By &nbsp;Arghya &nbsp;Roy Chowdhury

The mother of all battles,&nbsp;kickstarts in Uttar Pradesh from Saturday. The importance of UP in India&#39;s electoral politics can&#39;t be overstated. Not only does it have the highest number of Lok Sabha seats, it also has given more prime ministers than any other state in the country.

The state is so important, even Narendra Modi had to contest from Varanasi to leverage his own charisma to get Bharatiya Janata Party home.

The frenzy generated by Modi mixed with an electorate divided along communal lines, ensured that BJP managed to virtually sweep the entire state. But this time the situation is bit different, and one of the main reasons is the alliance between Congress and SP.

The first phase, where 73 constituencies are going to polls are spread across 15 districts. They are Shamli, Muzaffarnagar, Baghpat, Meerut, Ghaziabad, Gautam Buddha Nagar, Hapur, Bulandshahr, Aligarh, Mathura, Hathras, Agra, Firozabad, Etah and Kasganj.

Many of these districts are communally sensitive and the Muzaffarnagar riots in 2013 greatly affected the voting patterns in 2014. One of the biggest puzzles of this phase would be whether people chose to vote along religious lines or go back to their usual pattern of caste-based identities.

One party which would be hedging their bets for the&nbsp;conventional order to resume is Ajit Singh&#39;s Rashtriya Lok Dal (RLD). A party predominantly asserting the Jat identity, its message resonates well in the sugarcane-soaked Jat heartlands.

The party won 9 of out 73 seats, in the last Assembly elections and was on the cusp of stitching up an alliance with SP and Congress before talks fell through.

RLD still enjoys decent clout and may upset equations in several constituencies where close contest is on cards.In the last elections, SP and BSP both won 11 seats out of the 73 up for grabs on Saturday.

For BSP, this is a crucial phase as many of the seats have a&nbsp;strong concentration of Dalits and Muslim, once Mayawati&#39;s favourite hunting ground.

But it will be up for a stiff concentration with Owaisi&#39;s AIMIM in contention and SP and Congress fighting together. Congress has been a marginal player in Western UP for decades now, but it will try to galvanise the upper-caste votes for SP.

But no other party has more riding on phase one than the BJP. A good start will give it much-needed momentum to march towards the majority mark.

The party has made a major gamble by not putting up a CM face. It hopes that carpet-bombing by top leaders including Modi and Shah will do the trick.

Some of the top BJP candidates contesting in this phase are Rajnath Singh&#39;s son, Hukum Singh&#39;s daughter and controversial leaders like Sangeet Som and Suresh Rana.

In some of the more urbane districts like Noida and Agra, the party is likely to perform well.

The issues which have dominated the campaign cycle so far have been demonetisation, the law-and-order situation, communal disharmony, lack of industries and the informal sector facing a&nbsp;crisis.

Of which the opposition have tried to skewer BJP on demonetisation. Western UP is the hub of small scale industries, many of them been adversely affected by the&nbsp;cash crunch.

The SP government is facing the heat for poor law and order condition, especially it&#39;s ham-handed handling of the riots.

While Western UP is no longer the communal tinderbox it was in 2014, undercurrents of deep religious disharmony permeate till this day. And politicians of all hue have tried to exploit that according to their vote banks.

Both SP and BSP will be pretty happy if they can hold on to their 2012 tally.

For BJP, a good start is extremely necessary. PM Modi has given a clarion call for voting out SCAM (Samajwadi-Congress-Akhilesh-Maywati) which got an angry response from others.

Amit Shah has made a bold prediction that BJP will win 90 out of 143 seats in the first two phases.So, BJP is looking for high strike rate in Western UP to make up for its organisational weakness in other phases. Others will be desperate to deny them the perfect start.

&nbsp;

(This report first appeared in DNA)

Not only does UP have the highest number of Lok Sabha seats, it also has given more prime ministers than any other state in the country

By Arghya Roy Chowdhury The mother of all battles, kickstarts in Uttar Pradesh from Saturday. The importance of UP in India's electoral politics can't be overstated. Not only does it have the highest number of Lok Sabha seats, it also has given more prime ministers than any other state in the country. The state is so important, even Narendra Modi had to contest from Varanasi to leverage his own charisma to get Bharatiya Janata Party home. The frenzy generated by Modi mixed with an electorate divided along communal lines, ensured that BJP managed to virtually sweep the entire state. But this time the situation is bit different, and one of the main reasons is the alliance between Congress and SP. The first phase, where 73 constituencies are going to polls are spread across 15 districts. They are Shamli, Muzaffarnagar, Baghpat, Meerut, Ghaziabad, Gautam Buddha Nagar, Hapur, Bulandshahr, Aligarh, Mathura, Hathras, Agra, Firozabad, Etah and Kasganj. Many of these districts are communally sensitive and the Muzaffarnagar riots in 2013 greatly affected the voting patterns in 2014. One of the biggest puzzles of this phase would be whether people chose to vote along religious lines or go back to their usual pattern of caste-based identities. One party which would be hedging their bets for the conventional order to resume is Ajit Singh's Rashtriya Lok Dal (RLD). A party predominantly asserting the Jat identity, its message resonates well in the sugarcane-soaked Jat heartlands. The party won 9 of out 73 seats, in the last Assembly elections and was on the cusp of stitching up an alliance with SP and Congress before talks fell through. RLD still enjoys decent clout and may upset equations in several constituencies where close contest is on cards.In the last elections, SP and BSP both won 11 seats out of the 73 up for grabs on Saturday. For BSP, this is a crucial phase as many of the seats have a strong concentration of Dalits and Muslim, once Mayawati's favourite hunting ground. But it will be up for a stiff concentration with Owaisi's AIMIM in contention and SP and Congress fighting together. Congress has been a marginal player in Western UP for decades now, but it will try to galvanise the upper-caste votes for SP. But no other party has more riding on phase one than the BJP. A good start will give it much-needed momentum to march towards the majority mark. The party has made a major gamble by not putting up a CM face. It hopes that carpet-bombing by top leaders including Modi and Shah will do the trick. Some of the top BJP candidates contesting in this phase are Rajnath Singh's son, Hukum Singh's daughter and controversial leaders like Sangeet Som and Suresh Rana. In some of the more urbane districts like Noida and Agra, the party is likely to perform well. The issues which have dominated the campaign cycle so far have been demonetisation, the law-and-order situation, communal disharmony, lack of industries and the informal sector facing a crisis. Of which the opposition have tried to skewer BJP on demonetisation. Western UP is the hub of small scale industries, many of them been adversely affected by the cash crunch. The SP government is facing the heat for poor law and order condition, especially it's ham-handed handling of the riots. While Western UP is no longer the communal tinderbox it was in 2014, undercurrents of deep religious disharmony permeate till this day. And politicians of all hue have tried to exploit that according to their vote banks. Both SP and BSP will be pretty happy if they can hold on to their 2012 tally. For BJP, a good start is extremely necessary. PM Modi has given a clarion call for voting out SCAM (Samajwadi-Congress-Akhilesh-Maywati) which got an angry response from others. Amit Shah has made a bold prediction that BJP will win 90 out of 143 seats in the first two phases.So, BJP is looking for high strike rate in Western UP to make up for its organisational weakness in other phases. Others will be desperate to deny them the perfect start. (This report first appeared in DNA)

India: First phase of Uttar Pradesh elections could make or break BJP's dream to rule

A meeting was held in the Prime Ministers Office which included senior officers of various departments to review the functioning of &lsquo;shell companies&rsquo; (companies which do&nbsp;not conduct any operations and indulge in money laundering) in India, in order to prevent&nbsp;money laundering and tax evasion, especially in the context of unearthing black money post-demonetisation.&nbsp;

There are about 15 lakh registered companies in India and only 6 lakh companies file their annual tax returns, according to the government. This means a large number companies may be indulging in financial irregularities. &nbsp; &nbsp;

In the initial analysis it has been found that &lsquo;shell companies&rsquo; are characterized by nominal paid-up capital, high reserves &amp; surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income, high cash in hand, also private companies as majority shareholders, low turnover &amp; operating income, nominal expenses, nominal statutory payments &amp; stock in trade including minimum fixed asset.

