 500 notes and 97.7 crore pieces of Rs 1,000 were printed as compared to 501.8 crore pieces, 105.2 crore pieces, respectively in the previous fiscal. Replying to another question, Meghwal said introduction of new series of bank notes in various denominations which are distinctly different in terms of look, design, size and colour has already been approved by the government. The new banknotes in denominations of Rs 2,000 and Rs 500 are already in circulation and other denomination banknotes will also be circulated in due course, he said. (PTI)

Demonetisation: Deposits in Jan Dhan accounts rise to Rs 64,250 crore

The Indian government is planning to introduce amendments to the Income Tax Act in the ongoing session of Parliament which will attract a minimum of 50 per cent tax on unaccounted bank deposits made in scrapped currency noted up to December 30, if declared to taxmen.&nbsp;

Sources told PTI, the proposal could also include a lock-in period of 4 years for half of the remaining amount, or 25 per cent of the original deposit.&nbsp;

In case the assessees do not disclose the unaccounted cash voluntarily and the money is detected by tax authorities, it will be charged with 60 per cent tax and a longer lock-in period, the sources added.

The amendments to the Income Tax Act were approved by the Cabinet last night and will now be presented in the Parliament, sources said.&nbsp;

Earlier, the tax authorities were considering levying a peak rate of tax and an added 200 per cent penalty on unexplained deposits above Rs 2.5 lakh. But they felt that such a move may not have legal backing.&nbsp;

This week, the government had ended the over-the-counter exchange of old currency notes at the banks, in an effort to encourage the people to make deposits to their bank accounts. All old Rs 500 and Rs 1,000 notes can be deposited in bank accounts without any ceiling.&nbsp;

The government had allowed a 50-day window from November 10 to December 30 to deposit the banned currency in bank accounts.&nbsp;

(WION with inputs from PTI)

&nbsp;

The government is expected to present the proposed amendments to the Income Tax Act in the ongoing session of Parliament

The Indian government is planning to introduce amendments to the Income Tax Act in the ongoing session of Parliament which will attract a minimum of 50 per cent tax on unaccounted bank deposits made in scrapped currency noted up to December 30, if declared to taxmen. Sources told PTI, the proposal could also include a lock-in period of 4 years for half of the remaining amount, or 25 per cent of the original deposit. In case the assessees do not disclose the unaccounted cash voluntarily and the money is detected by tax authorities, it will be charged with 60 per cent tax and a longer lock-in period, the sources added. The amendments to the Income Tax Act were approved by the Cabinet last night and will now be presented in the Parliament, sources said. Earlier, the tax authorities were considering levying a peak rate of tax and an added 200 per cent penalty on unexplained deposits above Rs 2.5 lakh. But they felt that such a move may not have legal backing. This week, the government had ended the over-the-counter exchange of old currency notes at the banks, in an effort to encourage the people to make deposits to their bank accounts. All old Rs 500 and Rs 1,000 notes can be deposited in bank accounts without any ceiling. The government had allowed a 50-day window from November 10 to December 30 to deposit the banned currency in bank accounts. (WION with inputs from PTI)

Demonetisation: Unaccounted deposits could attract 50 per cent tax, four year lock-in period

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