Minister of State in the Prime Minister&#39;s Office Jitendra Singh has said the Union Government is contemplating to merge Jan Dhan, Aadhar and smartphones for boosting the country&#39;s economy and for easy transfer of money.

&quot;In a few years, the mindset of the common masses would have a drastic change to adopt the digital technologies,&quot; he said while speaking on the occasion of a Digi Dhan mela, a Government of India initiative, aimed at incentivising digitally enabled transformation in the country following the recent demonetisation drive.

Singh emphasised the need for digitisation in the country for easy transfer of money. Digitisation will pave the way for a new revolution in which paper currency will be replaced by digital transactions thus proving beneficial to curb black money, he added.

Minister of State for finance Arjun Ram Meghwal, who was also present on the occasion, said the menace of the shadow economy will be curbed by the adoption of digitisation in the country.

Jammu and Kashmir chief minister Mehbooba Mufti, Jammu and Kashmir finance minister Haseeb Drabu, Jammu and Kashmir Information Technology minister Imran Raza Ansari and other dignitaries were also present on the occasion held at Gulshan Ground, Gandhi Nagar, Jammu, on Tuesday.

At the event, a huge public participation was seen thronging different stalls put up by various banks, telecom companies, Aadhar and different departments of the state government to gather first-hand information about various digital schemes of the Government of India.&nbsp;

(ANI)&nbsp;

Minister of State Jitendra Singh, speaking at the Digi Dhan mela, emphasised the need for digitisation in India for easy transfer of money

Minister of State in the Prime Minister's Office Jitendra Singh has said the Union Government is contemplating to merge Jan Dhan, Aadhar and smartphones for boosting the country's economy and for easy transfer of money. "In a few years, the mindset of the common masses would have a drastic change to adopt the digital technologies," he said while speaking on the occasion of a Digi Dhan mela, a Government of India initiative, aimed at incentivising digitally enabled transformation in the country following the recent demonetisation drive. Singh emphasised the need for digitisation in the country for easy transfer of money. Digitisation will pave the way for a new revolution in which paper currency will be replaced by digital transactions thus proving beneficial to curb black money, he added. Minister of State for finance Arjun Ram Meghwal, who was also present on the occasion, said the menace of the shadow economy will be curbed by the adoption of digitisation in the country. Jammu and Kashmir chief minister Mehbooba Mufti, Jammu and Kashmir finance minister Haseeb Drabu, Jammu and Kashmir Information Technology minister Imran Raza Ansari and other dignitaries were also present on the occasion held at Gulshan Ground, Gandhi Nagar, Jammu, on Tuesday. At the event, a huge public participation was seen thronging different stalls put up by various banks, telecom companies, Aadhar and different departments of the state government to gather first-hand information about various digital schemes of the Government of India. (ANI)

India: Government to merge Jan Dhan, Aadhar and smartphones for boosting economy

The meeting organised by the Indian National Congress in Delhi against demonetisation wasn&rsquo;t without significance. First, a major function was organised in absence of&nbsp;Congress president Sonia Gandhi and secondly Congress chose the death anniversary of late Prime Minister Lal Bahadur Shastri as the day to organise the function.

Only Indira Gandhi and Lal Bahadur Shastri&rsquo;s photographs were put on the dais.

Indira Gandhi had given the slogan, &rdquo;Mein kahti hun garibi hatao aur vo kehte hain mujhe hatao,&rdquo; and Shastri gave the famous slogan &rdquo;Jai Jawan and Jai Kisan.&rdquo; Sources say that the imagery goes well with the anti-demonetisation drive of the Congress Party as BJP would find it difficult to pin Congress down on Shastri. And Sonia&rsquo;s absence would give Rahul ample space to engage the public&rsquo;s mind.

Congress vice-president Rahul Gandhi attacked the government on the ground that it was&nbsp;a personal decision of Narendra Modi. &ldquo;We didn&rsquo;t do it because we felt that it would give the desired dividends,&rdquo; said Rahul Gandhi. He also said that Congress did not once interfere&nbsp;in&nbsp;the functioning of the Reserve Bank of India.

&ldquo;Achhe din are only going to come when the Congress party is going to come back to power,&rdquo; said Rahul Gandhi. The Congress vice-president also said that media is being constrained under the Modi regime. &ldquo;Media also have the responsibility to show what people are going through because of demonetisation,&rdquo; said Rahul Gandhi. He also took the jibe at media by saying,&rdquo; Maybe, we respected the press too much.&rdquo;

The Congress also alleged that they wanted to organise a bigger function but could not because a&nbsp;bigger auditorium wasn&rsquo;t leased out to them.

The Congress vice-president called Ramdev and Bhogle as homemade economists whose decisions the Prime Minister enforced. Congress has decided to make demonetisation a major theme in the forthcoming state Assembly elections.

The same strategy is being deployed by BJP which has linked demonetisation with an&nbsp;anti-corruption drive. In the end, Rahul Gandhi also accused RSS of running the government by saying that only Mohan Bhagwat and Modi are running the government.

&nbsp;

The meeting was significant because it was organised in the absence of Sonia Gandhi and it marked Lal Bahadur Shastri's death anniversary

The meeting organised by the Indian National Congress in Delhi against demonetisation wasn’t without significance. First, a major function was organised in absence of Congress president Sonia Gandhi and secondly Congress chose the death anniversary of late Prime Minister Lal Bahadur Shastri as the day to organise the function. Only Indira Gandhi and Lal Bahadur Shastri’s photographs were put on the dais. Indira Gandhi had given the slogan, ”Mein kahti hun garibi hatao aur vo kehte hain mujhe hatao,” and Shastri gave the famous slogan ”Jai Jawan and Jai Kisan.” Sources say that the imagery goes well with the anti-demonetisation drive of the Congress Party as BJP would find it difficult to pin Congress down on Shastri. And Sonia’s absence would give Rahul ample space to engage the public’s mind. Congress vice-president Rahul Gandhi attacked the government on the ground that it was a personal decision of Narendra Modi. “We didn’t do it because we felt that it would give the desired dividends,” said Rahul Gandhi. He also said that Congress did not once interfere in the functioning of the Reserve Bank of India. “Achhe din are only going to come when the Congress party is going to come back to power,” said Rahul Gandhi. The Congress vice-president also said that media is being constrained under the Modi regime. “Media also have the responsibility to show what people are going through because of demonetisation,” said Rahul Gandhi. He also took the jibe at media by saying,” Maybe, we respected the press too much.” The Congress also alleged that they wanted to organise a bigger function but could not because a bigger auditorium wasn’t leased out to them. The Congress vice-president called Ramdev and Bhogle as homemade economists whose decisions the Prime Minister enforced. Congress has decided to make demonetisation a major theme in the forthcoming state Assembly elections. The same strategy is being deployed by BJP which has linked demonetisation with an anti-corruption drive. In the end, Rahul Gandhi also accused RSS of running the government by saying that only Mohan Bhagwat and Modi are running the government.

India: Congress remembers Shastri in Sonia's absence, targets Modi and RSS

Inflation in India is expected to have cooled to a two-year low in December as the government&#39;s surprise currency crackdown rattled the economy and severely hurt consumption, a Reuters poll found.

Retail inflation likely eased to 3.57 per cent from a year earlier, from 3.63 per cent in November, the poll of over 30 economists showed.

That would be the lowest since November 2014, and well below the Reserve Bank of India&#39;s near-term target of 5 per cent by March 2017.

Prime Minister Narendra Modi&#39;s decision on November 8 to outlaw high-value banknotes, aimed at curbing corruption and tax evasion, has forced the nation&#39;s 1.2 billion people to scramble to exchange old notes for new and left many companies&#39; cash-reliant supply chains in tatters.

The government insists the impact from the move will be short-lived, but many private economists are trimming their GDP forecasts, reckoning it will linger for one more year.

&quot;We expect headline CPI inflation to fall, primarily due to a significant sequential fall in the prices of several food items and many other perishables on account of the cash crunch created by demonetisation,&quot; said Rupa Rege Nitsure, group chief economist at L&amp;T Financial Services in Mumbai.

India&#39;s central bank unexpectedly left its repo rate unchanged at 6.25 per cent last month, saying the blow from the cash squeeze may be transitory and expressing concern over the rising risk of inflation from higher global oil prices.

If inflation remains below the near-term target, it will give the central bank room to make a rate cut at its next meeting on February 8.

Industrial output likely accelerated 1.3 per cent in November from a year ago, after falling 1.9 per cent in October, the poll also forecast.

&quot;The impact of the demonetisation drive will be better reflected in weak December readings,&quot; wrote Radhika Rao, an&nbsp;economist at DBS Bank, in a note.

&quot;Subdued capital goods output is likely to be accompanied by a slow patch in consumer durables and non-durables production as inventories build on slower demand.&quot;

Wholesale price inflation is expected to have picked up last month to 3.50 per cent from 3.15 per cent in November, according to the poll.

(Reuters)

Retail inflation likely eased to 3.57 per cent from a year earlier, from 3.63 per cent in November, the poll of over 30 economists showed

Inflation in India is expected to have cooled to a two-year low in December as the government's surprise currency crackdown rattled the economy and severely hurt consumption, a Reuters poll found. Retail inflation likely eased to 3.57 per cent from a year earlier, from 3.63 per cent in November, the poll of over 30 economists showed. That would be the lowest since November 2014, and well below the Reserve Bank of India's near-term target of 5 per cent by March 2017. Prime Minister Narendra Modi's decision on November 8 to outlaw high-value banknotes, aimed at curbing corruption and tax evasion, has forced the nation's 1.2 billion people to scramble to exchange old notes for new and left many companies' cash-reliant supply chains in tatters. The government insists the impact from the move will be short-lived, but many private economists are trimming their GDP forecasts, reckoning it will linger for one more year. "We expect headline CPI inflation to fall, primarily due to a significant sequential fall in the prices of several food items and many other perishables on account of the cash crunch created by demonetisation," said Rupa Rege Nitsure, group chief economist at L&T Financial Services in Mumbai. India's central bank unexpectedly left its repo rate unchanged at 6.25 per cent last month, saying the blow from the cash squeeze may be transitory and expressing concern over the rising risk of inflation from higher global oil prices. If inflation remains below the near-term target, it will give the central bank room to make a rate cut at its next meeting on February 8. Industrial output likely accelerated 1.3 per cent in November from a year ago, after falling 1.9 per cent in October, the poll also forecast. "The impact of the demonetisation drive will be better reflected in weak December readings," wrote Radhika Rao, an economist at DBS Bank, in a note. "Subdued capital goods output is likely to be accompanied by a slow patch in consumer durables and non-durables production as inventories build on slower demand." Wholesale price inflation is expected to have picked up last month to 3.50 per cent from 3.15 per cent in November, according to the poll. (Reuters)

India: Inflation seen cooling to two-year low in December as cash crunch hit demand

In a move that is bound to add some hurdles in commuting activities, the All India Petroleum Dealers Association has announced that petrol bunks across the country will stop accepting debit and credit cards effective from Sunday midnight.

The announcement, which has come in the wake of banks levying a 1% transaction fee on card payments across all petrol pumps, will cause inconvenience to customers already experiencing cash shortages following the government&#39;s demonetisation move.

All India Petroleum Dealers Association (AIPDA) president Ajay Bansal told the media that all pump owners are firm in their decision to withdraw card swipe machines from intervening midnight of Sunday and Monday.

&ldquo;We are operating on a very thin margin. We cannot afford this deduction. Hence we have no other go than stop accepting debit and credit cards,&rdquo; Bansal said. When pointed that the dealers are going against government directions, Bansal said they have no other option. Bansal said the decision to stop accepting debit and credit cards had been conveyed to petroleum ministry and finance ministry officials, he said.

ICICI Bank, HDFC Bank and Axis Bank sent notices to dealers on Saturday night to inform them about the surcharge. Following this, on Sunday, the Tamil Nadu Petroleum Dealers Association said it has received an intimation from banks about the 1% charge and has announced that it will not accept plastic money in protest of this move.

&quot;We have suddenly received intimation from the bankers, reneging on their existing agreements with us, and for having decided to levy a Merchant Discount Rate (MDR) of 1% plus taxes on all transactions done at our outlets,&quot; KP Murali, President of the Association, said. This move was a &#39;unilateral&#39; one by bankers who had installed card swipe machines at the fuel outlets, he added.

Protesting the move, Murali said their margins were fixed on a per kilolitre (KL) basis and that they did not have scope to absorb these charges. &quot;We have specific mechanisms to compute the margin and these do not have any scope for Credit/Debit card MDR. This will lead to financial losses for the dealers,&quot; he said. Further, bankers were also &quot;delaying payments&quot; and not settling the entire dues, he alleged.

&quot;The reconciliation of swipes to amount being credited to our accounts is causing a lot of hardships and losses to a large percentage of the dealer community,&quot; he said in a statement. &quot;We will not be able to withstand the financial losses generated by these transactions and have decided to stop accepting Credit/Debit Cards from January 9, 2017,&quot; he added. Hyder Ali, the association General Secretary, asked, &quot;How can we do our business with losses?&quot; Murali said the dealers have requested Oil Marketing Companies and various authorities to intervene and address the situation.

Meanwhile, the announcement prompted the city motorists to rush to fuel outlets to fill their vehicle tanks by making payments through Debit and credit cards. Many motorists felt this will add to their difficulties with few ATMs dispensing cash due to demonetisation.

(PTI)

The announcement has come in the wake of banks levying a 1% transaction fee on card payments across all petrol pumps

In a move that is bound to add some hurdles in commuting activities, the All India Petroleum Dealers Association has announced that petrol bunks across the country will stop accepting debit and credit cards effective from Sunday midnight. The announcement, which has come in the wake of banks levying a 1% transaction fee on card payments across all petrol pumps, will cause inconvenience to customers already experiencing cash shortages following the government's demonetisation move. All India Petroleum Dealers Association (AIPDA) president Ajay Bansal told the media that all pump owners are firm in their decision to withdraw card swipe machines from intervening midnight of Sunday and Monday. “We are operating on a very thin margin. We cannot afford this deduction. Hence we have no other go than stop accepting debit and credit cards,” Bansal said. When pointed that the dealers are going against government directions, Bansal said they have no other option. Bansal said the decision to stop accepting debit and credit cards had been conveyed to petroleum ministry and finance ministry officials, he said. ICICI Bank, HDFC Bank and Axis Bank sent notices to dealers on Saturday night to inform them about the surcharge. Following this, on Sunday, the Tamil Nadu Petroleum Dealers Association said it has received an intimation from banks about the 1% charge and has announced that it will not accept plastic money in protest of this move. "We have suddenly received intimation from the bankers, reneging on their existing agreements with us, and for having decided to levy a Merchant Discount Rate (MDR) of 1% plus taxes on all transactions done at our outlets," KP Murali, President of the Association, said. This move was a 'unilateral' one by bankers who had installed card swipe machines at the fuel outlets, he added. Protesting the move, Murali said their margins were fixed on a per kilolitre (KL) basis and that they did not have scope to absorb these charges. "We have specific mechanisms to compute the margin and these do not have any scope for Credit/Debit card MDR. This will lead to financial losses for the dealers," he said. Further, bankers were also "delaying payments" and not settling the entire dues, he alleged. "The reconciliation of swipes to amount being credited to our accounts is causing a lot of hardships and losses to a large percentage of the dealer community," he said in a statement. "We will not be able to withstand the financial losses generated by these transactions and have decided to stop accepting Credit/Debit Cards from January 9, 2017," he added. Hyder Ali, the association General Secretary, asked, "How can we do our business with losses?" Murali said the dealers have requested Oil Marketing Companies and various authorities to intervene and address the situation. Meanwhile, the announcement prompted the city motorists to rush to fuel outlets to fill their vehicle tanks by making payments through Debit and credit cards. Many motorists felt this will add to their difficulties with few ATMs dispensing cash due to demonetisation. (PTI)

India: Petrol pumps won't accept card payments from Monday in protest against transaction fees

India&#39;s ruling Bharatiya Janata Party on Saturday termed demonetisation as a &quot;sacred movement&quot; that was supported by the masses and said that the deposition of black money will lead to &quot;bigger and cleaner GDP&quot;.