In a small sample analysis of such companies it has been found that Rs.1,238 crore cash has been deposited in these entities during November-December period.&nbsp;

Serious Fraud Investigation Office (SFIO) has filed criminal prosecution for cheating the national exchequer after investigation of entry operators running a group of 49 shell companies and other proprietorship concerns.&nbsp;

It has been found that 559 beneficiaries have laundered money to the extent of Rs.39,00 crore with the help of 54 professionals who have been identified. This information has been shared with SIT, Income Tax Department, Enforcement Directorate, SEBI and The Institute of Chartered Accountants of India (ICAI).&nbsp;

Income Tax Department has re-opened completed assessment in these cases and Enforcement Directorate has initiated action under Prevention of Money Laundering Act (PMLA), 2002. ICAI has also initiated disciplinary proceedings against its members. The winding up process has been initiated in respect of 49 shell companies.

In order to create a credible deterrence a &ldquo;whole government approach&rdquo; will be adopted through coordinated efforts and by leveraging technology.&nbsp;

It has also been decided that appropriate red flag indicators would be used for identifying shell companies, and a database of such companies and their directors would be built by pulling in information from various agencies. The database will also capture Aadhar number of individual directors in the companies.

Harsh punitive actions will be taken against the deviant shell companies which will include freezing of bank accounts, striking off the names of dormant companies and invocation of Benami Transactions (Prohibition) Amendment Act, 2016.

A task force with members from various regulatory ministries and enforcement agencies has been set up under the co-chairmanship of the revenue secretary and corporate affairs secretary to monitor the actions taken against deviant shell companies by various agencies. &nbsp;&nbsp;

The concerned regulatory ministry will ensure that disciplinary actions are initiated against the professionals indulging in malpractices and abetting the entry operators of the shell companies.

(WION)

The government has decided to take harsh action against shell companies which includes freezing bank accounts of these companies

A meeting was held in the Prime Ministers Office which included senior officers of various departments to review the functioning of ‘shell companies’ (companies which do not conduct any operations and indulge in money laundering) in India, in order to prevent money laundering and tax evasion, especially in the context of unearthing black money post-demonetisation. There are about 15 lakh registered companies in India and only 6 lakh companies file their annual tax returns, according to the government. This means a large number companies may be indulging in financial irregularities. In the initial analysis it has been found that ‘shell companies’ are characterized by nominal paid-up capital, high reserves & surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income, high cash in hand, also private companies as majority shareholders, low turnover & operating income, nominal expenses, nominal statutory payments & stock in trade including minimum fixed asset. In a small sample analysis of such companies it has been found that Rs.1,238 crore cash has been deposited in these entities during November-December period. Serious Fraud Investigation Office (SFIO) has filed criminal prosecution for cheating the national exchequer after investigation of entry operators running a group of 49 shell companies and other proprietorship concerns. It has been found that 559 beneficiaries have laundered money to the extent of Rs.39,00 crore with the help of 54 professionals who have been identified. This information has been shared with SIT, Income Tax Department, Enforcement Directorate, SEBI and The Institute of Chartered Accountants of India (ICAI). Income Tax Department has re-opened completed assessment in these cases and Enforcement Directorate has initiated action under Prevention of Money Laundering Act (PMLA), 2002. ICAI has also initiated disciplinary proceedings against its members. The winding up process has been initiated in respect of 49 shell companies. In order to create a credible deterrence a “whole government approach” will be adopted through coordinated efforts and by leveraging technology. It has also been decided that appropriate red flag indicators would be used for identifying shell companies, and a database of such companies and their directors would be built by pulling in information from various agencies. The database will also capture Aadhar number of individual directors in the companies. Harsh punitive actions will be taken against the deviant shell companies which will include freezing of bank accounts, striking off the names of dormant companies and invocation of Benami Transactions (Prohibition) Amendment Act, 2016. A task force with members from various regulatory ministries and enforcement agencies has been set up under the co-chairmanship of the revenue secretary and corporate affairs secretary to monitor the actions taken against deviant shell companies by various agencies. The concerned regulatory ministry will ensure that disciplinary actions are initiated against the professionals indulging in malpractices and abetting the entry operators of the shell companies. (WION)

'Shell companies' under lens post-demonetisation

As his helicopter swooped down for a rally the crowds cheered and waved at the leader of India&#39;s most populous state, where millions will vote on Saturday in a key test of Prime Minister Narendra Modi&#39;s popularity.

The northern state of Uttar Pradesh is home to over 200 million people -- more than the entire population of Brazil -- and polls there are seen as a bellwether of national politics.

Voting in the vast state, which sends the largest share of MPs to both houses of parliament in Delhi, will be staggered over several weeks with results out on March 11.

With so much at stake, Modi has personally led the campaigning for his right-wing Bharatiya Janata Party (BJP), which won big in the 2014 general election.

The vote is seen as a key test of his popularity after a controversial ban on high-value notes that was aimed at combating tax evasion by the rich&nbsp;but has also hit poor rural communities in UP hard.

He faces strong competition from the state&#39;s youthful and popular current Chief Minister Akhilesh Yadav, campaigning in a tie-up with the BJP&#39;s ailing national rivals the Congress Party.

Political analyst RP Mamgain told AFP the elections were a &quot;litmus test&quot; for the BJP after nearly three years in power.

&quot;People are really looking forward to see what all they have managed to do, and their assessment will be reflected in the UP election,&quot; said Mamgain, professor at the Giri Institute of Development Studies in state capital Lucknow.

&quot;It is a kind of a litmus test for them, on whether they delivered on jobs, urban and rural development.&quot;

It also offers a chance for the BJP to gain more seats in the upper house, which has blocked some of its planned reforms.

&#39;Huge loss&#39;

Yadav denounced the cash ban at a series of rallies this week attended by well-wishers -- some perched on trees to get a glimpse of the leader.&nbsp;

&quot;Demonetisation didn&#39;t help anyone,&quot; the 43-year-old told AFP.&nbsp;

&quot;This step has been a huge loss for the country whose consequences can&#39;t be seen at the moment.

&quot;But it will become apparent in days to come because our economy, our labour, our manufacturing have been hit badly.&quot;

The government has conceded that the drive will hit national growth&nbsp;but says it will ultimately benefit the economy by bringing hidden wealth back into the system.

Analysts said it was unlikely to dent the BJP&#39;s election prospects because bank lines have eased. Anecdotal evidence suggests the policy may actually have boosted Modi&#39;s popularity in poor communities because it is viewed as hitting the rich. &nbsp;

&quot;People by-and-large have appreciated Modi&#39;s intentions. Demonetisation has lost its sting, it&#39;s become a non-issue now,&quot; Anil Verma, director of the Uttar Pradesh-based Centre for the Study of Society and Politics, told AFP. &nbsp;

Pollsters are divided on who will win, with some forecasting a hung assembly. Low-caste leader Mayawati&#39;s Bahujan Samaj Party is expected to take third place, sweeping much of the Dalit vote.

Yadav, who became India&#39;s youngest chief minister in 2012, is hoping to win the support of Uttar Pradesh&#39;s youth after wresting control of the Samajwadi Party from his ageing father in a bitter months-long battle.

He has campaigned with the Congress second-in-command Rahul Gandhi, 46, with both leaders projecting themselves as modern agents of change in a state where religion and caste have generally dominated campaigns.

&quot;When a young person sees that there is young leadership, somewhere or the other he will feel that this leadership will understand his particular problems like wages and jobs and will help him fulfil his dreams and ambitions,&quot; said Akhilesh.

Analysts say Gandhi, likely to be the next Congress leader, desperately needs a win to boost his lacklustre reputation after defeat at the 2014 polls.

&quot;Congress is almost a dead party,&quot; Mamgain told AFP. &quot;On its own, Congress is not even considered as a real alternative.&quot;

(AFP)

Voting in Uttar Pradesh is a key test of Modi's popularity after his demonetisation move which hit poor rural community of UP very badly

As his helicopter swooped down for a rally the crowds cheered and waved at the leader of India's most populous state, where millions will vote on Saturday in a key test of Prime Minister Narendra Modi's popularity. The northern state of Uttar Pradesh is home to over 200 million people -- more than the entire population of Brazil -- and polls there are seen as a bellwether of national politics. Voting in the vast state, which sends the largest share of MPs to both houses of parliament in Delhi, will be staggered over several weeks with results out on March 11. With so much at stake, Modi has personally led the campaigning for his right-wing Bharatiya Janata Party (BJP), which won big in the 2014 general election. The vote is seen as a key test of his popularity after a controversial ban on high-value notes that was aimed at combating tax evasion by the rich but has also hit poor rural communities in UP hard. He faces strong competition from the state's youthful and popular current Chief Minister Akhilesh Yadav, campaigning in a tie-up with the BJP's ailing national rivals the Congress Party. Political analyst RP Mamgain told AFP the elections were a "litmus test" for the BJP after nearly three years in power. "People are really looking forward to see what all they have managed to do, and their assessment will be reflected in the UP election," said Mamgain, professor at the Giri Institute of Development Studies in state capital Lucknow. "It is a kind of a litmus test for them, on whether they delivered on jobs, urban and rural development." It also offers a chance for the BJP to gain more seats in the upper house, which has blocked some of its planned reforms. 'Huge loss' Yadav denounced the cash ban at a series of rallies this week attended by well-wishers -- some perched on trees to get a glimpse of the leader. "Demonetisation didn't help anyone," the 43-year-old told AFP. "This step has been a huge loss for the country whose consequences can't be seen at the moment. "But it will become apparent in days to come because our economy, our labour, our manufacturing have been hit badly." The government has conceded that the drive will hit national growth but says it will ultimately benefit the economy by bringing hidden wealth back into the system. Analysts said it was unlikely to dent the BJP's election prospects because bank lines have eased. Anecdotal evidence suggests the policy may actually have boosted Modi's popularity in poor communities because it is viewed as hitting the rich. "People by-and-large have appreciated Modi's intentions. Demonetisation has lost its sting, it's become a non-issue now," Anil Verma, director of the Uttar Pradesh-based Centre for the Study of Society and Politics, told AFP. Pollsters are divided on who will win, with some forecasting a hung assembly. Low-caste leader Mayawati's Bahujan Samaj Party is expected to take third place, sweeping much of the Dalit vote. Yadav, who became India's youngest chief minister in 2012, is hoping to win the support of Uttar Pradesh's youth after wresting control of the Samajwadi Party from his ageing father in a bitter months-long battle. He has campaigned with the Congress second-in-command Rahul Gandhi, 46, with both leaders projecting themselves as modern agents of change in a state where religion and caste have generally dominated campaigns. "When a young person sees that there is young leadership, somewhere or the other he will feel that this leadership will understand his particular problems like wages and jobs and will help him fulfil his dreams and ambitions," said Akhilesh. Analysts say Gandhi, likely to be the next Congress leader, desperately needs a win to boost his lacklustre reputation after defeat at the 2014 polls. "Congress is almost a dead party," Mamgain told AFP. "On its own, Congress is not even considered as a real alternative." (AFP)

India state elections: Dry run for Modi as India's most populous state votes

Indian Prime Minister Narendra Modi on Saturday launched a scathing attack on Opposition parties in the state of Uttar Pradesh saying that even if he wants development in UP, there are governments here that will create obstacles.

Addressing his first rally in Meerut ahead of the first phase of the UP assembly polls, Modi said, &quot;What is the state of Meerut? Is there a guarantee that a common man will return home alive every evening? Even if I want development in UP, there are governments here that will create obstacles.&quot;

Questioning why the youth of UP did not have employment opportunities even after so much potential, Modi said his party&#39;s fight was against SCAM. &quot;Out fight is against SCAM - Samajwadi, Congress, Akhilesh and Mayawati. Do you want SCAM or BJP? Do you want SCAM or UP&#39;s development?&quot; he asked.

Modi also said that if they have a state government that creates obstacles then the development works will get stalled in Lucknow. &quot;Nothing will reach people,&quot; he said.

Further claiming that there is no legal action taken on the culprits behind killings in UP, he added, &quot;Why are innocent citizens being killed? Why are innocent traders being killed? There is no fear of the law among the killers.&quot;

The Prime Minister also attacked the Congress saying, &quot;Those who have been rejected by the people, how can they talk about saving the state?&quot;

&quot;We are willing to do everything for the growth of UP. To change the fortunes of UP, change the government in the state,&quot; he appealed to voters.

(This first appeared in DNA)

Modi says fight is against 'SCAM?Samajwadi Party, Congress, Akhilesh Yadav and Mayawati'

Indian Prime Minister Narendra Modi on Saturday launched a scathing attack on Opposition parties in the state of Uttar Pradesh saying that even if he wants development in UP, there are governments here that will create obstacles. Addressing his first rally in Meerut ahead of the first phase of the UP assembly polls, Modi said, "What is the state of Meerut? Is there a guarantee that a common man will return home alive every evening? Even if I want development in UP, there are governments here that will create obstacles." Questioning why the youth of UP did not have employment opportunities even after so much potential, Modi said his party's fight was against SCAM. "Out fight is against SCAM - Samajwadi, Congress, Akhilesh and Mayawati. Do you want SCAM or BJP? Do you want SCAM or UP's development?" he asked. Modi also said that if they have a state government that creates obstacles then the development works will get stalled in Lucknow. "Nothing will reach people," he said. Further claiming that there is no legal action taken on the culprits behind killings in UP, he added, "Why are innocent citizens being killed? Why are innocent traders being killed? There is no fear of the law among the killers." The Prime Minister also attacked the Congress saying, "Those who have been rejected by the people, how can they talk about saving the state?" "We are willing to do everything for the growth of UP. To change the fortunes of UP, change the government in the state," he appealed to voters. (This first appeared in DNA)

India: PM Modi addresses rally in Meerut ahead of Uttar Pradesh polls

United States President Donald Trump will speak to Indian Prime Minister Narendra Modi over the phone late on Tuesday.

The White House released Trump&#39;s schedule for Tuesday and said, &quot;President speaks with Indian Prime Minister at 1:00&nbsp;pm Washington time.&quot;

The scheduled time for the talks between the two leaders according to Indian standard time is 11:30 pm.

Prime Minister Modi would be the fifth foreign leader to hold talks with Trump after he was sworn in as the 45th US President on Friday.