The economic resolution passed at the party&#39;s national executive meeting accused the opposition of trying to discredit the government by criticising the move that was aimed at the &quot;poor&#39;s welfare&quot;.

&quot;In this sacred movement across the country, the common people were taking upon themselves the temporary suffering of standing in queues with full enthusiasm and positive energy, but the Opposition had become negative with destructive energy to defame the central government and trying to destroy the positive environment of the country,&quot; the resolution said.

India&#39;s finance minister Arun Jaitley asserted that black money has been returned to the banks because of the currency reform and will lead to development.

&quot;Black money has been deposited in the banks. It has lost its anonymity. The informal economy will now increasingly integrate with the formal economy. This will lead to higher revenues with the States and the Centre. It will lead to the bigger and the cleaner GDP,&quot; the resolution said.

Jaitley also claimed that state revenues had not suffered, citing figures, and in states of Uttar Pradesh and Madhya Pradesh numbers had even increased.

The resolution said demonetisation was necessary for decimating the parallel economy of black money and for the smooth functioning of the GST in near future.

BJP supported Prime Minister Narendra Modi&#39;s decision at the meeting. BJP&#39;s &#39;Kisan Morcha&#39; (farmer wing of BJP) chief Virendra Singh Mast claimed that wasteful expenditure by farmers was reduced due to demonetisation. The opposition claims that farmers have suffered the most due to cash crunch.

Union minister Nirmala Sitharaman termed the decision as &quot;bold and historic decision&quot;.

&quot;The Rs 500 and Rs 1000 notes hidden in mattresses, something people would say symbolically, is now in bank accounts. It will help development,&quot; she said.

The ruling party claimed positive reaction towards demonetisation, quoting surveys. 
&quot;This is reflected in the fact that even after 50 days, there was not a single major incident in the country. There was no loss of public property and there was no loss of people&#39;s patience anywhere in the country.&quot;

BJP dismissed allegations that demonetisation was an abrupt decision, claiming that the resolution was taken with full-fledged preparations.&nbsp;

Listing the government&#39;s efforts to curb black money leading to demonetization, the resolution cited constitution of a SIT, introduction of Income Declaration Scheme, Jan Dhan Scheme, Black Money Act, Bankruptcy Insolvency Law, DRT Amendment Law and Benami Property Act, Press trust of India reported.

The party named various efforts by the government to promote a cashless, corruption free India through UPI, USSD, AEPS and Rupay Card.

&quot;The BJP firmly believes that digital economy will stop the leakage of taxes. This Government has ended any role of middlemen from its beneficiary schemes like MNREGA, financial assistance to poor students, subsidies to marginal sections including SC/ST/OBC through digital transactions and Direct Benefit Transfers,&quot; the resolution said.

(WION with inputs from PTI)

Wasteful expenditure by farmers was reduced due to demonetisation, says party's farmer wing chief

India's ruling Bharatiya Janata Party on Saturday termed demonetisation as a "sacred movement" that was supported by the masses and said that the deposition of black money will lead to "bigger and cleaner GDP". The economic resolution passed at the party's national executive meeting accused the opposition of trying to discredit the government by criticising the move that was aimed at the "poor's welfare". "In this sacred movement across the country, the common people were taking upon themselves the temporary suffering of standing in queues with full enthusiasm and positive energy, but the Opposition had become negative with destructive energy to defame the central government and trying to destroy the positive environment of the country," the resolution said. India's finance minister Arun Jaitley asserted that black money has been returned to the banks because of the currency reform and will lead to development. "Black money has been deposited in the banks. It has lost its anonymity. The informal economy will now increasingly integrate with the formal economy. This will lead to higher revenues with the States and the Centre. It will lead to the bigger and the cleaner GDP," the resolution said. Jaitley also claimed that state revenues had not suffered, citing figures, and in states of Uttar Pradesh and Madhya Pradesh numbers had even increased. The resolution said demonetisation was necessary for decimating the parallel economy of black money and for the smooth functioning of the GST in near future. BJP supported Prime Minister Narendra Modi's decision at the meeting. BJP's 'Kisan Morcha' (farmer wing of BJP) chief Virendra Singh Mast claimed that wasteful expenditure by farmers was reduced due to demonetisation. The opposition claims that farmers have suffered the most due to cash crunch. Union minister Nirmala Sitharaman termed the decision as "bold and historic decision". "The Rs 500 and Rs 1000 notes hidden in mattresses, something people would say symbolically, is now in bank accounts. It will help development," she said. The ruling party claimed positive reaction towards demonetisation, quoting surveys. "This is reflected in the fact that even after 50 days, there was not a single major incident in the country. There was no loss of public property and there was no loss of people's patience anywhere in the country." BJP dismissed allegations that demonetisation was an abrupt decision, claiming that the resolution was taken with full-fledged preparations. Listing the government's efforts to curb black money leading to demonetization, the resolution cited constitution of a SIT, introduction of Income Declaration Scheme, Jan Dhan Scheme, Black Money Act, Bankruptcy Insolvency Law, DRT Amendment Law and Benami Property Act, Press trust of India reported. The party named various efforts by the government to promote a cashless, corruption free India through UPI, USSD, AEPS and Rupay Card. "The BJP firmly believes that digital economy will stop the leakage of taxes. This Government has ended any role of middlemen from its beneficiary schemes like MNREGA, financial assistance to poor students, subsidies to marginal sections including SC/ST/OBC through digital transactions and Direct Benefit Transfers," the resolution said. (WION with inputs from PTI)

Reaction to demonetisation positive as not single major incident of violence reported: BJP at its executive meet

Indian Prime Minister Narendra Modi&#39;s crackdown on the cash economy has shattered the consensus needed for a new national sales tax, plunging his boldest reform into limbo and threatening to entrench an economic slowdown.

Modi&#39;s government already had its work cut out to finalise a deal with India&#39;s 29 federal states to launch a Goods and Services Tax (GST) on April 1 that would transform Asia&#39;s third largest economy into a single market for the first time.

But his decision to scrap 86 per cent of the cash in circulation, in a bid to purge the economy of illicit &quot;black money&quot;, has caused huge disruption.

A slump in business activity stemming from the cash crunch has caused the revenue of state governments, which collect value-added tax on goods and other duties, to slump by 25-40 per cent. The states won&#39;t risk another setback by rushing the sales tax into force.

&quot;The investment and economic environment in the country is in bad shape,&quot; said West Bengal finance minister Amit Mitra, who earlier head a panel tasked with building a consensus on the GST. &quot;How is the country going to absorb the dual shock of GST and demonetisation?&quot;

The GST is India&#39;s biggest tax overhaul since independence in 1947. It would replace a plethora of federal and state levies with one tax, easing compliance, broadening the revenue base and boosting productivity.

It took Modi more than two years to forge a political compromise on the tax in August. Now, demonetisation &quot;has created a trust deficit,&quot; said Kerala finance minister TM&nbsp;Thomas Isaac. &quot;After this, I am not going to sit and compromise. They don&#39;t deserve it.&quot;

&nbsp;

Left in the lurch

Failure to break the deadlock could tip India into a fiscal crisis: The GST would need to come into effect by mid-September&nbsp;when the old system of indirect taxation is due to lapse. The lingering uncertainty is worrying companies needing to understand financial implications of the new tax.

&quot;With so many vital details still missing, they are feeling left in the lurch,&quot; said Saloni Roy, a senior director at Deloitte.

Modi&#39;s shock move last month to scrap 500 and 1,000 rupee notes was aimed at India&#39;s shadow economy. But the ensuing cash crunch has caused job losses, disrupted supply chains and slowed construction activity.

With cash shortages showing no signs of abating, some economists are calling for emergency stimulus to cushion the economy against the impact of demonetisation.

Ambit Capital, a Mumbai brokerage, forecasts growth this fiscal year will be only half of the roughly 7 per cent level many expect. The Reserve Bank of India has shaved its growth outlook by half a percentage point to 7.1 per cent. To make up for their losses, states are seeking compensation and will press their case at a meeting in New Delhi on Thursday and Friday with Finance Minister Arun Jaitley.

He has already agreed to cover states&#39; revenue losses for five years after the GST&#39;s launch, but further concessions would narrow his room for manoeuvre in his annual budget presented in February.

One top finance ministry official dismissed demands for compensation for demonetisation as unreasonable. But states are adamant. &quot;They have brought it upon us,&quot; V&nbsp;Narayanasamy, chief minister of Puducherry, told Reuters. &quot;Now they must pay for our loss.&quot;

&nbsp;

Counting costs

The quibble is not just over lost revenue. Some states worry about the social and political costs of demonetisation.

Take Kerala, where credit cooperatives that farmers and retired government workers rely on cannot swap old bills or issue fresh notes. The state alleges this has encouraged commercial banks to scout for their deposits, sparking a &quot;run&quot; on them.

Odhisa&#39;s chief minister has written to Modi, saying curbs imposed on primary agriculture societies were making it difficult for farmers to access crop loans and procurement payments.

With the states smarting, they have hardened their stance on how to collect the new GST, which will have federal and state elements.

They want sole control over businesses with annual turnover of 15 million rupees ($220,000) and so-called &quot;dual control&quot; over bigger firms. Jaitley opposes this, fearing tax collectors could end up at cross purposes.

&quot;We reached this far because states were willing to compromise,&quot; said Isaac, Kerala&#39;s finance minister, told Reuters. &quot;If they want the GST, they will have to now concede to the states.&quot;

(Reuters)

A slump in business activity stemming from the cash crunch has caused the revenue of state governments to slump by 25-40 per cent

Indian Prime Minister Narendra Modi's crackdown on the cash economy has shattered the consensus needed for a new national sales tax, plunging his boldest reform into limbo and threatening to entrench an economic slowdown. Modi's government already had its work cut out to finalise a deal with India's 29 federal states to launch a Goods and Services Tax (GST) on April 1 that would transform Asia's third largest economy into a single market for the first time. But his decision to scrap 86 per cent of the cash in circulation, in a bid to purge the economy of illicit "black money", has caused huge disruption. A slump in business activity stemming from the cash crunch has caused the revenue of state governments, which collect value-added tax on goods and other duties, to slump by 25-40 per cent. The states won't risk another setback by rushing the sales tax into force. "The investment and economic environment in the country is in bad shape," said West Bengal finance minister Amit Mitra, who earlier head a panel tasked with building a consensus on the GST. "How is the country going to absorb the dual shock of GST and demonetisation?" The GST is India's biggest tax overhaul since independence in 1947. It would replace a plethora of federal and state levies with one tax, easing compliance, broadening the revenue base and boosting productivity. It took Modi more than two years to forge a political compromise on the tax in August. Now, demonetisation "has created a trust deficit," said Kerala finance minister TM Thomas Isaac. "After this, I am not going to sit and compromise. They don't deserve it." Left in the lurch Failure to break the deadlock could tip India into a fiscal crisis: The GST would need to come into effect by mid-September when the old system of indirect taxation is due to lapse. The lingering uncertainty is worrying companies needing to understand financial implications of the new tax. "With so many vital details still missing, they are feeling left in the lurch," said Saloni Roy, a senior director at Deloitte. Modi's shock move last month to scrap 500 and 1,000 rupee notes was aimed at India's shadow economy. But the ensuing cash crunch has caused job losses, disrupted supply chains and slowed construction activity. With cash shortages showing no signs of abating, some economists are calling for emergency stimulus to cushion the economy against the impact of demonetisation. Ambit Capital, a Mumbai brokerage, forecasts growth this fiscal year will be only half of the roughly 7 per cent level many expect. The Reserve Bank of India has shaved its growth outlook by half a percentage point to 7.1 per cent. To make up for their losses, states are seeking compensation and will press their case at a meeting in New Delhi on Thursday and Friday with Finance Minister Arun Jaitley. He has already agreed to cover states' revenue losses for five years after the GST's launch, but further concessions would narrow his room for manoeuvre in his annual budget presented in February. One top finance ministry official dismissed demands for compensation for demonetisation as unreasonable. But states are adamant. "They have brought it upon us," V Narayanasamy, chief minister of Puducherry, told Reuters. "Now they must pay for our loss." Counting costs The quibble is not just over lost revenue. Some states worry about the social and political costs of demonetisation. Take Kerala, where credit cooperatives that farmers and retired government workers rely on cannot swap old bills or issue fresh notes. The state alleges this has encouraged commercial banks to scout for their deposits, sparking a "run" on them. Odhisa's chief minister has written to Modi, saying curbs imposed on primary agriculture societies were making it difficult for farmers to access crop loans and procurement payments. With the states smarting, they have hardened their stance on how to collect the new GST, which will have federal and state elements. They want sole control over businesses with annual turnover of 15 million rupees ($220,000) and so-called "dual control" over bigger firms. Jaitley opposes this, fearing tax collectors could end up at cross purposes. "We reached this far because states were willing to compromise," said Isaac, Kerala's finance minister, told Reuters. "If they want the GST, they will have to now concede to the states." (Reuters)

India: Demonetisation imperils crucial national tax reform

The Reserve Bank of India has imposed restrictions on the amount of scrapped 500 and 1,000 rupee notes that can be deposited in bank accounts, news agency Press Trust of India reports.

RBI said on Monday old notes exceeding Rs 5,000 can be deposited only once per account till December 30. It said that the depositor will also have to give an explanation as to why the old notes were not deposited earlier, according to PTI.&nbsp;

RBI added that the explanation should be kept on record to facilitate an audit trail at a later stage.&nbsp;

Further, RBI said that even if deposits are below Rs 5,000, if the cumulative deposit exceeds Rs 5000, &quot;they may be subject to the procedure to be followed in case of tenders above Rs 5000&quot;.&nbsp;

RBI also said that deposits above Rs 5,000 can be credited only into KYC-compliant accounts and &quot;if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts&quot;, PTI reports.

However, RBI has said that the restrictions shall not apply to deposits under the Pradhan Mantri Garib Kalyan scheme, 2016.

&quot;It has been decided to place certain restrictions on deposits of specified bank notes into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016,&quot; RBI said in a notification.

Under the scheme, black money holders can deposit unaccounted cash in an account which will be subject to 50 per cent tax, which breaks down into 30% tax, 33% surcharge and 10% penalty, and 4-year interest-free lock-in for the remaining 25 per cent of the amount.