Trump will afterwards meet the CIA director Mike Pompeo at 1:30 pm and with key Senate leaders at 3:00 pm.&nbsp;

(ANI)&nbsp;

Modi would be the fifth foreign leader to hold talks with Trump after he was sworn in as the 45th US President on Friday

United States President Donald Trump will speak to Indian Prime Minister Narendra Modi over the phone late on Tuesday. The White House released Trump's schedule for Tuesday and said, "President speaks with Indian Prime Minister at 1:00 pm Washington time." The scheduled time for the talks between the two leaders according to Indian standard time is 11:30 pm. Prime Minister Modi would be the fifth foreign leader to hold talks with Trump after he was sworn in as the 45th US President on Friday. Trump will afterwards meet the CIA director Mike Pompeo at 1:30 pm and with key Senate leaders at 3:00 pm. (ANI)

Trump to hold talks with PM Modi over phone tonight

Outgoing US President Barack Obama telephoned Indian&nbsp;Prime Minister Narendra Modi to thank him for his partnership that enhanced the relations between India and America, the White House has said. The two leaders reviewed progress and cooperation in Indo-US ties.

PM Modi thanked President Obama for strong support and contribution to strengthening strategic partnership and conveyed best wishes to him for his future endeavours.

Obama spoke on the phone with Modi on Wednesday to thank him for &quot;his partnership&quot; and to review joint efforts of cooperation including defence, civil-nuclear energy, and enhanced people-to-people ties, a readout of the telephonic conversation between the two leaders said.

&quot;Recalling his visit as the chief guest at India&#39;s Republic Day celebrations in 2015, President Obama wished the Prime Minister warm congratulations ahead of India&#39;s upcoming 68th Republic Day anniversary,&quot; the White House said. &quot;Both leaders discussed the progress they have made on shared economic and security priorities, including recognition of India as a major defense partner of the United States and addressing the global challenge of climate change,&quot; it said.

Obama was one of the first leaders to congratulate Modi after his electoral victory in May 2014 and immediately invited him to visit the White House. The two leaders met at the White House in September 2014. Since then they have met each other for eight times. This is a record for leaders between India and America.

According to assistant secretary of state for South and central Asia Nisha Desai Biswal, the two leaders share a very warm relationship. &quot;They have a great deal of personal camaraderie. But they also have a great deal of respect for each other for the leadership and the values and the integrity of each other&#39;s approach,&quot; Biswal told PTI in a recent interview. &quot;You have seen from President Obama that appreciation of Prime Minister Modi in words that he has used to describe him including in that Time magazine profile of the Prime Minister.

You have seen that Prime Minister Modi&#39;s appreciation of President Obama, of his values, his leadership style which the Prime Minister has used to describe the President,&quot; she said.

She said that it is not a relationship that just came about that day when President called Prime Minister-elect Modi to congratulate him. &quot;The seeds of this relationship were actually sown many many decades earlier,&quot; Biswal had said.

&nbsp;

(PTI)

Obama spoke on the phone with Modi on Wednesday amd also?reviewed joint efforts of cooperation including defence

Outgoing US President Barack Obama telephoned Indian Prime Minister Narendra Modi to thank him for his partnership that enhanced the relations between India and America, the White House has said. The two leaders reviewed progress and cooperation in Indo-US ties. PM Modi thanked President Obama for strong support and contribution to strengthening strategic partnership and conveyed best wishes to him for his future endeavours. Obama spoke on the phone with Modi on Wednesday to thank him for "his partnership" and to review joint efforts of cooperation including defence, civil-nuclear energy, and enhanced people-to-people ties, a readout of the telephonic conversation between the two leaders said. "Recalling his visit as the chief guest at India's Republic Day celebrations in 2015, President Obama wished the Prime Minister warm congratulations ahead of India's upcoming 68th Republic Day anniversary," the White House said. "Both leaders discussed the progress they have made on shared economic and security priorities, including recognition of India as a major defense partner of the United States and addressing the global challenge of climate change," it said. Obama was one of the first leaders to congratulate Modi after his electoral victory in May 2014 and immediately invited him to visit the White House. The two leaders met at the White House in September 2014. Since then they have met each other for eight times. This is a record for leaders between India and America. According to assistant secretary of state for South and central Asia Nisha Desai Biswal, the two leaders share a very warm relationship. "They have a great deal of personal camaraderie. But they also have a great deal of respect for each other for the leadership and the values and the integrity of each other's approach," Biswal told PTI in a recent interview. "You have seen from President Obama that appreciation of Prime Minister Modi in words that he has used to describe him including in that Time magazine profile of the Prime Minister. You have seen that Prime Minister Modi's appreciation of President Obama, of his values, his leadership style which the Prime Minister has used to describe the President," she said. She said that it is not a relationship that just came about that day when President called Prime Minister-elect Modi to congratulate him. "The seeds of this relationship were actually sown many many decades earlier," Biswal had said. (PTI)

Outgoing US President Obama calls Indian PM Modi to thank him for his partnership

India&#39;s Supreme Court Wednesday dismissed the &#39;Sahara diaries&#39;&nbsp;case, saying there is not enough evidence to probe politicians accused of receiving kickbacks from large conglomerates.

The &#39;Sahara diaries&#39; -- a document impounded by taxmen during raids on Sahara and Birla offices in 2013 and 2014 -- had evidence of several big-name politicians, including the incumbent Prime Minister Narendra Modi and former Delhi chief minister Sheila Dikshit, of receiving bribes from the two conglomerates.

But the country&#39;s highest court said that &quot;given the shape in which these documents have been collected and filed, we are of the opinion that it would not be safe and proper to order investigations&quot;.

The court also said it set a dangerous precedent if they ordered an investigation based on such papers. &quot;If investigation is ordered on the basis of inadmissible evidence like this, constitutional functionaries can&#39;t function and democracy will not be safe.&quot;

Common Cause, an NGO, had filed a petition with the court, seeking an investigation against Narendra Modi and other politicians who were named in the seized documents.

The top court had similarly quashed an earlier plea in November, saying that the Sahara-Birla papers had &quot;zero material&quot; and was only an &quot;insinuation&quot;.

&ldquo;So far as this material is concerned, it does not arouse suspicion. We are not satisfied at all. These are high public functionaries. If you are bringing this material before us, it is nothing. It is a serious issue. You must give us something on which we can determine,&rdquo; the bench had said.

Common Cause filed a fresh petition last week, appending some e-mails to its affidavit.

There were entries in Sahara diaries which suggested that Narendra Modi, who was then the chief minister of India&#39;s western state of Gujarat, had received nine transactions totalling Rs 40.1 crore ($5.8 million) from Sahara.

(WION)

&nbsp;

&nbsp;

The Sahara papers purportedly showed that the then Gujarat CM Narendra Modi received roughly $5.8 million from Indian conglomerate Sahara

India's Supreme Court Wednesday dismissed the 'Sahara diaries' case, saying there is not enough evidence to probe politicians accused of receiving kickbacks from large conglomerates. The 'Sahara diaries' -- a document impounded by taxmen during raids on Sahara and Birla offices in 2013 and 2014 -- had evidence of several big-name politicians, including the incumbent Prime Minister Narendra Modi and former Delhi chief minister Sheila Dikshit, of receiving bribes from the two conglomerates. But the country's highest court said that "given the shape in which these documents have been collected and filed, we are of the opinion that it would not be safe and proper to order investigations". The court also said it set a dangerous precedent if they ordered an investigation based on such papers. "If investigation is ordered on the basis of inadmissible evidence like this, constitutional functionaries can't function and democracy will not be safe." Common Cause, an NGO, had filed a petition with the court, seeking an investigation against Narendra Modi and other politicians who were named in the seized documents. The top court had similarly quashed an earlier plea in November, saying that the Sahara-Birla papers had "zero material" and was only an "insinuation". “So far as this material is concerned, it does not arouse suspicion. We are not satisfied at all. These are high public functionaries. If you are bringing this material before us, it is nothing. It is a serious issue. You must give us something on which we can determine,” the bench had said. Common Cause filed a fresh petition last week, appending some e-mails to its affidavit. There were entries in Sahara diaries which suggested that Narendra Modi, who was then the chief minister of India's western state of Gujarat, had received nine transactions totalling Rs 40.1 crore ($5.8 million) from Sahara. (WION)

India's top court junks 'Sahara diaries' case accusing Modi of graft

The Public Accounts Committee (PAC) of Parliament can call Prime Minister Narendra Modi on the issue of demonetisation if it is not satisfied with the answers given by top finance ministry officials and the RBI Governor Urjit Patel, to whom a detailed questionnaire has been sent.

A PAC meeting on this issue has been called on January 20th, in which the Reserve Bank of Indian (RBI) Governor Urjit Patel, Finance Secretary Ashok Lavasa and Economic Affairs Secretary Shaktikanta Das will be present.

&quot;We have not yet received answers for the questions we have sent to them. They will reply few days before the January 20th meeting. Their replies will be discussed in detail,&quot; PAC Chairman and senior Congress leader K V Thomas told PTI.

Asked if the PAC would call the Prime Minister if replies were not satisfactory, he said: &quot;The committee has all right to 
call anybody involved in the matter. But that will depend on the outcome of the January 20th meeting. We can call PM on demonetisation issue if members unanimously decide.&quot;

In a meeting with the PM after demonetisation announcement made on November 8, Thomas said, &quot;I had met him and he said that the situation will be normal after 50 days by December-end. But it does not looks like&quot;.

So, PAC decided to call the top officials involved in the decision making process this month, he said, adding that the demonetisation has impacted the country&#39;s economy.

&quot;The PM is misleading the country to satisfy his ego. He is trying to justify his wrong decisions. He has done in a callous manner by introducing Rs 2,000 notes,&quot; he said.

&quot;In a country where there is a call drop problem and telecom facilities are not smooth, how can PM expect e-transactions would take place on mobiles. Do we have sufficient infrastructure?&quot; he questioned.

Asked what kind of questionnaire been sent to the RBI chief and top finance ministry officials, Thomas said that the PAC has raised questions on all aspects of demonetisation.

Among key questions sought are:&nbsp;Who were involved in the decision-making, how much money has come back into banks after demonetisation, is there a law that can restrict people&#39;s access their money, how much money has been pumped back into the system, if black money issue has been addressed and the impact on the economy and poor.

The PAC, which scrutinises the reports of the Comptroller and Auditor General (CAG), takes suo motu note of the important matters.

(PTI)

If unsatisfied with answers given by RBI Governor Urjit Patel to a detailed questionnaire on demonetisation, Modi himself will be called on

The Public Accounts Committee (PAC) of Parliament can call Prime Minister Narendra Modi on the issue of demonetisation if it is not satisfied with the answers given by top finance ministry officials and the RBI Governor Urjit Patel, to whom a detailed questionnaire has been sent. A PAC meeting on this issue has been called on January 20th, in which the Reserve Bank of Indian (RBI) Governor Urjit Patel, Finance Secretary Ashok Lavasa and Economic Affairs Secretary Shaktikanta Das will be present. "We have not yet received answers for the questions we have sent to them. They will reply few days before the January 20th meeting. Their replies will be discussed in detail," PAC Chairman and senior Congress leader K V Thomas told PTI. Asked if the PAC would call the Prime Minister if replies were not satisfactory, he said: "The committee has all right to call anybody involved in the matter. But that will depend on the outcome of the January 20th meeting. We can call PM on demonetisation issue if members unanimously decide." In a meeting with the PM after demonetisation announcement made on November 8, Thomas said, "I had met him and he said that the situation will be normal after 50 days by December-end. But it does not looks like". So, PAC decided to call the top officials involved in the decision making process this month, he said, adding that the demonetisation has impacted the country's economy. "The PM is misleading the country to satisfy his ego. He is trying to justify his wrong decisions. He has done in a callous manner by introducing Rs 2,000 notes," he said. "In a country where there is a call drop problem and telecom facilities are not smooth, how can PM expect e-transactions would take place on mobiles. Do we have sufficient infrastructure?" he questioned. Asked what kind of questionnaire been sent to the RBI chief and top finance ministry officials, Thomas said that the PAC has raised questions on all aspects of demonetisation. Among key questions sought are: Who were involved in the decision-making, how much money has come back into banks after demonetisation, is there a law that can restrict people's access their money, how much money has been pumped back into the system, if black money issue has been addressed and the impact on the economy and poor. The PAC, which scrutinises the reports of the Comptroller and Auditor General (CAG), takes suo motu note of the important matters. (PTI)

Demonetisation: Parliamentary committee may summon Indian PM Narendra Modi

Amid a chill in India-Pakistan ties, Pakistan Prime Minister Nawaz Sharif today called a high-level meeting and reviewed the current status of the country&#39;s ties with its neighbours and strategic partners, according to an official statement.

Sharif said Pakistan believes in peaceful co-existence with all countries of the region and looks forward to establish with them strong and mutually beneficial relations.

&quot;Peaceful coexistence, mutual respect and economically integrated region must be our shared objective and we must strive for realising this objective. This could be possible only when we demonstrate a commitment to our aspirations of peace, progress and prosperity,&quot; Sharif said during the meeting.

His remarks come amid severe low&nbsp;in Indo-Pak ties after Pakistan-based terrorists attacked an Indian army base in Uri in September. 
Sharif added that China-Pakistan Economic Corridor&nbsp;was a &quot;cornerstone of our own quest for regional connectivity and shared prosperity&quot;.

The meeting evaluated various policy options in response to different challenges in regard to foreign relations. It focused on issues pertaining to regional, external and internal security situation.

It also reviewed bilateral and multi-lateral relations with neighbouring countries, future roadmap for regional stability and maintenance of mutually beneficial relations with all countries in the region and beyond.

Finance Minister Ishaq Dar, Interior Minister Nisar Ali Khan, army chief General Qamar Javed Bajwa, ISI chief Lt. Gen&nbsp;Naveed Mukhtar, Advisor on Foreign Affairs Sartaj Aziz, Special Assistant to PM Tariq Fatemi, National Security Advisor Lt&nbsp;Gen&nbsp;(R) Nasser Khan Janjua and other senior officials attended the meeting.

(PTI)

'Peaceful coexistence, mutual respect and economically integrated region must be our shared objective...' said the Pakistani prime minister

Amid a chill in India-Pakistan ties, Pakistan Prime Minister Nawaz Sharif today called a high-level meeting and reviewed the current status of the country's ties with its neighbours and strategic partners, according to an official statement. Sharif said Pakistan believes in peaceful co-existence with all countries of the region and looks forward to establish with them strong and mutually beneficial relations. "Peaceful coexistence, mutual respect and economically integrated region must be our shared objective and we must strive for realising this objective. This could be possible only when we demonstrate a commitment to our aspirations of peace, progress and prosperity," Sharif said during the meeting. His remarks come amid severe low in Indo-Pak ties after Pakistan-based terrorists attacked an Indian army base in Uri in September. Sharif added that China-Pakistan Economic Corridor was a "cornerstone of our own quest for regional connectivity and shared prosperity". The meeting evaluated various policy options in response to different challenges in regard to foreign relations. It focused on issues pertaining to regional, external and internal security situation. It also reviewed bilateral and multi-lateral relations with neighbouring countries, future roadmap for regional stability and maintenance of mutually beneficial relations with all countries in the region and beyond. Finance Minister Ishaq Dar, Interior Minister Nisar Ali Khan, army chief General Qamar Javed Bajwa, ISI chief Lt. Gen Naveed Mukhtar, Advisor on Foreign Affairs Sartaj Aziz, Special Assistant to PM Tariq Fatemi, National Security Advisor Lt Gen (R) Nasser Khan Janjua and other senior officials attended the meeting. (PTI)

Pakistan seeks peaceful ties with neighbours: Sharif

By&nbsp;Manju AB

Equated monthly installments (EMIs) on home, car, and education loans will fall by at least half a per cent with banks across the board reducing their lending rates.