(WION with inputs from PTI)

The RBI said people will also have to explain why the demonetised 500- and 1,000-rupee notes have not been deposited so far

The Reserve Bank of India has imposed restrictions on the amount of scrapped 500 and 1,000 rupee notes that can be deposited in bank accounts, news agency Press Trust of India reports. RBI said on Monday old notes exceeding Rs 5,000 can be deposited only once per account till December 30. It said that the depositor will also have to give an explanation as to why the old notes were not deposited earlier, according to PTI. RBI added that the explanation should be kept on record to facilitate an audit trail at a later stage. Further, RBI said that even if deposits are below Rs 5,000, if the cumulative deposit exceeds Rs 5000, "they may be subject to the procedure to be followed in case of tenders above Rs 5000". RBI also said that deposits above Rs 5,000 can be credited only into KYC-compliant accounts and "if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts", PTI reports. However, RBI has said that the restrictions shall not apply to deposits under the Pradhan Mantri Garib Kalyan scheme, 2016. "It has been decided to place certain restrictions on deposits of specified bank notes into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016," RBI said in a notification. Under the scheme, black money holders can deposit unaccounted cash in an account which will be subject to 50 per cent tax, which breaks down into 30% tax, 33% surcharge and 10% penalty, and 4-year interest-free lock-in for the remaining 25 per cent of the amount. (WION with inputs from PTI)

Demonetisation: Old notes worth more than Rs 5,000 can now be deposited only once till Dec 30

India&#39;s scrapping of high-value bank notes last month has dragged down economic growth in&nbsp;neighbouring Nepal with trade, remittances and tourist numbers all down, BMI Research, a group&nbsp;company of the Fitch rating agency, said on Wednesday.

BMI has revised down its forecast for land-locked Nepal&#39;s economy, saying that India&#39;s&nbsp;demonetisation could shave Nepal&#39;s growth down to 2.2 per cent for this fiscal year to July 2017,&nbsp;from an earlier estimate of 2.5 per cent.

Nepal&#39;s $21 billion economy was already suffering with growth at less than 0.8 per cent in the 2015-16 fiscal year after earthquakes in 2015 that killed about 9,000 people.

&quot;The disruption in funds from India is likely to weigh on ongoing reconstruction efforts,&quot; the&nbsp;research agency said in a report, adding that Nepal&#39;s economy was heavily reliant on India for&nbsp;trade, jobs and aid.

The announcement by prime minister Narendra Modi on November 8 to ban 500- and 1,000-rupee notes was&nbsp;intended to flush out billions of dollars in unaccounted wealth and hit the finances of militants&nbsp;suspected of using fake currency.

The Nepal Rastra Bank, the central bank, has now banned Indian currency, saying it wanted a formal&nbsp;communication from the Indian central bank about new Indian bank notes being brought into&nbsp;circulation.

&quot;Until such a notice is received, we will not accept the new Indian notes,&quot; said central bank&nbsp;official Rajendra Pandit.

That leaves thousands of Nepalis doing informal trade along the open border with India without the&nbsp;means to receive or make payments for their business.

Nepali Prime Minister Pushpa Kamal Dahal, a former Maoist rebel commander, spoke to Modi after the&nbsp;currency ban to ask for arrangements for the exchange of the now defunct Indian cash held in Nepal,&nbsp;but that has yet to happen.

The inflow of Indian tourists to Nepal, who account for a quarter of about 800,000 visitors a year,&nbsp;has fallen. Many Indian tourists have traditionally carried Indian currency for payments in Nepal.

In addition, Nepal depends heavily on funds from workers in India, who sent home $640 million in&nbsp;2016, or about 2.6 percent of Nepal&#39;s gross domestic product.

Thousands of Nepali migrants are returning home as Indian businesses cut production following the&nbsp;cash crunch.

(Reuters) 
&nbsp;

A rating agency says Nepal's growth -- for this fiscal year to July 2017 -- is likely to fall to 2.2% from an earlier estimate of 2.5%

India's scrapping of high-value bank notes last month has dragged down economic growth in neighbouring Nepal with trade, remittances and tourist numbers all down, BMI Research, a group company of the Fitch rating agency, said on Wednesday. BMI has revised down its forecast for land-locked Nepal's economy, saying that India's demonetisation could shave Nepal's growth down to 2.2 per cent for this fiscal year to July 2017, from an earlier estimate of 2.5 per cent. Nepal's $21 billion economy was already suffering with growth at less than 0.8 per cent in the 2015-16 fiscal year after earthquakes in 2015 that killed about 9,000 people. "The disruption in funds from India is likely to weigh on ongoing reconstruction efforts," the research agency said in a report, adding that Nepal's economy was heavily reliant on India for trade, jobs and aid. The announcement by prime minister Narendra Modi on November 8 to ban 500- and 1,000-rupee notes was intended to flush out billions of dollars in unaccounted wealth and hit the finances of militants suspected of using fake currency. The Nepal Rastra Bank, the central bank, has now banned Indian currency, saying it wanted a formal communication from the Indian central bank about new Indian bank notes being brought into circulation. "Until such a notice is received, we will not accept the new Indian notes," said central bank official Rajendra Pandit. That leaves thousands of Nepalis doing informal trade along the open border with India without the means to receive or make payments for their business. Nepali Prime Minister Pushpa Kamal Dahal, a former Maoist rebel commander, spoke to Modi after the currency ban to ask for arrangements for the exchange of the now defunct Indian cash held in Nepal, but that has yet to happen. The inflow of Indian tourists to Nepal, who account for a quarter of about 800,000 visitors a year, has fallen. Many Indian tourists have traditionally carried Indian currency for payments in Nepal. In addition, Nepal depends heavily on funds from workers in India, who sent home $640 million in 2016, or about 2.6 percent of Nepal's gross domestic product. Thousands of Nepali migrants are returning home as Indian businesses cut production following the cash crunch. (Reuters)

India's demonetisation drive drags down Nepal's economy: Report

Former Indian finance minister P Chidambaram on Tuesday said it will take at least seven months for the government to replace the 500 and 1000 rupees banknotes that were ordered out of circulation on November 8.

&quot;Take a simple arithmetic...they demonetised 2,200 (total volume) crore Rs 500 and Rs 1,000 notes. The capacity of all printing presses taken together is 300 crore notes (rpt) notes per month. So, even if you print note for note, it will take seven months. If you print smaller denominations notes like Rs 100 for Rs 500, it will take five times more time... Think somebody didn&#39;t think through... that&#39;s not unusual for government,&quot; Chidambaram said.

Speaking at a literature festival in Mumbai, Chidambaram said that the after-effects of the demonetisation decision will continue for a longer period than expected.

&quot;You are seeing the first-order effects of withdrawing, sucking out 86 per cent of the currency in circulation from the market. The first order will continue for several weeks now. Then you will see the second-order effects.&quot;

The demonetised Rs 500 and Rs 1,000 notes accounted for over 86 per cent of the total Rs 16.24 lakh crore value of banknotes in circulation as on March 31, 2016, according to Reserve Bank of India&#39;s latest annual report.

The first order effects he explained could be seen in less consumption by people which meant that produce, especially perishable produce like vegetables, fruits, were not being sold.

The second oredr effects were already visible in places like Tirupur and Surat, where lay-offs and retrenchments have started, he said.

The 71-year-old politician further said the demonetisation move was not well thought out and wondered if the government had consulted its chief economic advisor before taking the decision.

&quot;My suspicion is the only knowledgeable economist in the government, Dr Arvind Subramanian, was not consulted,&quot; he said.

He also said that it was too early to quantify the damage caused by the decision.

Chidambaram said that the 50 days that Prime Minister Narendra Modi had asked for the results of his initiative to show might ease the liquidity crisis for individual hands. He, however, said that it would not solve any other issues.

&quot;The PM&#39;s time out for 50 days might ease the liquidity crisis at individual&#39;s hands, but it won&#39;t solve many other problems.&quot;

(With inputs from PTI)

Chidambaram said that the after-effects of the demonetisation decision will continue for a longer period than expected

Former Indian finance minister P Chidambaram on Tuesday said it will take at least seven months for the government to replace the 500 and 1000 rupees banknotes that were ordered out of circulation on November 8. "Take a simple arithmetic...they demonetised 2,200 (total volume) crore Rs 500 and Rs 1,000 notes. The capacity of all printing presses taken together is 300 crore notes (rpt) notes per month. So, even if you print note for note, it will take seven months. If you print smaller denominations notes like Rs 100 for Rs 500, it will take five times more time... Think somebody didn't think through... that's not unusual for government," Chidambaram said. Speaking at a literature festival in Mumbai, Chidambaram said that the after-effects of the demonetisation decision will continue for a longer period than expected. "You are seeing the first-order effects of withdrawing, sucking out 86 per cent of the currency in circulation from the market. The first order will continue for several weeks now. Then you will see the second-order effects." The demonetised Rs 500 and Rs 1,000 notes accounted for over 86 per cent of the total Rs 16.24 lakh crore value of banknotes in circulation as on March 31, 2016, according to Reserve Bank of India's latest annual report. The first order effects he explained could be seen in less consumption by people which meant that produce, especially perishable produce like vegetables, fruits, were not being sold. The second oredr effects were already visible in places like Tirupur and Surat, where lay-offs and retrenchments have started, he said. The 71-year-old politician further said the demonetisation move was not well thought out and wondered if the government had consulted its chief economic advisor before taking the decision. "My suspicion is the only knowledgeable economist in the government, Dr Arvind Subramanian, was not consulted," he said. He also said that it was too early to quantify the damage caused by the decision. Chidambaram said that the 50 days that Prime Minister Narendra Modi had asked for the results of his initiative to show might ease the liquidity crisis for individual hands. He, however, said that it would not solve any other issues. "The PM's time out for 50 days might ease the liquidity crisis at individual's hands, but it won't solve many other problems." (With inputs from PTI)

Demonetisation: Will take at least 7 months to replace old currency, says former finance minister P Chidambaram

Indian Prime Minister Narendra Modi on Saturday accused the opposition Congress of looting the common man for 70 years and vowed to continue fighting for the poor.

&quot;You have looted the common man for 70 years and made it harsh for them to survive. I have come to fight for the poor and give power in their hands,&quot; said Modi while inaugurating dairy plants in Deesa city of western Gujarat state.

The 66-year-old politician slammed the opposition for not letting him speak in the parliament even after they demanded his presence.

&quot;Government has always said we are ready to debate. I am not being allowed to speak in the Lok Sabha (lower house). So I am speaking in the Jan (common) Sabha,&quot; he said.

Emphasising the fact that demonetisation has been introduced with the intention of curbing black money and eradicating corruption, Prime Minister Modi said corruption has always pained the common man, making their lives miserable.

&quot;Who is unhappy with corruption? Not those perpetrating corruption...it is the poor, the common citizens who are unhappy,&quot; he said. He added that the &quot;evils&quot; of black money and corruption were slowing India&#39;s progress and adversely affecting the poor.

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Want to assure the people of the country that no one will be spared: PM Narendra Modi in Gujarat <a href="https://t.co/HBURG3F7ik">pic.twitter.com/HBURG3F7ik</a>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/807477788433215488">December 10, 2016</a></blockquote>
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He further urged the people to move towards digital modes of payment and not waste their time outside of banks and ATMs.

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I urge you all to integrate people with e-banking, e-wallets: PM <a href="https://twitter.com/narendramodi">@narendramodi</a>
&mdash; PMO India (@PMOIndia) <a href="https://twitter.com/PMOIndia/status/807478225420972034">December 10, 2016</a></blockquote>
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There is no need to waste your time standing outside banks or ATMs, e-wallets have brought banks to your mobiles: PM Modi <a href="https://t.co/sl828PMZQL">pic.twitter.com/sl828PMZQL</a>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/807478385580482560">December 10, 2016</a></blockquote>
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&nbsp;

The Prime Minister thanked the people for standing by his side and encouraging his decision to demonetise.

&quot;In spite of efforts by others to incite people, people have stood by me and supported the decision.&quot;

He assured people that they will see changes in time.

West Bengal state chief minister Mamata Banerjee on Saturday criticised Modi&#39;s address saying, &quot;Modi babu knows that #DeMonetisation now derailed. Except giving &#39;bhashan&#39;, he has no solution.&quot;

Urban development minister Venkaiah Naidu also hit out at the Opposition on Saturday, &quot;Don&#39;t try to threaten us, we are ready for a debate, it is you (Opposition), who are obstructing the Parliament.&quot;

(With inputs from ANI)

Modi accused the Congress of looting the common man for 70 years and vowed to continue his fight for the poor

Indian Prime Minister Narendra Modi on Saturday accused the opposition Congress of looting the common man for 70 years and vowed to continue fighting for the poor. "You have looted the common man for 70 years and made it harsh for them to survive. I have come to fight for the poor and give power in their hands," said Modi while inaugurating dairy plants in Deesa city of western Gujarat state. The 66-year-old politician slammed the opposition for not letting him speak in the parliament even after they demanded his presence. "Government has always said we are ready to debate. I am not being allowed to speak in the Lok Sabha (lower house). So I am speaking in the Jan (common) Sabha," he said. Emphasising the fact that demonetisation has been introduced with the intention of curbing black money and eradicating corruption, Prime Minister Modi said corruption has always pained the common man, making their lives miserable. "Who is unhappy with corruption? Not those perpetrating corruption...it is the poor, the common citizens who are unhappy," he said. He added that the "evils" of black money and corruption were slowing India's progress and adversely affecting the poor. Want to assure the people of the country that no one will be spared: PM Narendra Modi in Gujarat pic.twitter.com/HBURG3F7ik — ANI (@ANI_news) December 10, 2016 × He further urged the people to move towards digital modes of payment and not waste their time outside of banks and ATMs. I urge you all to integrate people with e-banking, e-wallets: PM @narendramodi — PMO India (@PMOIndia) December 10, 2016 × There is no need to waste your time standing outside banks or ATMs, e-wallets have brought banks to your mobiles: PM Modi pic.twitter.com/sl828PMZQL — ANI (@ANI_news) December 10, 2016 × The Prime Minister thanked the people for standing by his side and encouraging his decision to demonetise. "In spite of efforts by others to incite people, people have stood by me and supported the decision." He assured people that they will see changes in time. West Bengal state chief minister Mamata Banerjee on Saturday criticised Modi's address saying, "Modi babu knows that #DeMonetisation now derailed. Except giving 'bhashan', he has no solution." Urban development minister Venkaiah Naidu also hit out at the Opposition on Saturday, "Don't try to threaten us, we are ready for a debate, it is you (Opposition), who are obstructing the Parliament." (With inputs from ANI)

Indian PM Modi: Demonetisation will empower and strengthen poor

Apart from the winter chill, the people in and around Sankhda village in Gir Somnath district of Gujarat who camp outside the local branch of the State Bank of India (SBI) every night have to fight the fear of lions and leopards.

The people from nearby villages are spending the nights outside the SBI branch in Sankhda -- the lone bank branch in the area -- so that they get the cash before it runs out when the bank opens in the morning.

However, sometimes there are other nocturnal visitors.

&quot;A leopard strayed into the village about one week ago. The people who had lined up outside the bank and villagers managed to run it off into forest, but before that, it killed a calf,&quot; said the village sarpanch Santubhai Gohil.

The area is close to the Gir Lions Sanctuary.

The SBI branch at Sankhda caters to about 20 villages.

The sarpanch claimed that though the RBI has allowed withdrawal of Rs 24,000 a week, only Rs 2,000 were being disbursed by the bank as the&nbsp;supply of currency was not adequate.

&quot;Shops are no longer willing to sell milk and groceries on credit,&quot; Gohil said.

People, desperate to withdraw cash, camped outside the bank armed with blankets and woollens, he said.

&quot;I have made arrangement to provide the people who camp outside the bank with biscuits and water,&quot; he said.

Farukh Raja, a resident of nearby Una town, said another problem was the banks were dispensing Rs 2,000 notes, which shopkeepers do not accept easily.