On Sunday, India&#39;s largest lender, State Bank of India (SBI), fired the first salvo by reducing its marginal cost-based lending rate (MCLR) by a whopping 0.9 per cent. With this, the bank has cut its benchmark rate by nearly 200 basis points from January 2015. Each basis point is equivalent to one-hundredth of a percentage.

As the deluge of deposits post demonetisation brought down funding costs for the bank and the government wanted to spread some New Year cheer (again post demonetisation), the cost of loans across the board have been made cheaper. The one-year MCLR of SBI, to which most of its loans are linked, is down to 8 per cent from an earlier 8.9 per cent. The reduction of 0.9 per cent is across all maturities.

The SBI action was followed within hours by peers. Punjab National Bank (PNB) has cut its one-year MCLR rate by 0.7 per cent to 8.45 per cent from 9.15 per cent, effective January 1. Similarly, Union Bank of India has reduced its one-year MCLR by 0.65 per cent to 8.65 per cent, effective January 2.

Rajnish Kumar, Managing Director in charge of retail loans, SBI, told DNA: &quot;The reduction will result in all loan rates to come down. For home loans, the reduction will be up to 0.75 per cent, depending on the tenure and the maturity. The quantum of reduction for car loans is being decided. There also we will give a good relief for customers. For a Rs 30 lakh loan for 30 years, the monthly EMI will come down by Rs 1,200.&quot;

The overnight MCLR is down to 7.75 per cent from 8.65 per cen, the one-month MCLR is down to 7.85 per cent from 8.75 per cent, the three-moth MCLR is down to 7.90 per cent from 8.80 per cent, the six-month MCLR is down to 7.95 per cent from 8.85 per cent, and the 2-year MCLR is down to 8.10 per cent from 9 per cent.

The banks cutting their lending rates supplements the sops Prime Minister Narendra Modi promised the housing sector, small and medium enterprises and farmers.

Banking sources say it is only a matter of time before the private sector banks -- ICICI and HDFC -- match the cuts.

Loan rates have no option but to fall, irrespective of what action the Reserve Bank of India (RBI) takes. If you take the latest bank credit and deposit growth rates put out by the central bank, it shows that while bank credit growth is steadily shrinking to 4 per cent, deposit growth, especially savings accounts, have swelled by 15.9 per cent. The wide gap shows the banking system is flush with cash and that lending costs would correspondingly fall.

Last week, the largest private sector lender, ICICI Bank, prepared itself for a lending rate cut by cutting its deposit rates to 7.5 per cent for a 390-day fixed deposit and 7 per cent for senior citizens, reducing rates by 0.10 per cent to 0.25 per cent on various maturities.

RBI introduced the MCLR system in April this year with the objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates. The rates are revised every month.

(This report first appeared in DNA)

&nbsp;

With banks cutting their lending rates, It is hoped the reductions will kick-start a stuttering economy

By Manju AB Equated monthly installments (EMIs) on home, car, and education loans will fall by at least half a per cent with banks across the board reducing their lending rates. On Sunday, India's largest lender, State Bank of India (SBI), fired the first salvo by reducing its marginal cost-based lending rate (MCLR) by a whopping 0.9 per cent. With this, the bank has cut its benchmark rate by nearly 200 basis points from January 2015. Each basis point is equivalent to one-hundredth of a percentage. As the deluge of deposits post demonetisation brought down funding costs for the bank and the government wanted to spread some New Year cheer (again post demonetisation), the cost of loans across the board have been made cheaper. The one-year MCLR of SBI, to which most of its loans are linked, is down to 8 per cent from an earlier 8.9 per cent. The reduction of 0.9 per cent is across all maturities. The SBI action was followed within hours by peers. Punjab National Bank (PNB) has cut its one-year MCLR rate by 0.7 per cent to 8.45 per cent from 9.15 per cent, effective January 1. Similarly, Union Bank of India has reduced its one-year MCLR by 0.65 per cent to 8.65 per cent, effective January 2. Rajnish Kumar, Managing Director in charge of retail loans, SBI, told DNA: "The reduction will result in all loan rates to come down. For home loans, the reduction will be up to 0.75 per cent, depending on the tenure and the maturity. The quantum of reduction for car loans is being decided. There also we will give a good relief for customers. For a Rs 30 lakh loan for 30 years, the monthly EMI will come down by Rs 1,200." The overnight MCLR is down to 7.75 per cent from 8.65 per cen, the one-month MCLR is down to 7.85 per cent from 8.75 per cent, the three-moth MCLR is down to 7.90 per cent from 8.80 per cent, the six-month MCLR is down to 7.95 per cent from 8.85 per cent, and the 2-year MCLR is down to 8.10 per cent from 9 per cent. The banks cutting their lending rates supplements the sops Prime Minister Narendra Modi promised the housing sector, small and medium enterprises and farmers. Banking sources say it is only a matter of time before the private sector banks -- ICICI and HDFC -- match the cuts. Loan rates have no option but to fall, irrespective of what action the Reserve Bank of India (RBI) takes. If you take the latest bank credit and deposit growth rates put out by the central bank, it shows that while bank credit growth is steadily shrinking to 4 per cent, deposit growth, especially savings accounts, have swelled by 15.9 per cent. The wide gap shows the banking system is flush with cash and that lending costs would correspondingly fall. Last week, the largest private sector lender, ICICI Bank, prepared itself for a lending rate cut by cutting its deposit rates to 7.5 per cent for a 390-day fixed deposit and 7 per cent for senior citizens, reducing rates by 0.10 per cent to 0.25 per cent on various maturities. RBI introduced the MCLR system in April this year with the objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates. The rates are revised every month. (This report first appeared in DNA)

EMIs on home, car, education loans to fall by at least half a per cent

India&#39;s Prime Minister Narendra Modi has announced a raft of measures for the lower income group, senior citizens and pregnant women.

New housing schemes targeting the poor and lower middle class and&nbsp;new initiatives to encourage the farming sector and&nbsp;micro, small and medium enterprises in the country were also a part of the prime minister&#39;s New Year sops. 
 
&quot;The Prime Minister has congratulated people on having ensured that the world&#39;s largest drive against corruption and black money is a huge success. A series of welfare measures for women, senior citizens, farmers and middle classes are his way of thanking the people for their unstinted support,&quot; BJP spokesperson G V L Narsimha Rao said.

The prime minister&nbsp;also assuaged the honest people that the government will act as a friend to them so that their difficulties are eased. 
 
Among the sops announced in his address to the nation at the end of 50-day demonetisation period, Modi said senior citizens will get 8 per cent interest on deposits of upto Rs 7.5 lakh for 10 years and deposit of Rs 6000 into accounts of pregnant and lactating women in rural areas to meet medical expenses. 
 
For farmers, he announced that banks will not charge interest for 60 days on loans taken from district cooperative central bank and primary societies for rabi crop. 
 
For construction or expansion of a rural house, 3 per cent interest will be waived on loan of upto Rs 2 lakh. 
 
Announcing two new schemes under Pradhan Mantri Awas Yojana, he said 4 per cent interest subvention on loans upto Rs 9 lakh and 3 per cent on loan upto Rs 12 lakh. 
 
&quot;The law will take its course with full force. The government will help the honest and protect them and see their difficulties are eased. How honest will gain from the government. This government is a friend of good people and wants to build on the good environment for the people to return to goodness,&quot; he said. 
 
Acknowledging that &quot;serious offences&quot; have been committed by some bank and government officials taking advantage of situation, he said &quot;they will not be spared&quot;.

Here are the key points from PM Modi&#39;s speech:

8.12pm: The prime minister also took a swipe at his critics, saying that the farming sector has not been hit hard by demonetisation. He said fertiliser sales are up by 9 per cent and rabi sowing has seen a 6 per cent increase

8.10pm: Modi has doubled the credit guarantee for MSMEs from Rs 1 crore to Rs 2 crore. That means micro, small and medium enterprises can take loan up to Rs 2 crore without any collateral

8.08pm: People prefer digital transactions. Also reiterates the BHIM app that was launched on December 30. The app will assist the poor in making digital transactions

8.05pm: Cash credit limit to be increased from 20 to 25 per cent on turnover of small enterprises

8.03pm: Modi also announces sops for pregnant women and senior citizens. For senior citizens, fixed deposit up to Rs 7.5 lakh will remain at 8 per cent for the next ten years. He has also promised Rs 6,000 cash assistance to pregnant women. The money will be transferred to their accounts directly. Earlier, pregnant women in 53 districts were given financial assistance of Rs 4,000 as part of pilot project

7.58: Three crore kisan (farmer)&nbsp;cards will be converted into Rupay cards in the next three months

7.56pm: Modi offers a raft of sops for the lower income group to purchase property

7.54pm: The poor and the lower income group can avail up to&nbsp;Rs 9 lakh loan will get 4 per cent exemption on interest. Those who look to avail Rs 12 lakh will get 3 per cent&nbsp;interest rebate

7.53pm: Modi announces two housing schemes for the poor people

7.51pm: Twenty four lakh people have declared their income to be above Rs 10 lakh per annum, says the Prime MInister

7.49pm: Modi also lauds the efforts put in by the banks and post offices across the country, but also chastises some bank officials of trying to help the corrupt skirt the demonetisation policy. Promises to act tough on them

7.47pm: The Naxals, arm dealers were all dealing in black money. But demonetisation has curbed&nbsp;their activities: Modi

7.46pm: The Indian premier promises to crack down on those found guilty of perpetrating the show economy

7.44pm: Plan to scrap cash was to corner the corrupt. Wanted to bolster the honest of the country. Wanted to ease the pain of the common man: PM

7.40pm: It was important to battle the scourge of&nbsp;black money. The rich were amassing money while the poor continued struggling: Modi

7.34pm: Indian Prime Minister Narendra Modi thanks the people of India for supporting demonetisation of old currency notes. Says the country witnessed a cleansing ritual since November 8 -- the date the Indian government announced its plan to scrap old 500 and 1,000 rupee notes.

(WION with inputs from PTI)

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

The Indian prime minister also urged political parties to take steps to end black money in funding and corruption

India's Prime Minister Narendra Modi has announced a raft of measures for the lower income group, senior citizens and pregnant women. New housing schemes targeting the poor and lower middle class and new initiatives to encourage the farming sector and micro, small and medium enterprises in the country were also a part of the prime minister's New Year sops. "The Prime Minister has congratulated people on having ensured that the world's largest drive against corruption and black money is a huge success. A series of welfare measures for women, senior citizens, farmers and middle classes are his way of thanking the people for their unstinted support," BJP spokesperson G V L Narsimha Rao said. The prime minister also assuaged the honest people that the government will act as a friend to them so that their difficulties are eased. Among the sops announced in his address to the nation at the end of 50-day demonetisation period, Modi said senior citizens will get 8 per cent interest on deposits of upto Rs 7.5 lakh for 10 years and deposit of Rs 6000 into accounts of pregnant and lactating women in rural areas to meet medical expenses. For farmers, he announced that banks will not charge interest for 60 days on loans taken from district cooperative central bank and primary societies for rabi crop. For construction or expansion of a rural house, 3 per cent interest will be waived on loan of upto Rs 2 lakh. Announcing two new schemes under Pradhan Mantri Awas Yojana, he said 4 per cent interest subvention on loans upto Rs 9 lakh and 3 per cent on loan upto Rs 12 lakh. "The law will take its course with full force. The government will help the honest and protect them and see their difficulties are eased. How honest will gain from the government. This government is a friend of good people and wants to build on the good environment for the people to return to goodness," he said. Acknowledging that "serious offences" have been committed by some bank and government officials taking advantage of situation, he said "they will not be spared". Here are the key points from PM Modi's speech: 8.12pm: The prime minister also took a swipe at his critics, saying that the farming sector has not been hit hard by demonetisation. He said fertiliser sales are up by 9 per cent and rabi sowing has seen a 6 per cent increase 8.10pm: Modi has doubled the credit guarantee for MSMEs from Rs 1 crore to Rs 2 crore. That means micro, small and medium enterprises can take loan up to Rs 2 crore without any collateral 8.08pm: People prefer digital transactions. Also reiterates the BHIM app that was launched on December 30. The app will assist the poor in making digital transactions 8.05pm: Cash credit limit to be increased from 20 to 25 per cent on turnover of small enterprises 8.03pm: Modi also announces sops for pregnant women and senior citizens. For senior citizens, fixed deposit up to Rs 7.5 lakh will remain at 8 per cent for the next ten years. He has also promised Rs 6,000 cash assistance to pregnant women. The money will be transferred to their accounts directly. Earlier, pregnant women in 53 districts were given financial assistance of Rs 4,000 as part of pilot project 7.58: Three crore kisan (farmer) cards will be converted into Rupay cards in the next three months 7.56pm: Modi offers a raft of sops for the lower income group to purchase property 7.54pm: The poor and the lower income group can avail up to Rs 9 lakh loan will get 4 per cent exemption on interest. Those who look to avail Rs 12 lakh will get 3 per cent interest rebate 7.53pm: Modi announces two housing schemes for the poor people 7.51pm: Twenty four lakh people have declared their income to be above Rs 10 lakh per annum, says the Prime MInister 7.49pm: Modi also lauds the efforts put in by the banks and post offices across the country, but also chastises some bank officials of trying to help the corrupt skirt the demonetisation policy. Promises to act tough on them 7.47pm: The Naxals, arm dealers were all dealing in black money. But demonetisation has curbed their activities: Modi 7.46pm: The Indian premier promises to crack down on those found guilty of perpetrating the show economy 7.44pm: Plan to scrap cash was to corner the corrupt. Wanted to bolster the honest of the country. Wanted to ease the pain of the common man: PM 7.40pm: It was important to battle the scourge of black money. The rich were amassing money while the poor continued struggling: Modi 7.34pm: Indian Prime Minister Narendra Modi thanks the people of India for supporting demonetisation of old currency notes. Says the country witnessed a cleansing ritual since November 8 -- the date the Indian government announced its plan to scrap old 500 and 1,000 rupee notes. (WION with inputs from PTI)

Demonetisation: Indian PM's thank you note ? Schemes for farmers, women, small businesses

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

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

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

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

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

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

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

Demonetisation: Cash crunch disrupts Buddhist ceremony

Launching a counter-attack against the Bahujan Samaj Party (BSP) supremo Mayawati, the Bharatiya Janata Party (BJP) today asked her if the huge amount of money deposited in her party&#39;s bank account was a money conversion exercise as it accused her of using her Dalit identity to hide &quot;corruption&quot;.