Some people were charging a premium Rs 200 to accept the Rs 2,000 note, he claimed.&nbsp;

(PTI)

People from in and around Sankhda village in Gujarat camp outside a lone bank branch in the area to get cash before it runs out

Apart from the winter chill, the people in and around Sankhda village in Gir Somnath district of Gujarat who camp outside the local branch of the State Bank of India (SBI) every night have to fight the fear of lions and leopards. The people from nearby villages are spending the nights outside the SBI branch in Sankhda -- the lone bank branch in the area -- so that they get the cash before it runs out when the bank opens in the morning. However, sometimes there are other nocturnal visitors. "A leopard strayed into the village about one week ago. The people who had lined up outside the bank and villagers managed to run it off into forest, but before that, it killed a calf," said the village sarpanch Santubhai Gohil. The area is close to the Gir Lions Sanctuary. The SBI branch at Sankhda caters to about 20 villages. The sarpanch claimed that though the RBI has allowed withdrawal of Rs 24,000 a week, only Rs 2,000 were being disbursed by the bank as the supply of currency was not adequate. "Shops are no longer willing to sell milk and groceries on credit," Gohil said. People, desperate to withdraw cash, camped outside the bank armed with blankets and woollens, he said. "I have made arrangement to provide the people who camp outside the bank with biscuits and water," he said. Farukh Raja, a resident of nearby Una town, said another problem was the banks were dispensing Rs 2,000 notes, which shopkeepers do not accept easily. Some people were charging a premium Rs 200 to accept the Rs 2,000 note, he claimed. (PTI)

Demonetisation: Spending nights outside bank, people battle fear of leopards

Should you still be refusing to use your debit or credit card or your mobile phone to make payments in the midst of the current cash crunch, the government has now given you a slew of reasons to move to digital payments.

It announced a number of incentives Thursday.

The&nbsp;sops are mostly in the form of discounts.

For example, a digital payment at government-owned fuel stations will now get you 75 basis points (bps) off on the retail price. (1 bps works out to 1 paisa on every rupee.)&nbsp;

So, at the current price of Rs 66.10 per litre in Delhi, you would save about 50 paise per litre.

Finance minister Arun Jaitley has worked out the math well.

According to him, digital payments at state-owned petrol pumps doubled last month, from 20 to 40 per cent. He said about 4.5 crore customers bought fuel worth Rs 1,800 crore at these pumps every day in the last month. That means transactions worth Rs 360 crore have moved from cash to digital.

Jaitley expects his discount to bring about another 30 per cent jump in digital payments at fuel stations, which will further slash cash usage at petrol pumps by Rs 2 lakh crore a year.

The government has offered other concessions, like 50 bps off on monthly or seasonal tickets on suburban railway networks beginning January 1 next year, and a 5 per cent discount on catering, accommodation, retiring rooms and other paid railway services.

It has also waived service tax on the use of credit, debit, charge or any other payment card for payments of up to Rs 2,000.

Online train ticket booking will fetch a passenger free accidental insurance cover of up to Rs 10 lakh and use of RFID or fast-tags will lower toll fee paid at toll plazas on the National Highway by 10 per cent.

Other measures include offering free point of sale (PoS) machines to 1 lakh villages with a population of up to 10,000, abolishing Merchant Discount Rate (MDR) on digital transactions for central government and PSU services, rental cap of Rs 100 for PoS terminals, micro ATMs and Mobil PoS, Rupay Kisan cards for Kisan cardholders and discount and credit by PSU insurance companies of up to 10 per cent of the premium for general insurance policies and 8 per cent for new life cover from Life Insurance Corporation (LIC).

Meanwhile, the National Bank for Agriculture and Rural Development (NABARD) declared that it will extend support to banks for deployment of two PoS devices per village in 1 lakh villages. The estimated cost of this support will be around Rs 120 crore.

For those farmers who are already on RuPay Kisan Credit Card (KCC) platform, NABARD will now support procurement of Europay, Mastercard and Visa chips and PIN-based RuPay Kisan cards by regional rural and rural cooperative banks. NABARD will spend approximately Rs 108 crore to cover around 4.32 crore KCC holders.

&ldquo;We believe that these two initiatives will have a positive impact in easing the transition to digital transactions,&rdquo; said NABARD chairman Harsh Kumar Bhanwala.

Naveen Surya, chairman, Payment Council of India, said the cost reduction that would accrue from the shift to digital modes of payment should be passed on to the end-consumers. &ldquo;Benefits passed on to consumers will give a booster growth to digital payment companies,&rdquo; he said.

He called for more such incentives for other services like electricity or mobile bills, long-distance railway tickets and others. Jaitley said that the government was eventually aiming at making political donations payments also digital, like in many developed countries.

&ldquo;This (incentives and demonetisation) will certainly move India to less cash economy,&rdquo; he said.

(This article first appeared in DNA)

Paying digitally will now get you discounts at govt-owned fuel stations, and service tax will be waived off on card payments up to Rs 2,000

Should you still be refusing to use your debit or credit card or your mobile phone to make payments in the midst of the current cash crunch, the government has now given you a slew of reasons to move to digital payments. It announced a number of incentives Thursday. The sops are mostly in the form of discounts. For example, a digital payment at government-owned fuel stations will now get you 75 basis points (bps) off on the retail price. (1 bps works out to 1 paisa on every rupee.) So, at the current price of Rs 66.10 per litre in Delhi, you would save about 50 paise per litre. Finance minister Arun Jaitley has worked out the math well. According to him, digital payments at state-owned petrol pumps doubled last month, from 20 to 40 per cent. He said about 4.5 crore customers bought fuel worth Rs 1,800 crore at these pumps every day in the last month. That means transactions worth Rs 360 crore have moved from cash to digital. Jaitley expects his discount to bring about another 30 per cent jump in digital payments at fuel stations, which will further slash cash usage at petrol pumps by Rs 2 lakh crore a year. The government has offered other concessions, like 50 bps off on monthly or seasonal tickets on suburban railway networks beginning January 1 next year, and a 5 per cent discount on catering, accommodation, retiring rooms and other paid railway services. It has also waived service tax on the use of credit, debit, charge or any other payment card for payments of up to Rs 2,000. Online train ticket booking will fetch a passenger free accidental insurance cover of up to Rs 10 lakh and use of RFID or fast-tags will lower toll fee paid at toll plazas on the National Highway by 10 per cent. Other measures include offering free point of sale (PoS) machines to 1 lakh villages with a population of up to 10,000, abolishing Merchant Discount Rate (MDR) on digital transactions for central government and PSU services, rental cap of Rs 100 for PoS terminals, micro ATMs and Mobil PoS, Rupay Kisan cards for Kisan cardholders and discount and credit by PSU insurance companies of up to 10 per cent of the premium for general insurance policies and 8 per cent for new life cover from Life Insurance Corporation (LIC). Meanwhile, the National Bank for Agriculture and Rural Development (NABARD) declared that it will extend support to banks for deployment of two PoS devices per village in 1 lakh villages. The estimated cost of this support will be around Rs 120 crore. For those farmers who are already on RuPay Kisan Credit Card (KCC) platform, NABARD will now support procurement of Europay, Mastercard and Visa chips and PIN-based RuPay Kisan cards by regional rural and rural cooperative banks. NABARD will spend approximately Rs 108 crore to cover around 4.32 crore KCC holders. “We believe that these two initiatives will have a positive impact in easing the transition to digital transactions,” said NABARD chairman Harsh Kumar Bhanwala. Naveen Surya, chairman, Payment Council of India, said the cost reduction that would accrue from the shift to digital modes of payment should be passed on to the end-consumers. “Benefits passed on to consumers will give a booster growth to digital payment companies,” he said. He called for more such incentives for other services like electricity or mobile bills, long-distance railway tickets and others. Jaitley said that the government was eventually aiming at making political donations payments also digital, like in many developed countries. “This (incentives and demonetisation) will certainly move India to less cash economy,” he said. (This article first appeared in DNA)

Demonetisation: To make India switch to digital payments, govt offers slew of incentives

By Saurabh Goenka

How would you feel if a friend whom you owed money never took it back? Let&#39;s say Rs 10,000.&nbsp;

Now, how would you feel if that amount were Rs 3 lakh crore?&nbsp;

That could happen to the Reserve Bank of India on December 30, the last date to deposit old Rs 500 and 1,000 notes. According to the RBI, before demonetisation, the now-old Rs 500 and 1,000 notes added up to a total of Rs 14 lakh crore. Till November 28, only Rs 8 lakh crore in old notes were deposited in banks. It is further expected that not more than another Rs 3 lakh crore in old notes will be deposited by December 30, the last date to do so.&nbsp;

That leaves Rs 3 lakh crore worth of old notes that might never be exchanged for new. &nbsp;

Should that happen, the RBI will become richer by Rs 3 lakh crore, since it will then not be obliged to pay the persons holding the old notes.&nbsp;

Before moving on to an example, let&rsquo;s check the definition of a currency note.&nbsp;

A currency note is a &quot;promissory&quot; note or bill issued by a country&#39;s central bank. Promissory means implying a promise. The currency we use as money then is basically a piece of paper, but backed by the RBI with the promise of paying the person holding the note the value of the note. (Bear with me.)&nbsp;

Now the example:

Let&#39;s say Mohan goes to his friend Sohan&rsquo;s shop and picks up a cellphone for Rs 2,000.&nbsp;

But he currently does not have the money to pay for it. Sohan agrees to take the Rs 2,000 from him two months later and makes Mohan write on a piece of paper that he will pay anybody who holds the paper Rs 2,000 after two months.&nbsp;

A few days later, Sohan has to pay the wholesaler Mr Mukesh Rs 10,000. Sohan pays him Rs 8,000 in cash and hands over the paper signed by Mohan (promising Rs 2,000). Mukesh can now take this &quot;promissory note&quot; and collect Rs 2,000 from Mohan on the specified date (two months later) or use it to further &quot;pay&quot; someone else.

In the Indian economy, the RBI undertakes this &quot;promise&quot;.&nbsp;

Take out any note from your wallet and check for yourself. For example, take out a 100-rupee note and read what is written on it above the RBI governor&rsquo;s signature. It says: &quot;I promise to pay the bearer the sum of one hundred rupees&quot;.&nbsp;

Now say Sohan does not use the paper signed by Mohan, nor does he pass it on to anybody else. In that case, in two months, Mohan becomes richer by Rs 2,000.&nbsp;

Exactly the same thing -- albeit on a much, much larger case -- could happen with the RBI and the old currency notes. The Rs 3 lakh crore that might not&nbsp;be deposited with the banks will no longer have to be backed up by the RBI, making it richer by that much.&nbsp;

A Rs 3 lakh crore windfall!&nbsp;

What will happen with all this money?

The RBI will transfer it to the government of India in the form of dividend. This will in turn reduce the government&rsquo;s budgetary deficits; in simple terms, the government could use the money to pay for public expenditure, ie build roads and hospitals, add to its rail network, etc etc.

Would the public benefit from this?

Yes of course. Greater government expenditure on public infrastructure would mean better facilities for the public. Plus, the actual building and running of this infrastructure would create more jobs -- possibly offsetting any loss of jobs and recessionary trends witnessed in the immediate aftermath of the demonetisation. All this potential infrastructure building will require raw material to feed it, which would mean more production, which in turn could mean a possibly higher GDP.&nbsp;

(WION)

It is expected old Rs 500 and 1,000 notes worth that much will never be exchanged, in turn making the RBI richer by that much. Here's how

By Saurabh Goenka How would you feel if a friend whom you owed money never took it back? Let's say Rs 10,000. Now, how would you feel if that amount were Rs 3 lakh crore? That could happen to the Reserve Bank of India on December 30, the last date to deposit old Rs 500 and 1,000 notes. According to the RBI, before demonetisation, the now-old Rs 500 and 1,000 notes added up to a total of Rs 14 lakh crore. Till November 28, only Rs 8 lakh crore in old notes were deposited in banks. It is further expected that not more than another Rs 3 lakh crore in old notes will be deposited by December 30, the last date to do so. That leaves Rs 3 lakh crore worth of old notes that might never be exchanged for new. Should that happen, the RBI will become richer by Rs 3 lakh crore, since it will then not be obliged to pay the persons holding the old notes. Before moving on to an example, let’s check the definition of a currency note. A currency note is a "promissory" note or bill issued by a country's central bank. Promissory means implying a promise. The currency we use as money then is basically a piece of paper, but backed by the RBI with the promise of paying the person holding the note the value of the note. (Bear with me.) Now the example: Let's say Mohan goes to his friend Sohan’s shop and picks up a cellphone for Rs 2,000. But he currently does not have the money to pay for it. Sohan agrees to take the Rs 2,000 from him two months later and makes Mohan write on a piece of paper that he will pay anybody who holds the paper Rs 2,000 after two months. A few days later, Sohan has to pay the wholesaler Mr Mukesh Rs 10,000. Sohan pays him Rs 8,000 in cash and hands over the paper signed by Mohan (promising Rs 2,000). Mukesh can now take this "promissory note" and collect Rs 2,000 from Mohan on the specified date (two months later) or use it to further "pay" someone else. In the Indian economy, the RBI undertakes this "promise". Take out any note from your wallet and check for yourself. For example, take out a 100-rupee note and read what is written on it above the RBI governor’s signature. It says: "I promise to pay the bearer the sum of one hundred rupees". Now say Sohan does not use the paper signed by Mohan, nor does he pass it on to anybody else. In that case, in two months, Mohan becomes richer by Rs 2,000. Exactly the same thing -- albeit on a much, much larger case -- could happen with the RBI and the old currency notes. The Rs 3 lakh crore that might not be deposited with the banks will no longer have to be backed up by the RBI, making it richer by that much. A Rs 3 lakh crore windfall! What will happen with all this money? The RBI will transfer it to the government of India in the form of dividend. This will in turn reduce the government’s budgetary deficits; in simple terms, the government could use the money to pay for public expenditure, ie build roads and hospitals, add to its rail network, etc etc. Would the public benefit from this? Yes of course. Greater government expenditure on public infrastructure would mean better facilities for the public. Plus, the actual building and running of this infrastructure would create more jobs -- possibly offsetting any loss of jobs and recessionary trends witnessed in the immediate aftermath of the demonetisation. All this potential infrastructure building will require raw material to feed it, which would mean more production, which in turn could mean a possibly higher GDP. (WION)

Demonetisation: RBI could get Rs 3 lakh crore richer, as could the government

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

The Indian government today said sufficient cash is available with the Reserve Bank of India (RBI) and banks, and it is not considering extending the deadline of December 30 for deposit of invalid&nbsp;500 and&nbsp;1,000 rupee notes.

The statement was made in the Rajya Sabha even as people queued up at banks to deposit old high-value notes and withdraw new cash.

&quot;There is sufficient cash available with the Reserve Bank of India and banks. Circulation of notes in respect of Rs 100 has already been increased,&quot; minister of state for finance Arun Ram Meghwal said in a written reply.

On whether the December 30 deadline will be extended, he said, &quot;No such proposal for extension of deadline beyond December 30, 2016, is presently under consideration of the government.&quot;

To cater to the requirements of rural areas, banks have been advised to supply notes of smaller denominations (Rs 100 and less), Meghwal added.

As on November 8, the day demonetisation was announced, there were 1,716.50 crore pieces of Rs 500 and 685.80 crore of Rs 1,000 notes in circulation.

To another question, minister of state for finance Santosh Kumar Gangwar said RBI advises banks from time to time to enhance security arrangements at their branches and ATMs.

This includes coverage of ATM sites by CCTVs and ensuring adequate training of security staff posted there.

Banks have also been advised to review and strengthen the security arrangements in their branches/ATMs to deal with instances of robberies and risk perceptions emerging from such incidents.&nbsp;

(PTI)&nbsp;

The statement was made in the Rajya Sabha even as people queued up at banks to deposit old high value notes and withdraw new cash

The Indian government today said sufficient cash is available with the Reserve Bank of India (RBI) and banks, and it is not considering extending the deadline of December 30 for deposit of invalid 500 and 1,000 rupee notes. The statement was made in the Rajya Sabha even as people queued up at banks to deposit old high-value notes and withdraw new cash. "There is sufficient cash available with the Reserve Bank of India and banks. Circulation of notes in respect of Rs 100 has already been increased," minister of state for finance Arun Ram Meghwal said in a written reply. On whether the December 30 deadline will be extended, he said, "No such proposal for extension of deadline beyond December 30, 2016, is presently under consideration of the government." To cater to the requirements of rural areas, banks have been advised to supply notes of smaller denominations (Rs 100 and less), Meghwal added. As on November 8, the day demonetisation was announced, there were 1,716.50 crore pieces of Rs 500 and 685.80 crore of Rs 1,000 notes in circulation. To another question, minister of state for finance Santosh Kumar Gangwar said RBI advises banks from time to time to enhance security arrangements at their branches and ATMs. This includes coverage of ATM sites by CCTVs and ensuring adequate training of security staff posted there. Banks have also been advised to review and strengthen the security arrangements in their branches/ATMs to deal with instances of robberies and risk perceptions emerging from such incidents. (PTI)

Demonetisation: Indian government will not extend December 30 deadline for cash deposits

A taxi driver in Barnala city of India&#39;s northern Punjab state was shocked beyond words when a huge sum of money was transferred into his account.

Cash to the tune of INR 98 billion (approximately USD 1.43 billion) was transferred into the account of Balwinder Singh on November 4, four days before Prime Minister Narendra Modi announced abolishing of high-value bank notes.

The amount was, however, deducted from the account the very next day.

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Balwinder Singh. (Agencies)
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&nbsp;

Since then, Singh has visited all branches of his bank in the city to end suspense on the mysterious transaction&nbsp;but is still dissatisfied as no bank employee is willing to clear the air about the episode.

&quot;I am not satisfied with what the bank manager is telling me about the amount that has been transferred in my account. Bank manager is telling it is not their fault so I am not satisfied with it,&quot; said Singh on Tuesday (November 29).

According to local media reports, Singh has also accused the bank of taking his passbook and issuing a new one without entering the amount credit and subsequent debit.

Income Tax officer Kapil Kishore said they were recording statements of the bank employees to probe the matter.

&quot;The bank account holder said that he has no connection with the transferred amount. It is the responsibility of the bank manager to investigate how such a huge amount was transferred. The driver has also mentioned in his application that the bank has asked him to submit his passbook. We will check the bank records after taking permission from the bank and our higher authorities. We will also record the bank manager&#39;s statement and conduct investigations based on all facts,&quot; said Kishore.

Further investigation is underway.

(Reuters)

The amount was, however, deducted from the account the very next day. Income Tax department is probing the matter

A taxi driver in Barnala city of India's northern Punjab state was shocked beyond words when a huge sum of money was transferred into his account. Cash to the tune of INR 98 billion (approximately USD 1.43 billion) was transferred into the account of Balwinder Singh on November 4, four days before Prime Minister Narendra Modi announced abolishing of high-value bank notes. The amount was, however, deducted from the account the very next day. Balwinder Singh. (Agencies) × Since then, Singh has visited all branches of his bank in the city to end suspense on the mysterious transaction but is still dissatisfied as no bank employee is willing to clear the air about the episode. "I am not satisfied with what the bank manager is telling me about the amount that has been transferred in my account. Bank manager is telling it is not their fault so I am not satisfied with it," said Singh on Tuesday (November 29). According to local media reports, Singh has also accused the bank of taking his passbook and issuing a new one without entering the amount credit and subsequent debit. Income Tax officer Kapil Kishore said they were recording statements of the bank employees to probe the matter. "The bank account holder said that he has no connection with the transferred amount. It is the responsibility of the bank manager to investigate how such a huge amount was transferred. The driver has also mentioned in his application that the bank has asked him to submit his passbook. We will check the bank records after taking permission from the bank and our higher authorities. We will also record the bank manager's statement and conduct investigations based on all facts," said Kishore. Further investigation is underway. (Reuters)

India: $1.43 billion 'accidentally' transferred into taxi driver's bank account

The rupee had hit its all-time intra-day low of 68.85 and closed at 68.80 on August 28, 2013

Graph: The Indian Rupee's travel against the Dollar

Attacking the Modi government, former Prime Minister Manmohan Singh on Thursday called the implementation of demonetisation as &#39;monumental management failure&#39; and urged the Prime Minister to find a practical and pragmatic solution to give relief to the common man.

&quot;We don&#39;t disagree with the objective of fighting graft but it was a monumental management failure the way it was done. It&#39;s a case of organised loot and legalised plunder,&quot; Singh said after Rajya Sabha resumed debate on demonetisation in Prime Minister Narendra Modi&#39;s presence.

&quot;It is important to take note of the grievances of the people suffering. 60 to 65 people have lost their lives, what has been done can weaken our people&#39;s confidence in currency and banking system,&quot; he added.

Stating that the PM had asked people to wait for 50 days but for the poor section even 50 days can be detrimental, he said. adding, &quot;I want to ask PM, can he name any country where people have deposited their money but are not able to withdraw it?&quot;

The former prime minister also said that the way demonetisation was implemented would hurt agriculture, small businesses and informal sector and that the GDP would see a decline of at least 2.5%.

Taking on RBI for every day modification of rules, Singh said, &quot;It is not good that every day the banking system comes out with modification. The cooperative banking sector which is serving large number in the rural sector is not operational. PM must come with some constructive proposal on how we can implement the scheme.&quot;

Earlier in the day, opposition parties decided not to hold talks with the government over demonetization till November 28 when they will mark the &#39;Aakrosh Diwas&#39;.

(This article first appeared on DNA)

The former prime minister also said that the way demonetisation was implemented would hurt agriculture, small businesses and informal sector

Attacking the Modi government, former Prime Minister Manmohan Singh on Thursday called the implementation of demonetisation as 'monumental management failure' and urged the Prime Minister to find a practical and pragmatic solution to give relief to the common man. "We don't disagree with the objective of fighting graft but it was a monumental management failure the way it was done. It's a case of organised loot and legalised plunder," Singh said after Rajya Sabha resumed debate on demonetisation in Prime Minister Narendra Modi's presence. "It is important to take note of the grievances of the people suffering. 60 to 65 people have lost their lives, what has been done can weaken our people's confidence in currency and banking system," he added. Stating that the PM had asked people to wait for 50 days but for the poor section even 50 days can be detrimental, he said. adding, "I want to ask PM, can he name any country where people have deposited their money but are not able to withdraw it?" The former prime minister also said that the way demonetisation was implemented would hurt agriculture, small businesses and informal sector and that the GDP would see a decline of at least 2.5%. Taking on RBI for every day modification of rules, Singh said, "It is not good that every day the banking system comes out with modification. The cooperative banking sector which is serving large number in the rural sector is not operational. PM must come with some constructive proposal on how we can implement the scheme." Earlier in the day, opposition parties decided not to hold talks with the government over demonetization till November 28 when they will mark the 'Aakrosh Diwas'. (This article first appeared on DNA)

Demonetisation 'monumental management failure', find practical solution: Former PM to govt

More than 93 per cent of the five lakh people who participated in a survey on the Narendra Modi App have supported demonetisation, the Prime Minister&#39;s office&nbsp;said Wednesday, a day after Indian Prime Minister Narendra Modi sought the public&#39;s feedback on the issue.

&quot;I thank people for the historic participation in the survey. It&#39;s satisfying to read the insightful views &amp; comments,&quot; the Prime Minister tweeted along with the results of the survey conducted on the Narendra Modi App.

&quot;Unprecedented response to App Survey, record number of citizens share their view,&quot; said the title of a write-up on narendramodi.in; the link to which was shared by Modi on his Twitter account.

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I thank people for the historic participation in the survey. Its satisfying to read the insightful views &amp; comments. <a href="https://t.co/xf14LEiQHT">https://t.co/xf14LEiQHT</a> <a href="https://t.co/cGSBPlCnE5">pic.twitter.com/cGSBPlCnE5</a>
&mdash; Narendra Modi (@narendramodi) <a href="https://twitter.com/narendramodi/status/801412548721446912">November 23, 2016</a></blockquote>
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The survey result was read out by IT and Telecom minister Ravi Shankar Prasad at Cabinet meeting this evening, prompting Modi to say that it &quot;reflects the mood&quot; of the people.

In just over 24 hours of the survey, more than 5 lakh people have participated and expressed their opinion, it said, adding &quot;This is a staggering number by any stretch. No opinion survey conducted in India, on such policy or political issues, even comes close to sampling so many responses.&quot;

More than 93 per cent people support the move to demonetise the old 500 and 1000 Rupee notes, it said. Of the over 5 lakh responses so far, only 2 per cent have rated the move as &#39;very poor&#39; or &#39;one star&#39;, the survey result said.

More than 90 per cent of the respondents feel the government&#39;s move to tackle black money is above four-star rating, the survey result says. 73 per cent of them give it five-star rating of &#39;brilliant&#39;.

On the overall fight against corruption, more than 92 per cent of respondents either rate the government as &#39;very good&#39; or &#39;good&#39; while 57 per cent of them rate the fight as &#39;very good&#39;.

&quot;As high as 86 per cent people believe that some so- called anti-corruption activists are now actually batting in support of black money, corruption and even terrorist financing!&quot;, the write-up said.

The write-up said the demonetisation survey was launched on the NM App yesterday at 10 am&nbsp;and &quot;the response has been phenomenal.&quot;

Modi&#39;s move to gauge the views of the people directly came at a time when the opposition has escalated its attack on the issue of demonetisation.

Explaining the reason behind the Prime Minister&#39;s move on survey, the write-up said Modi&#39;s &quot;belief in participative governance and direct engagement with people is unwavering&quot; and &quot;time and again, he has directly engaged with the people and sought their views on a wide range of issues.

&quot;...It was then decided to speak directly to the people and take their views in an open, free, fair, and equitable poll.

&quot;Instead of intermediaries speaking on behalf of people, let the people speak for themselves. Let them say whether they support or oppose the demonetisation move.

&quot;Let them offer suggestions to alleviate the genuine inconveniences that some people may be facing. If someone has a well-argued case of opposing the move, let them say that too. Overall, instead of just opinion, let data speak for the support for the move.&quot;

Contending that the questions to which the Prime Minister had sought answers were &quot;comprehensive and direct&quot;, the write-up said the queries also included opportunity to give feedback.

&quot;The overall aim included means to make the implementation stronger and more effective,&quot; it said.

The questions included &quot;Do you have any suggestions/ideas or insights you would like to share with PM Narendra Modi.

(PTI)

The prime minister's office said 5 lakh people participated in the survey within 24 hours

More than 93 per cent of the five lakh people who participated in a survey on the Narendra Modi App have supported demonetisation, the Prime Minister's office said Wednesday, a day after Indian Prime Minister Narendra Modi sought the public's feedback on the issue. "I thank people for the historic participation in the survey. It's satisfying to read the insightful views & comments," the Prime Minister tweeted along with the results of the survey conducted on the Narendra Modi App. "Unprecedented response to App Survey, record number of citizens share their view," said the title of a write-up on narendramodi.in; the link to which was shared by Modi on his Twitter account. I thank people for the historic participation in the survey. Its satisfying to read the insightful views & comments. https://t.co/xf14LEiQHT pic.twitter.com/cGSBPlCnE5 — Narendra Modi (@narendramodi) November 23, 2016 × The survey result was read out by IT and Telecom minister Ravi Shankar Prasad at Cabinet meeting this evening, prompting Modi to say that it "reflects the mood" of the people. In just over 24 hours of the survey, more than 5 lakh people have participated and expressed their opinion, it said, adding "This is a staggering number by any stretch. No opinion survey conducted in India, on such policy or political issues, even comes close to sampling so many responses." More than 93 per cent people support the move to demonetise the old 500 and 1000 Rupee notes, it said. Of the over 5 lakh responses so far, only 2 per cent have rated the move as 'very poor' or 'one star', the survey result said. More than 90 per cent of the respondents feel the government's move to tackle black money is above four-star rating, the survey result says. 73 per cent of them give it five-star rating of 'brilliant'. On the overall fight against corruption, more than 92 per cent of respondents either rate the government as 'very good' or 'good' while 57 per cent of them rate the fight as 'very good'. "As high as 86 per cent people believe that some so- called anti-corruption activists are now actually batting in support of black money, corruption and even terrorist financing!", the write-up said. The write-up said the demonetisation survey was launched on the NM App yesterday at 10 am and "the response has been phenomenal." Modi's move to gauge the views of the people directly came at a time when the opposition has escalated its attack on the issue of demonetisation. Explaining the reason behind the Prime Minister's move on survey, the write-up said Modi's "belief in participative governance and direct engagement with people is unwavering" and "time and again, he has directly engaged with the people and sought their views on a wide range of issues. "...It was then decided to speak directly to the people and take their views in an open, free, fair, and equitable poll. "Instead of intermediaries speaking on behalf of people, let the people speak for themselves. Let them say whether they support or oppose the demonetisation move. "Let them offer suggestions to alleviate the genuine inconveniences that some people may be facing. If someone has a well-argued case of opposing the move, let them say that too. Overall, instead of just opinion, let data speak for the support for the move." Contending that the questions to which the Prime Minister had sought answers were "comprehensive and direct", the write-up said the queries also included opportunity to give feedback. "The overall aim included means to make the implementation stronger and more effective," it said. The questions included "Do you have any suggestions/ideas or insights you would like to share with PM Narendra Modi. (PTI)

Survey on Narendra Modi app: 93% support demonetisation

When Bishnu Pandey, a Nepali migrant working in India, returned home two weeks ago, he had hoped to clear a loan taken by his family to rebuild its village home with his savings.

But the 35-year-old New Delhi restaurant worker had his dreams shattered after the bank refused to exchange cash worth $440 because of a crackdown on &quot;black money&quot; ordered by Indian Prime Minister Narendra Modi.

The shock announcement to ban 500 and 1,000 rupee bills - worth $7.50 and $15 - seeks to flush out billions of dollars in unaccounted wealth and hit the finances of militants suspected of using fake currency to fund operations.

&quot;I don&#39;t think I am the target but I became a victim,&quot; Pandey told Reuters outside a bank branch in Kathmandu, showing stacks of the old Indian notes that are no longer legal tender.

&quot;I have no money now to return to work and I have no way to pay back the family debt,&quot; he said, referring to $275 his father borrowed to repair his house damaged in earthquakes last year that killed 9,000 people and destroyed nearly one million homes.

The tall, lanky Pandey, from Naubise village in Dhading district, 24 km (15 miles) from Kathmandu, is one of hundreds of thousands in the desperately poor Himalayan country hit by the currency ban announced two weeks ago.

Families of migrants like Pandey, students seeking admissions in Indian colleges, those seeking medical treatment, pilgrims and those visiting families across the open border have all been hit. Unlike people in India, they can&#39;t deposit or swap old notes at banks that will accept them until Dec. 30.

Pashupati Murarka, chief of the Federation of the Nepalese Chambers of Commerce and Industry (FNCCI), estimates that dud banknotes worth as much as 10 billion Indian rupees ($146 million) may be held by individuals and the informal sector.

Nara Bahadur Thapa, an official at the central bank, said Nepal received 70 billion rupees ($640 million) in remittances from migrant workers in India every year.

Thousands of Gurkha soldiers retired from the Indian army also get their pensions paid in the Indian currency.

Nepali Prime Minister Prachanda, a former Maoist rebel commander, spoke to Modi over phone last week seeking arrangements for the exchange of Indian cash held in Nepal, his aides said.

Modi pledged to resolve the issue, but no arrangements have been made yet, they said.

(Reuters)

Bishnu Pandey is one of hundreds of thousands in the desperately poor Himalayan country hit by the currency ban announced two weeks ago

When Bishnu Pandey, a Nepali migrant working in India, returned home two weeks ago, he had hoped to clear a loan taken by his family to rebuild its village home with his savings. But the 35-year-old New Delhi restaurant worker had his dreams shattered after the bank refused to exchange cash worth $440 because of a crackdown on "black money" ordered by Indian Prime Minister Narendra Modi. The shock announcement to ban 500 and 1,000 rupee bills - worth $7.50 and $15 - seeks to flush out billions of dollars in unaccounted wealth and hit the finances of militants suspected of using fake currency to fund operations. "I don't think I am the target but I became a victim," Pandey told Reuters outside a bank branch in Kathmandu, showing stacks of the old Indian notes that are no longer legal tender. "I have no money now to return to work and I have no way to pay back the family debt," he said, referring to $275 his father borrowed to repair his house damaged in earthquakes last year that killed 9,000 people and destroyed nearly one million homes. The tall, lanky Pandey, from Naubise village in Dhading district, 24 km (15 miles) from Kathmandu, is one of hundreds of thousands in the desperately poor Himalayan country hit by the currency ban announced two weeks ago. Families of migrants like Pandey, students seeking admissions in Indian colleges, those seeking medical treatment, pilgrims and those visiting families across the open border have all been hit. Unlike people in India, they can't deposit or swap old notes at banks that will accept them until Dec. 30. Pashupati Murarka, chief of the Federation of the Nepalese Chambers of Commerce and Industry (FNCCI), estimates that dud banknotes worth as much as 10 billion Indian rupees ($146 million) may be held by individuals and the informal sector. Nara Bahadur Thapa, an official at the central bank, said Nepal received 70 billion rupees ($640 million) in remittances from migrant workers in India every year. Thousands of Gurkha soldiers retired from the Indian army also get their pensions paid in the Indian currency. Nepali Prime Minister Prachanda, a former Maoist rebel commander, spoke to Modi over phone last week seeking arrangements for the exchange of Indian cash held in Nepal, his aides said. Modi pledged to resolve the issue, but no arrangements have been made yet, they said. (Reuters)

Nepali migrant workers unwitting victims of India cash crackdown

As soon as both houses convened for the day, members of the Opposition parties marched into the well of both Rajya Sabha and Lok Sabha to demand Indian Prime Minister Narendra Modi&#39;s presence during the ongoing debate on the fallout of demonetisation of Rs 1000 and 500 notes on November 8.

In the Lok Sabha, the Congress and some other Opposition parties insisted on a discussion on demonetisation under Rule 56, which entails voting and through an adjournment motion that implies the&nbsp;suspension of all other business.

On the other hand, in the Rajya Sabha, treasury benches also resorted to slogans after union minister Mukhtar Abbas Naqvi referred to the leader of the opposition Ghulam Nabi Azad&#39;s statement that more people had died because of demonetisation than had been killed in the Uri terror attack on September 18 this year.

Earlier, Trinamool Congress (TMC) members protested outside Parliament over the complications faced by the people after the demonetisation of Rs 500 and Rs 1,000 currency notes.

MPs Derek O&#39;Brien and Sudip Bandyopadhyay were among the protesters.

Last week, TMC head and West Bengal Chief Minister Mamata Banerjee met President Pranab Mukherjee along with leaders of National Conference and a few other opposition parties seeking the withdrawal of the demonetisation move.

Amid the pandemonium in the both houses, Prime Minister Narendra Modi met senior cabinet ministers in his chamber in Parliament to counter the opposition.

The Bharatiya Janata Party (BJP) has issued a whip to its party`s Rajya Sabha members, asking them to be present in the House for three days starting today.

Both the Houses of Parliament were adjourned last Friday following furore over the Centre`s move to scrap Rs 500 and Rs 1,000 currency notes.

(This article first appeared on Zee News)

Trinamool Congress members protested outside Parliament over the complications faced by the people after the demonetisation move

As soon as both houses convened for the day, members of the Opposition parties marched into the well of both Rajya Sabha and Lok Sabha to demand Indian Prime Minister Narendra Modi's presence during the ongoing debate on the fallout of demonetisation of Rs 1000 and 500 notes on November 8. In the Lok Sabha, the Congress and some other Opposition parties insisted on a discussion on demonetisation under Rule 56, which entails voting and through an adjournment motion that implies the suspension of all other business. On the other hand, in the Rajya Sabha, treasury benches also resorted to slogans after union minister Mukhtar Abbas Naqvi referred to the leader of the opposition Ghulam Nabi Azad's statement that more people had died because of demonetisation than had been killed in the Uri terror attack on September 18 this year. Earlier, Trinamool Congress (TMC) members protested outside Parliament over the complications faced by the people after the demonetisation of Rs 500 and Rs 1,000 currency notes. MPs Derek O'Brien and Sudip Bandyopadhyay were among the protesters. Last week, TMC head and West Bengal Chief Minister Mamata Banerjee met President Pranab Mukherjee along with leaders of National Conference and a few other opposition parties seeking the withdrawal of the demonetisation move. Amid the pandemonium in the both houses, Prime Minister Narendra Modi met senior cabinet ministers in his chamber in Parliament to counter the opposition. The Bharatiya Janata Party (BJP) has issued a whip to its party`s Rajya Sabha members, asking them to be present in the House for three days starting today. Both the Houses of Parliament were adjourned last Friday following furore over the Centre`s move to scrap Rs 500 and Rs 1,000 currency notes. (This article first appeared on Zee News)

Demonetisation: Opposition stalls Parliament, demands PM Modi's presence during debate

Warning people against depositing their unaccounted old currency in someone else&#39;s bank account , the tax department has decided to slap charges under the newly enforced Benami Transactions Act against violators that carries a penalty, prosecution and rigorous jail term of a maximum seven years.

Such instances where the suspicion is found to be true will be prosecuted under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property, that has been enforced from November 1 this year.

They said the Act empowers the taxman to confiscate and prosecute both the depositor and the person whose illegal money he or she has &quot;adjusted&quot; in their account.

&quot;The CBDT (Central Board of Direct Taxes) has asked the Income Tax department to closely monitor all such transactions where people are using bank accounts of other persons for hiding and converting into white their black money using the old currency notes of Rs 500 and Rs 1,000.

&quot;Already some instances have been reported in this regard and the department is set to issue notices under the Benami Act,&quot; the sources told PTI.

Primarily, they said, the notices will be issued in cases of huge cash deposits beyond the threshold of Rs 2.5 lakh but in cases where a suspicious report is received from the bank or the Financial Intelligence Unit below this threshold will also be investigated.

&quot;Such an arrangement where a person deposits old currency of Rs 500 and Rs 1000 in the bank account of another person with an understanding that the account holder shall return his money in new currency, the transaction shall be regarded as benami transaction under the said Act.

&quot;The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorised under this law as a benamidar,&quot; a senior official explained.

In a related development, official sources said that the department had detected over Rs 200 crore in undisclosed income after it conducted over 80 surveys and about 30 searches in cases of suspicious usage of the scrapped currency. About Rs 50 crore has also been seized in these operations since November 8 across various states, they said.

The sources said the taxman has initiated a country-wide operation to identify suspect bank accounts where huge cash deposits have been made after November 8, when government demonetised the Rs 500 and Rs 1,000 currency notes.

(PTI) 
&nbsp;

India's income tax department has decided to slap charges against violators under the newly enforced Benami Transactions Act

Warning people against depositing their unaccounted old currency in someone else's bank account , the tax department has decided to slap charges under the newly enforced Benami Transactions Act against violators that carries a penalty, prosecution and rigorous jail term of a maximum seven years. Such instances where the suspicion is found to be true will be prosecuted under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property, that has been enforced from November 1 this year. They said the Act empowers the taxman to confiscate and prosecute both the depositor and the person whose illegal money he or she has "adjusted" in their account. "The CBDT (Central Board of Direct Taxes) has asked the Income Tax department to closely monitor all such transactions where people are using bank accounts of other persons for hiding and converting into white their black money using the old currency notes of Rs 500 and Rs 1,000. "Already some instances have been reported in this regard and the department is set to issue notices under the Benami Act," the sources told PTI. Primarily, they said, the notices will be issued in cases of huge cash deposits beyond the threshold of Rs 2.5 lakh but in cases where a suspicious report is received from the bank or the Financial Intelligence Unit below this threshold will also be investigated. "Such an arrangement where a person deposits old currency of Rs 500 and Rs 1000 in the bank account of another person with an understanding that the account holder shall return his money in new currency, the transaction shall be regarded as benami transaction under the said Act. "The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorised under this law as a benamidar," a senior official explained. In a related development, official sources said that the department had detected over Rs 200 crore in undisclosed income after it conducted over 80 surveys and about 30 searches in cases of suspicious usage of the scrapped currency. About Rs 50 crore has also been seized in these operations since November 8 across various states, they said. The sources said the taxman has initiated a country-wide operation to identify suspect bank accounts where huge cash deposits have been made after November 8, when government demonetised the Rs 500 and Rs 1,000 currency notes. (PTI)

Demonetisation: Those involved in suspect cash deposits could face 7-year jail, warns Income Tax department

India&#39;s Income Tax department has come down strongly upon individuals and firms depositing unusually high amounts of demonetised Rs 500 and Rs 1000 currency in their accounts, issuing notices that ask for the source of the funds. &nbsp;

Hundreds of notices have been issued across the country after banks reported certain cases of &quot;unusual or suspicious volumes of cash deposits&quot; in their accounts, primarily beyond Rs 2.5 lakh, Indian news agency PTI reported.

The notices ask entities for supporting documents, books of accounts and bills to explain the unusual cash deposits, PTI reported.

&quot;If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years,&quot; an I-T department notice stated.

&quot;The notices are being issued where the department feels the cash deposits made in the demonetised currency is suspect. This is part of the vigil that the taxman has deployed to check instances of tax evasion, money laundering and black money in the wake of the demonetisation of the two high denomination currencies on November 8,&quot; income tax officials told PTI.

They disclosed that notices had been issued in cities and towns across the country under section 133 (6) of the Income Tax Act which deals with the power to call for information.

After Prime Minister Narendra Modi announced the demonitisation of 500 rupee and 1000 rupee notes on November 8, the department has also stepped up vigil against real estate players, bullion traders and suspected hawala operatives to check the illegal use of the scrapped currency and subsequent generation of black money, PTI reported.

The taxman has also deployed checks on cooperative banks. In Mangalore, it found that old currency worth Rs eight crore was exchanged by five societies which had accounts in a cooperative bank in the city.

The department also recently issued notices to hundreds of charitable and religious organisations in the country enjoying tax exemptions to inform them about their cash balances as of November 8.

The notices were issued in order to keep a check on possible &quot;accommodation&quot; of black money in old currency by way of charitable contributions or donations to the organisations.

Old notes can be exchanged or deposited until December 30, after which they will cease to hold any value. A person can exchange Rs 2000 worth of old money for new in a bank. The remaining amount must be deposited.

The amount of money that can be withdrawn from an ATM in a day is Rs 2500 for recalibrated machines. A savings account holder can withdraw up to Rs 24,000 per week from the bank which includes cash withdrawn from ATMs. A current account holder can withdraw upto Rs 50,000 in a week. The only exceptions to this rule are families where weddings are imminent where the withdrawal limits have been increased to Rs 2.5 lakh in a week. 
 
(WION with inputs from PTI)

The I-T department has asked individuals and firms depositing more than Rs 2.5 lakh for the source of their income

India's Income Tax department has come down strongly upon individuals and firms depositing unusually high amounts of demonetised Rs 500 and Rs 1000 currency in their accounts, issuing notices that ask for the source of the funds. Hundreds of notices have been issued across the country after banks reported certain cases of "unusual or suspicious volumes of cash deposits" in their accounts, primarily beyond Rs 2.5 lakh, Indian news agency PTI reported. The notices ask entities for supporting documents, books of accounts and bills to explain the unusual cash deposits, PTI reported. "If you are assessed to Income Tax, then you shall also file the copy of Income Tax Return of last two years," an I-T department notice stated. "The notices are being issued where the department feels the cash deposits made in the demonetised currency is suspect. This is part of the vigil that the taxman has deployed to check instances of tax evasion, money laundering and black money in the wake of the demonetisation of the two high denomination currencies on November 8," income tax officials told PTI. They disclosed that notices had been issued in cities and towns across the country under section 133 (6) of the Income Tax Act which deals with the power to call for information. After Prime Minister Narendra Modi announced the demonitisation of 500 rupee and 1000 rupee notes on November 8, the department has also stepped up vigil against real estate players, bullion traders and suspected hawala operatives to check the illegal use of the scrapped currency and subsequent generation of black money, PTI reported. The taxman has also deployed checks on cooperative banks. In Mangalore, it found that old currency worth Rs eight crore was exchanged by five societies which had accounts in a cooperative bank in the city. The department also recently issued notices to hundreds of charitable and religious organisations in the country enjoying tax exemptions to inform them about their cash balances as of November 8. The notices were issued in order to keep a check on possible "accommodation" of black money in old currency by way of charitable contributions or donations to the organisations. Old notes can be exchanged or deposited until December 30, after which they will cease to hold any value. A person can exchange Rs 2000 worth of old money for new in a bank. The remaining amount must be deposited. The amount of money that can be withdrawn from an ATM in a day is Rs 2500 for recalibrated machines. A savings account holder can withdraw up to Rs 24,000 per week from the bank which includes cash withdrawn from ATMs. A current account holder can withdraw upto Rs 50,000 in a week. The only exceptions to this rule are families where weddings are imminent where the withdrawal limits have been increased to Rs 2.5 lakh in a week. (WION with inputs from PTI)

Demonetisation: Income Tax notices for those depositing large amounts of cash

For Indian farmer Buddha Singh, who works a small plot of land in the village of Bajna south of New Delhi, the government&#39;s decision to abolish 500 and 1,000 rupee bank notes to crush the shadow economy could hardly have come at a worse time.

He and millions of other farmers cannot get enough cash to buy the seeds and fertilisers they need for their winter crops, threatening production of key commodities and hurting rural communities only just recovering after two years of drought.

&quot;We can&#39;t buy our full requirements of seeds, fertiliser and pesticides on credit. There is a limit,&quot; said Singh, a turbaned man in his 50s, who tills a two-acre field near the highway running from the capital to the holy city of Mathura.

&quot;We&#39;re running out of time as we&#39;ve only 10-15 days more to plant crops like wheat, mustard and chickpeas,&quot; he added, to murmurs of assent from around 30 fellow farmers sitting under a neem tree and discussing their predicament.

India&#39;s 263 million farmers mostly live in the cash economy, exposing them to the full impact of Prime Minister Narendra Modi&#39;s shock November 8 announcement that larger denomination bank notes would immediately cease to be legal tender.

Modi&#39;s drive to purge &quot;black cash&quot; from the economy has, at a stroke, wiped out 86 percent of the money in circulation. Delays in printing new 500 and 2,000 rupee notes mean that money could be tight for weeks to come.

While city dwellers are still queuing up to exchange or deposit old money at the bank, and to draw new funds, many villagers live miles from the nearest branch and have yet to see the new notes being rushed into circulation.

Dragged down

Delays to the planting season that began last month threaten to dent India&#39;s agricultural and overall economic growth, wiping out gains for farmers who this year cashed in on decent monsoon rains after being hit by drought in 2014 and 2015.

Farmers who have already spent money on ploughing and irrigation to keep the soil moist can ill afford to leave their land fallow. Late sowing typically reduces yields and increases the risk that inclement spring weather could damage crops.

&quot;In all likelihood we&#39;ll not be able to recover our cost of cultivation as the prime sowing time has nearly lapsed,&quot; said Prakash Chandra Sharma, another local farmer.

The farmers said they spent an average of 58,000 rupees ($855) per hectare to grow wheat, only to eke out an income of 70,000 rupees. That assumes a crop yield of about 3.2 tonnes per hectare.

A drop in wheat output would boost local prices that are already near record highs. Stocks are at their lowest level for nearly a decade, and even before the latest cash crunch, private traders were expected to import around 3 million tonnes this year.

Devinder Sharma, an independent food and trade policy analyst, said rural communities, in particular, would suffer from the demonetization move.

&quot;It&#39;s a little early to hazard a guess about the extent of crop loss,&quot; said Sharma. &quot;But both rural income and demand will take a big hit before things start improving from April next year.&quot;

Thanks, but no thanks

In the latest in a series of ad hoc steps, the government on Thursday allowed farmers to withdraw up to 25,000 rupees ($368) a week against their crop loans to ensure that sowing of winter crops &quot;takes place properly&quot;.

Shaktikanta Das, a top finance ministry official, also said a time limit for farmers to pay crop insurance premiums had been extended by 15 days.

But that cuts little ice with farmers, who often rely for their cash not on banks but on money lenders charging annual interest of up to 40 per cent.

&quot;Most farmers have already availed of their farm loan for the previous summer season and, for the handful who can still withdraw, the ceiling is too low,&quot; said Tejinder Narang, a New-Delhi-based farm expert.

After selling their rice crop last month, many are stuck with old 500 and 1,000 bills they can no longer spend.

They are only allowed to exchange 2,000 rupees into new money, and the rest must be deposited before the notes cease to be accepted by banks after December 30.

&quot;Four banks cater to 200 villages of about 2,000 people each. It&#39;s not easy to get your old currency notes converted,&quot; said Harbir Singh, another local farmer.

Markets idled

The breakdown in the cash economy is causing major disruptions to the supply of produce to India&#39;s cities, with payment alternatives such as plastic cards or digital wallet apps on smartphones yet to gain widespread acceptance.

At Delhi&#39;s Azadpur Mandi, Asia&#39;s largest fruit and vegetable wholesale market, traders said business was at a virtual standstill, and labourers who usually earn between $4 and $6 a day sat idle.

&quot;The bosses are giving us 500 rupee bills, but we are refusing to take those notes,&quot; said porter Raju Kumar Rathore. &quot;Then they are telling us to collect our money after a week or 10 days. For us, that is a big problem.&quot;

(Reuters)

They are left without the cash needed to buy seeds and fertiliser for their winter crops

For Indian farmer Buddha Singh, who works a small plot of land in the village of Bajna south of New Delhi, the government's decision to abolish 500 and 1,000 rupee bank notes to crush the shadow economy could hardly have come at a worse time. He and millions of other farmers cannot get enough cash to buy the seeds and fertilisers they need for their winter crops, threatening production of key commodities and hurting rural communities only just recovering after two years of drought. "We can't buy our full requirements of seeds, fertiliser and pesticides on credit. There is a limit," said Singh, a turbaned man in his 50s, who tills a two-acre field near the highway running from the capital to the holy city of Mathura. "We're running out of time as we've only 10-15 days more to plant crops like wheat, mustard and chickpeas," he added, to murmurs of assent from around 30 fellow farmers sitting under a neem tree and discussing their predicament. India's 263 million farmers mostly live in the cash economy, exposing them to the full impact of Prime Minister Narendra Modi's shock November 8 announcement that larger denomination bank notes would immediately cease to be legal tender. Modi's drive to purge "black cash" from the economy has, at a stroke, wiped out 86 percent of the money in circulation. Delays in printing new 500 and 2,000 rupee notes mean that money could be tight for weeks to come. While city dwellers are still queuing up to exchange or deposit old money at the bank, and to draw new funds, many villagers live miles from the nearest branch and have yet to see the new notes being rushed into circulation. Dragged down Delays to the planting season that began last month threaten to dent India's agricultural and overall economic growth, wiping out gains for farmers who this year cashed in on decent monsoon rains after being hit by drought in 2014 and 2015. Farmers who have already spent money on ploughing and irrigation to keep the soil moist can ill afford to leave their land fallow. Late sowing typically reduces yields and increases the risk that inclement spring weather could damage crops. "In all likelihood we'll not be able to recover our cost of cultivation as the prime sowing time has nearly lapsed," said Prakash Chandra Sharma, another local farmer. The farmers said they spent an average of 58,000 rupees ($855) per hectare to grow wheat, only to eke out an income of 70,000 rupees. That assumes a crop yield of about 3.2 tonnes per hectare. A drop in wheat output would boost local prices that are already near record highs. Stocks are at their lowest level for nearly a decade, and even before the latest cash crunch, private traders were expected to import around 3 million tonnes this year. Devinder Sharma, an independent food and trade policy analyst, said rural communities, in particular, would suffer from the demonetization move. "It's a little early to hazard a guess about the extent of crop loss," said Sharma. "But both rural income and demand will take a big hit before things start improving from April next year." Thanks, but no thanks In the latest in a series of ad hoc steps, the government on Thursday allowed farmers to withdraw up to 25,000 rupees ($368) a week against their crop loans to ensure that sowing of winter crops "takes place properly". Shaktikanta Das, a top finance ministry official, also said a time limit for farmers to pay crop insurance premiums had been extended by 15 days. But that cuts little ice with farmers, who often rely for their cash not on banks but on money lenders charging annual interest of up to 40 per cent. "Most farmers have already availed of their farm loan for the previous summer season and, for the handful who can still withdraw, the ceiling is too low," said Tejinder Narang, a New-Delhi-based farm expert. After selling their rice crop last month, many are stuck with old 500 and 1,000 bills they can no longer spend. They are only allowed to exchange 2,000 rupees into new money, and the rest must be deposited before the notes cease to be accepted by banks after December 30. "Four banks cater to 200 villages of about 2,000 people each. It's not easy to get your old currency notes converted," said Harbir Singh, another local farmer. Markets idled The breakdown in the cash economy is causing major disruptions to the supply of produce to India's cities, with payment alternatives such as plastic cards or digital wallet apps on smartphones yet to gain widespread acceptance. At Delhi's Azadpur Mandi, Asia's largest fruit and vegetable wholesale market, traders said business was at a virtual standstill, and labourers who usually earn between $4 and $6 a day sat idle. "The bosses are giving us 500 rupee bills, but we are refusing to take those notes," said porter Raju Kumar Rathore. "Then they are telling us to collect our money after a week or 10 days. For us, that is a big problem." (Reuters)

Demonetisation: Indian farmers fear lost crops and income after black money move

Faced with liquidity comfort, major lenders, including ICICI and HDFC Bank, today lowered FD rates by up to 0.25 per cent in view of surge in deposits following the demonetisation.

The lowering in fixed deposit rates may herald reduction in lending rate as well in the next few days.

For fixed deposit between 390 days to 2 years, the banks has lowered the interest rate by 0.15 per cent effective yesterday, ICICI Bank website showed. ICICI Bank will pay 7.10 per cent as against 7.25 per cent earlier.

Meanwhile, HDFC Bank has reduced interest rate by 0.25 per cent across all tenures on bulk deposits ranging between Rs 1-5 crore. The new rates are effective today, as per HDFC Bank website.

With the revised interest rates, the one-year fixed deposit will attract an interest rate of 6.75 per cent as against the 7 per cent earlier.

For fixed deposits between &#39;3 years 1 day-5 years&#39;, the rate has been lowered to 6.5 per cent from 6.75 per cent.

Yesterday, the country&#39;s largest lender SBI slashed fixed deposit rates on select maturities by up to 0.15 per cent.

Private lender Axis Bank has cut marginal cost of fund-based lending rate (MCLR) by 0.15-0.20 per cent.

Till yesterday, SBI collected Rs 1,14,139 crore in deposits over the last seven days after the government announced to scrap Rs 500 and Rs 1,000 notes.

(PTI)

&nbsp;

The lowering in fixed deposit rates may herald reduction in lending rate as well in the next few days

Faced with liquidity comfort, major lenders, including ICICI and HDFC Bank, today lowered FD rates by up to 0.25 per cent in view of surge in deposits following the demonetisation. The lowering in fixed deposit rates may herald reduction in lending rate as well in the next few days. For fixed deposit between 390 days to 2 years, the banks has lowered the interest rate by 0.15 per cent effective yesterday, ICICI Bank website showed. ICICI Bank will pay 7.10 per cent as against 7.25 per cent earlier. Meanwhile, HDFC Bank has reduced interest rate by 0.25 per cent across all tenures on bulk deposits ranging between Rs 1-5 crore. The new rates are effective today, as per HDFC Bank website. With the revised interest rates, the one-year fixed deposit will attract an interest rate of 6.75 per cent as against the 7 per cent earlier. For fixed deposits between '3 years 1 day-5 years', the rate has been lowered to 6.5 per cent from 6.75 per cent. Yesterday, the country's largest lender SBI slashed fixed deposit rates on select maturities by up to 0.15 per cent. Private lender Axis Bank has cut marginal cost of fund-based lending rate (MCLR) by 0.15-0.20 per cent. Till yesterday, SBI collected Rs 1,14,139 crore in deposits over the last seven days after the government announced to scrap Rs 500 and Rs 1,000 notes. (PTI)

Cash flood: ICICI, HDFC Bank cut fixed deposit rates by 0.25%

Chief ministers Arvind Kejriwal and Mamata Banerjee held a protest outside Reserve Bank of India in Delhi on Thursday, press Trust of India reported.

The AAP chief asked the government to roll back demonetisation in three days while the TMC supremo said such a crisis was not seen even during Emergency.

Addressing a rally in Delhi, Kejriwal alleged that demonetisation was the &quot;biggest scam&quot; in independent India&#39;s history while Banerjee said Modi should not run the country through &quot;dictatorship&quot;, calling the protest a fight to save the country.

The Delhi chief minister alleged that demonetisation was being carried out to write-off around $118 billion (Rs 8 lakh crore) of loan owed by Modi&#39;s &quot;corporate friends&quot; by collecting about $147 billion (Rs 10 lakh crore) from the people through the exercise.

&quot;Black money is flooding the market again. Notes are being home delivered to some people. This is independent India&#39;s biggest scam. The government wants to amass $147 billion by forcing the people to deposit their money in banks and use that amount to write off loans of Modiji&#39;s friends.

&quot;Modiji sent Vijay Mallya, who has huge debt, to London one night. He has also brought people to the streets (following demonetisation). People are being cheated. Why did IT not raid former BJP Minister G Janardana Reddy who spent Rs 500 crores ($5 billion) in his daughter&#39;s wedding? And they want us common people to spend Rs 2.5 lakh ($3686) in a wedding,&quot; he said.

Kejriwal also took a dig at finance minister Arun Jaitley wondering if he spent only Rs 2.5 lakh ($3686) in his daughter&#39;s wedding recently.

&quot;Modiji, do not fool people saying standing in line is patriotism. Who is responsible for the death of 40 people standing in queues?&quot; he said, addressing traders at Azadpur wholesale fruit and vegetable market.

(PTI)

AAP chief demanded the roll back of demonetisation in three days while Banerjee said such a crisis was not seen even during Emergency

Chief ministers Arvind Kejriwal and Mamata Banerjee held a protest outside Reserve Bank of India in Delhi on Thursday, press Trust of India reported. The AAP chief asked the government to roll back demonetisation in three days while the TMC supremo said such a crisis was not seen even during Emergency. Addressing a rally in Delhi, Kejriwal alleged that demonetisation was the "biggest scam" in independent India's history while Banerjee said Modi should not run the country through "dictatorship", calling the protest a fight to save the country. The Delhi chief minister alleged that demonetisation was being carried out to write-off around $118 billion (Rs 8 lakh crore) of loan owed by Modi's "corporate friends" by collecting about $147 billion (Rs 10 lakh crore) from the people through the exercise. "Black money is flooding the market again. Notes are being home delivered to some people. This is independent India's biggest scam. The government wants to amass $147 billion by forcing the people to deposit their money in banks and use that amount to write off loans of Modiji's friends. "Modiji sent Vijay Mallya, who has huge debt, to London one night. He has also brought people to the streets (following demonetisation). People are being cheated. Why did IT not raid former BJP Minister G Janardana Reddy who spent Rs 500 crores ($5 billion) in his daughter's wedding? And they want us common people to spend Rs 2.5 lakh ($3686) in a wedding," he said. Kejriwal also took a dig at finance minister Arun Jaitley wondering if he spent only Rs 2.5 lakh ($3686) in his daughter's wedding recently. "Modiji, do not fool people saying standing in line is patriotism. Who is responsible for the death of 40 people standing in queues?" he said, addressing traders at Azadpur wholesale fruit and vegetable market. (PTI)

Demonetisation: Arvind Kejriwal, Mamata Banerjee protest outside Reserve Bank of India

Banks across India on Wednesday (November 16) began use of indelible ink marks to ensure people only change old notes once under Prime Minister Narendra Modi&#39;s scheme to fight &quot;black money&quot;, resorting to a tactic used to prevent multiple voting in elections.

Finance ministry had on Tuesday (November 15) directed banks to use indelible ink to prevent &quot;unscrupulous persons&quot; from sending people from one bank branch to the next to exchange abolished 500 and 1000 rupees bank notes.

As per the government statement, 11 branches of SBI are using the method to weed out customers queuing up again and again to exchange invalid currency notes.&nbsp;As per the Standard Operating Procedure (SOP) for exchanging notes, concerned bank branches and post offices would put indelible ink mark on the right index finger of the customer so as to identify that he/she has exchanged the old currency notes once. The&nbsp;indelible ink can be applied by the cashier or any other official designated by the bank.

Hailing the move, a customer in northern Ludhiana city, Priyanka Kashyap, said the measure introduced by the finance ministry would prevent people from exchanging the currency notes multiple times.

&quot;This system is absolutely correct. Nobody can cheat now and come for a number of times. It proves that nobody can collect the payment twice,&quot; said Kashyap.

The government only gave people a few hours notice before the old 500 and 1,000 rupee bank notes - which accounted for 86 per cent of cash in circulation - were scrapped.

The demonetisation of two of India&#39;s largest currency notes has left millions high and dry and threatens to bring much of the cash-driven economy to a halt.

Bank authorities, meanwhile, said the customers have welcomed the move and things were going smoothly.

&quot;We started with applying ink from today after the government&#39;s and bank&#39;s instructions. So, whosoever is withdrawing the limit of INR 4,500 ($67 US) we are applying ink on their fingers. Everybody is satisfied and coming in queues. Everybody is disciplined. We are not facing any problem. Everything is properly managed,&quot; said Union Bank branch manager in Ludhiana city, B S&nbsp;Ralan.

Some people, however, criticised the move saying it was only a precautionary measure and not a permanent solution to check people from exchanging old notes from different banks.

&quot;The concept of applying ink is also good but it can only be a precaution check but it cannot be a solution. There can only be a solution if there is enough cash in the banks and ATMs,&quot; said Delhi resident Vikram Dahiya.

To begin with, this procedure is being introduced&nbsp;in the metro cities and will be expanded to other areas later, the RBI said in a statement.&nbsp;The indelible ink is supplied to the bank/post offices by Indian Banks&#39; Association (IBA) in coordination with the banks and consultation with RBI.

(PTI)

Eleven branches of SBI are using the method to weed out customers queuing up again and again to exchange invalid currency notes

Banks across India on Wednesday (November 16) began use of indelible ink marks to ensure people only change old notes once under Prime Minister Narendra Modi's scheme to fight "black money", resorting to a tactic used to prevent multiple voting in elections. Finance ministry had on Tuesday (November 15) directed banks to use indelible ink to prevent "unscrupulous persons" from sending people from one bank branch to the next to exchange abolished 500 and 1000 rupees bank notes. As per the government statement, 11 branches of SBI are using the method to weed out customers queuing up again and again to exchange invalid currency notes. As per the Standard Operating Procedure (SOP) for exchanging notes, concerned bank branches and post offices would put indelible ink mark on the right index finger of the customer so as to identify that he/she has exchanged the old currency notes once. The indelible ink can be applied by the cashier or any other official designated by the bank. Hailing the move, a customer in northern Ludhiana city, Priyanka Kashyap, said the measure introduced by the finance ministry would prevent people from exchanging the currency notes multiple times. "This system is absolutely correct. Nobody can cheat now and come for a number of times. It proves that nobody can collect the payment twice," said Kashyap. The government only gave people a few hours notice before the old 500 and 1,000 rupee bank notes - which accounted for 86 per cent of cash in circulation - were scrapped. The demonetisation of two of India's largest currency notes has left millions high and dry and threatens to bring much of the cash-driven economy to a halt. Bank authorities, meanwhile, said the customers have welcomed the move and things were going smoothly. "We started with applying ink from today after the government's and bank's instructions. So, whosoever is withdrawing the limit of INR 4,500 ($67 US) we are applying ink on their fingers. Everybody is satisfied and coming in queues. Everybody is disciplined. We are not facing any problem. Everything is properly managed," said Union Bank branch manager in Ludhiana city, B S Ralan. Some people, however, criticised the move saying it was only a precautionary measure and not a permanent solution to check people from exchanging old notes from different banks. "The concept of applying ink is also good but it can only be a precaution check but it cannot be a solution. There can only be a solution if there is enough cash in the banks and ATMs," said Delhi resident Vikram Dahiya. To begin with, this procedure is being introduced in the metro cities and will be expanded to other areas later, the RBI said in a statement. The indelible ink is supplied to the bank/post offices by Indian Banks' Association (IBA) in coordination with the banks and consultation with RBI. (PTI)

Demonetisation: Banks use indelible ink to check repeat money exchange

India today lowered the exchange limit for now-defunct 500 and 1,000 rupee notes to Rs 2,000 from the existing cap of Rs 4,500, effective tomorrow.

Among other measures, it has allowed up to Rs 2.5 lakh cash withdrawal from the&nbsp;bank account of a bride or groom or their parents for a marriage during the ongoing wedding season.

&quot;To enable a&nbsp;larger number of people to get the&nbsp;benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow,&quot; economic affairs secretary Shaktikanta Das told reporters.

The over-the-counter exchange of Rs 500/1,000 in return of new currency will be available &quot;once per person till December 30&quot;.

&quot;This will enable larger number of people to exchange notes. There is no cash shortage and enough cash is available,&quot; he said.

The Reserve Bank today asked people not to hoard currency.

&quot;The Reserve Bank of India has once again clarified today that there is sufficient supply of notes consequent upon increased production which started nearly two months ago. Members of public are requested not to panic or hoard currency notes,&quot; the central bank said in a statement.

The decision comes a day after the government directed banks to put indelible ink mark on the right index finger of persons to screen them from using the exchange facility more than once.

Prime Minister Narendra Modi had on November 8 demonetised Rs 500 and Rs 1,000 notes in his bigger war against black money, terror financing and counterfeit notes.

Since then a lot of representations have come to Prime Minister and Finance Minister to ease withdrawal norms for wedding purposes.

&quot;This has been considered by the government and decided that for wedding ceremonies, up to Rs 2.5 lakh will be allowed to be withdrawn from account if father or mother or the bride and groom,&quot; Das said.

He said the account has to be KYC compliant and self-declaration has to be given to the bank. The Rs 2.5 lakh can be withdrawn from only one account.

(PTI)

The government, however, has allowed brides, grooms or their parents to withdraw up to Rs 2.5 lakh (about $3,700) from their bank accounts

India today lowered the exchange limit for now-defunct 500 and 1,000 rupee notes to Rs 2,000 from the existing cap of Rs 4,500, effective tomorrow. Among other measures, it has allowed up to Rs 2.5 lakh cash withdrawal from the bank account of a bride or groom or their parents for a marriage during the ongoing wedding season. "To enable a larger number of people to get the benefit of over-the-counter exchange of Rs 500 and Rs 1,000 notes, the existing limit of Rs 4,500 will be reduced to Rs 2,000 with effect from tomorrow," economic affairs secretary Shaktikanta Das told reporters. The over-the-counter exchange of Rs 500/1,000 in return of new currency will be available "once per person till December 30". "This will enable larger number of people to exchange notes. There is no cash shortage and enough cash is available," he said. The Reserve Bank today asked people not to hoard currency. "The Reserve Bank of India has once again clarified today that there is sufficient supply of notes consequent upon increased production which started nearly two months ago. Members of public are requested not to panic or hoard currency notes," the central bank said in a statement. The decision comes a day after the government directed banks to put indelible ink mark on the right index finger of persons to screen them from using the exchange facility more than once. Prime Minister Narendra Modi had on November 8 demonetised Rs 500 and Rs 1,000 notes in his bigger war against black money, terror financing and counterfeit notes. Since then a lot of representations have come to Prime Minister and Finance Minister to ease withdrawal norms for wedding purposes. "This has been considered by the government and decided that for wedding ceremonies, up to Rs 2.5 lakh will be allowed to be withdrawn from account if father or mother or the bride and groom," Das said. He said the account has to be KYC compliant and self-declaration has to be given to the bank. The Rs 2.5 lakh can be withdrawn from only one account. (PTI)

Demonetisation: Govt tightens notes exchange norms, lowers limit to Rs 2,000

Defending the ruling government&#39;s decision on demonetisation, minister of state for power, coal, new and renewable energy and mines Piyush Goyal on Wednesday said that this move has honoured the honest while troubled the dishonest.

&quot;The entire nation is welcoming this step of the government. When the Prime Minister was elected, he was elected on a mandate to curb corruption and black money. For the first time, the honest have been honoured and the dishonest have been troubled. There is no obstruction on the money earned by honest means. This is no curb on anyone`s honest income. This move attacks those who have illicit cash,&quot; Goyal said in the Rajya Sabha.

&quot;We never referred to this move as a surgical strike. If Anand Sharma ji calls it that then we consider it an endorsement of demonetisation. I appeal to the people, please be assured your honest income is not in any danger. You have till 30th December to exchange or deposit old notes, please don`t panic,&quot; he added.

Goyal further said that the people of the country brought the BJP-led NDA to power in 2014 after imposing their trust on Narendra Modi.

&quot;Almost 86 per cent of the Indian currency was in Rs. 500 and Rs. 1,000 notes. Given the high ratio, it seemed obvious that a lot of it was hidden,&quot; he added.

Asserting that demonetisation is an important decision which warned the black money hoarders that there is no room for black money in the economy, Goyal said the honest can go and deposit their money without fear in the banks.

&quot;Slowly and steadily the queues at the banks have been decreasing and the people are willing to face the difficulty for few days, as the decision stands in favour of the nation. Also with the new Rs. 500 and Rs. 2,000 notes in banks, the people are happy,&quot; he added.

Goyal further said that the Reserve Bank of India (RBI) runs the monetary policy, adding this decision was taken after consultation with the central bank.

Lashing out at the government, Congress leader Anand Sharma earlier during the discussion said that an atmosphere has been created by the BJP-led NDA regime wherein questioning the government has become the parameter to decide one`s nationalism.

Sharma said, &quot;I condemn the PM&#39;s statement in Goa for mocking the people, who are standing in queues. He must apologise.&quot; Continuing his outburst against the government, Sharma alleged that the ruling dispensation has brought &quot;financial anarchy&quot; with its move to demonetise high value currency notes.

Sharma said the whole world got the impression that India`s economy runs on black money.

Lashing out at Prime Minister Narendra Modi&#39;s comment that the currency ban would help fight black money and draw out undeclared wealth, Sharma said, &quot;Everyone has become a surgeon, everything is becoming a surgical strike.&quot;

(ANI)

Piyush Goyal said that 'the nation is welcoming this step of the government'

Defending the ruling government's decision on demonetisation, minister of state for power, coal, new and renewable energy and mines Piyush Goyal on Wednesday said that this move has honoured the honest while troubled the dishonest. "The entire nation is welcoming this step of the government. When the Prime Minister was elected, he was elected on a mandate to curb corruption and black money. For the first time, the honest have been honoured and the dishonest have been troubled. There is no obstruction on the money earned by honest means. This is no curb on anyone`s honest income. This move attacks those who have illicit cash," Goyal said in the Rajya Sabha. "We never referred to this move as a surgical strike. If Anand Sharma ji calls it that then we consider it an endorsement of demonetisation. I appeal to the people, please be assured your honest income is not in any danger. You have till 30th December to exchange or deposit old notes, please don`t panic," he added. Goyal further said that the people of the country brought the BJP-led NDA to power in 2014 after imposing their trust on Narendra Modi. "Almost 86 per cent of the Indian currency was in Rs. 500 and Rs. 1,000 notes. Given the high ratio, it seemed obvious that a lot of it was hidden," he added. Asserting that demonetisation is an important decision which warned the black money hoarders that there is no room for black money in the economy, Goyal said the honest can go and deposit their money without fear in the banks. "Slowly and steadily the queues at the banks have been decreasing and the people are willing to face the difficulty for few days, as the decision stands in favour of the nation. Also with the new Rs. 500 and Rs. 2,000 notes in banks, the people are happy," he added. Goyal further said that the Reserve Bank of India (RBI) runs the monetary policy, adding this decision was taken after consultation with the central bank. Lashing out at the government, Congress leader Anand Sharma earlier during the discussion said that an atmosphere has been created by the BJP-led NDA regime wherein questioning the government has become the parameter to decide one`s nationalism. Sharma said, "I condemn the PM's statement in Goa for mocking the people, who are standing in queues. He must apologise." Continuing his outburst against the government, Sharma alleged that the ruling dispensation has brought "financial anarchy" with its move to demonetise high value currency notes. Sharma said the whole world got the impression that India`s economy runs on black money. Lashing out at Prime Minister Narendra Modi's comment that the currency ban would help fight black money and draw out undeclared wealth, Sharma said, "Everyone has become a surgeon, everything is becoming a surgical strike." (ANI)

India's coal minister defends demonetisation, says 'honest has been honoured'

Indian skipper Virat Kohli has been &quot;really impressed&quot; by Prime Minister Narendra Modi`s demonetisation drive aimed at curbing black money and corruption, describing it as the &quot;greatest move&quot; he had seen so far in the Indian politics.

&quot;It&#39;s the greatest move that I have seen in the Indian politics by far; hands down, really impressed,&quot; Kohli said on the eve of the second Test in Visakhapatnam.

Sharing an incident as to how he forgot that old notes were no longer in use, Kohli said, &quot;I was actually going to pay my hotel bills in Rajkot and I was taking out the old money and I forgot that it isn&#39;t of any use anymore.&quot;

The Prime Minister, in a televised address to the nation, had declared that high denomination notes of Rs 500 and Rs 1000 will no longer be legal tender from November 8-9 midnight.

He had said the government has declared a &quot;decisive war&quot; against black money and corruption.

(ANI)

'It's the greatest move that I have seen in Indian politics by far; hands down, really impressed', Kohli said

Indian skipper Virat Kohli has been "really impressed" by Prime Minister Narendra Modi`s demonetisation drive aimed at curbing black money and corruption, describing it as the "greatest move" he had seen so far in the Indian politics. "It's the greatest move that I have seen in the Indian politics by far; hands down, really impressed," Kohli said on the eve of the second Test in Visakhapatnam. Sharing an incident as to how he forgot that old notes were no longer in use, Kohli said, "I was actually going to pay my hotel bills in Rajkot and I was taking out the old money and I forgot that it isn't of any use anymore." The Prime Minister, in a televised address to the nation, had declared that high denomination notes of Rs 500 and Rs 1000 will no longer be legal tender from November 8-9 midnight. He had said the government has declared a "decisive war" against black money and corruption. (ANI)

'Impressed' cricketer Kohli hails demonetisation as 'greatest move in Indian politics'

Minister of state in the Prime Minister&#39;s Office (PMO) Jitendra Singh on Wednesday hailed demonetisation as a &quot;historic&quot; decision and expressed his gratitude to the common man for imposing their conviction in Prime Minister Narendra Modi despite the initial inconvenience.

&quot;More gratifying is that in spite of initial inconvenience because of the transition period, the common man of this country is fully cooperative and confident in the courage and conviction of the honourable Prime Minister,&quot; Singh told mediapersons outside the parliament.

&quot;The government is ready for any kind of discussion in the house. The longer the discussion is, more elaborate would be its discussion and the more government will have opportunity to explain to the people of this country about the enormous advantages of this historic decision, which I believe is once in a century decision. So, the discussion is indeed welcomed from the point of view of government as well,&quot; he added while attempting to silence all critics.

The Rajya Sabha is presently discussion demonetisation on the opening day of the Winter Session. The Upper House suspended the listed business for the day on the demand by the Opposition parties, which had given notices.

Prime Minister Modi earlier today called for a healthy debate on various issues including the Goods and Services Tax (GST) during the Winter Session of Parliament.

(ANI)

The minister of state in the Prime Minister's Office expressed his gratitude to the common man for their cooperation despite inconvenience

Minister of state in the Prime Minister's Office (PMO) Jitendra Singh on Wednesday hailed demonetisation as a "historic" decision and expressed his gratitude to the common man for imposing their conviction in Prime Minister Narendra Modi despite the initial inconvenience. "More gratifying is that in spite of initial inconvenience because of the transition period, the common man of this country is fully cooperative and confident in the courage and conviction of the honourable Prime Minister," Singh told mediapersons outside the parliament. "The government is ready for any kind of discussion in the house. The longer the discussion is, more elaborate would be its discussion and the more government will have opportunity to explain to the people of this country about the enormous advantages of this historic decision, which I believe is once in a century decision. So, the discussion is indeed welcomed from the point of view of government as well," he added while attempting to silence all critics. The Rajya Sabha is presently discussion demonetisation on the opening day of the Winter Session. The Upper House suspended the listed business for the day on the demand by the Opposition parties, which had given notices. Prime Minister Modi earlier today called for a healthy debate on various issues including the Goods and Services Tax (GST) during the Winter Session of Parliament. (ANI)

Indian minister lauds nation for trusting prime minister's 'historic' demonetisation move

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