The BJP fielded Law Minister Ravi Shankar Prasad to attack Mayawati, and hurled other charges at them.

&quot;Her allegations are baseless and we reject it with the contempt they deserve. If the Enforcement Directorate (ED) does a routine exercise, why is she so rattled? Will your corruption be hidden in the name of Dalits. Does Mayawati want to say that her corruption should be seen as a fight against Dalits? It is an insult of Dalits,&quot; he told a press conference.

Noting that she did not deny the deposits in the BSP&#39;s account, he asked, &quot;It raises a bigger question. Is it a donation or money conversion exercise?&quot;

The development of Dalits cannot be &quot;mortgaged&quot; to corruption, he said.

Prasad also made light of her claim that Rs 104 crore found in BSP&#39;s bank account in Delhi had come by way of political donations and that those were converted into high denomination notes before being deposited after the note ban kicked in on November 8.

&quot;Small currencies were converted into bigger bills and the money was not deposited in August, September and October but soon after demonetisation. It also raised a lot of suspicion. Now we are getting signals of why she has been opposing the note ban so strongly from the first day,&quot; Prasad said.

He also rejected her claim that the ED&#39;s action was linked to her assertion that the BJP was pushing Samajwadi Party (SP)&nbsp;and Congress for an alliance for the Uttar Pradesh (UP)&nbsp;assembly polls.

&quot;This is nothing but her frustration. She made these comments only yesterday while deposits were made much earlier...As far as BJP is concerned, even if SP, BSP and Congress come together, it will emerge victorious,&quot; he said.

When asked about her demand that BJP too make public the donations it has received, he said all parties submit these details to the Election Commission which puts it on its website.

On the government&#39;s stand on electoral reforms, he said those were primarily the Election Commission&#39;s job but it was open to supporting &quot;positive reforms&quot;.

&quot;As far as improvement is concerned we are certainly open to that. There has to be proper initiative and consensus,&quot; he said.

When asked about Mayawati&#39;s assertion that the ED action would help her in the Uttar Pradesh state elections the same way as the alleged Taj corridor corruption case started under the NDA I in 2007, Prasad said, She had forgotten that there were Lok Sabha elections in 2014 and what happened to her party then.

(PTI)&nbsp;

'Her allegations are baseless and we reject it with the contempt they deserve', said Prasad, the lawyer the BJP fielded to attack Mayawati

Launching a counter-attack against the Bahujan Samaj Party (BSP) supremo Mayawati, the Bharatiya Janata Party (BJP) today asked her if the huge amount of money deposited in her party's bank account was a money conversion exercise as it accused her of using her Dalit identity to hide "corruption". The BJP fielded Law Minister Ravi Shankar Prasad to attack Mayawati, and hurled other charges at them. "Her allegations are baseless and we reject it with the contempt they deserve. If the Enforcement Directorate (ED) does a routine exercise, why is she so rattled? Will your corruption be hidden in the name of Dalits. Does Mayawati want to say that her corruption should be seen as a fight against Dalits? It is an insult of Dalits," he told a press conference. Noting that she did not deny the deposits in the BSP's account, he asked, "It raises a bigger question. Is it a donation or money conversion exercise?" The development of Dalits cannot be "mortgaged" to corruption, he said. Prasad also made light of her claim that Rs 104 crore found in BSP's bank account in Delhi had come by way of political donations and that those were converted into high denomination notes before being deposited after the note ban kicked in on November 8. "Small currencies were converted into bigger bills and the money was not deposited in August, September and October but soon after demonetisation. It also raised a lot of suspicion. Now we are getting signals of why she has been opposing the note ban so strongly from the first day," Prasad said. He also rejected her claim that the ED's action was linked to her assertion that the BJP was pushing Samajwadi Party (SP) and Congress for an alliance for the Uttar Pradesh (UP) assembly polls. "This is nothing but her frustration. She made these comments only yesterday while deposits were made much earlier...As far as BJP is concerned, even if SP, BSP and Congress come together, it will emerge victorious," he said. When asked about her demand that BJP too make public the donations it has received, he said all parties submit these details to the Election Commission which puts it on its website. On the government's stand on electoral reforms, he said those were primarily the Election Commission's job but it was open to supporting "positive reforms". "As far as improvement is concerned we are certainly open to that. There has to be proper initiative and consensus," he said. When asked about Mayawati's assertion that the ED action would help her in the Uttar Pradesh state elections the same way as the alleged Taj corridor corruption case started under the NDA I in 2007, Prasad said, She had forgotten that there were Lok Sabha elections in 2014 and what happened to her party then. (PTI)

BJP attacks Mayawati over Rs 104 cr in bank account

Prime Minister Narendra Modi woved Sunday to crack down on &quot;benami&quot; properties. Benami properties are properties bought in other people&#39;s names in order to convert &quot;black&quot;&nbsp;or untaxed money into &quot;white&quot; and to avoid pay tax. &nbsp;&nbsp;

Referring to the benami properties law, which has so far been lying dormant, he said: &nbsp;&ldquo;We have retrieved it and turned it into an incisive law against benami property. In the coming days, this law will also become operational. For the benefit of the nation, for the benefit of the people, whatever needs to be done will be accorded our top priority,&rdquo; he said.

Modi continued his digital drive on Sunday, exhorting people on his monthly radio address &quot;Mann ki Baat&quot; to continue going &quot;cashless&quot;.&nbsp;

To start with, Mr Modi announced the launch of two lucky-draw schemes -- the Lucky Grahak Yojana for consumers and the Digi Dhan Vyapar Yojana for small traders -- to encourage people to transact digitally.&nbsp;

Starting today, for the next 100 days, Mr Modi said 15,000 lucky shoppers -- who make digital payments rather than use cash -- would get back Rs 1,000 every day. The draw, he said, would be run in a 100 cities across the country.

&quot;Lakhs of people will get crores of rupees,&quot; Mr Modi said.&nbsp;

There would also be a weekly draw with that prize money running into the lakhs,&nbsp;he added.

&ldquo;A bumper draw will be held on BR Ambedkar&rsquo;s birthday (April 14),&rdquo; he said.

Small traders who go digital, Mr Modi said, would be given income tax rebates.&nbsp;

&quot;They (the small traders) must encourage cashless transactions,&quot; Modi said.&nbsp;

The prime minister also vowed to crack down on &#39;benami&#39; (fictitious) properties, adding that he would do everything to thwart corruption in the country. People usually buy such properties to avoid taxes.&nbsp;

Curiosity to go cashless

&quot;Today there is curiosity among people as to how can one go cashless. People want to learn from each other,&quot;&nbsp;Mr Modi said

&quot;You will be surprised to know that 30 crore people in India have RuPay cards, of those 20 crore belong to poor families who have Jan Dhan accounts,&quot; he added.&nbsp;

And finally, said Mr Modi, cashless transactions have seen a 200 to 300% increase in recent times

The informal sector

Mr Modi also touched upon the informal sector, which is where most of the stories of hardship are coming in from.&nbsp;(The demonetisation of India&#39;s 500- and 1,000-rupee notes on November 8 sucked 86% of total currency in circulation at the time out of the market. With so much cash gone, things have been hard for people in a country where 68% of transactions are cash-based. If you were to calculate by volume, that figure goes up to 98%. But the government has stuck to its guns, saying the demonetisation would put a stop to &quot;black&quot;&nbsp;or untaxed money and terror funding.&nbsp;And since then, it has also said it would like to see India becoming a &quot;cashless&quot;&nbsp;or at least a &quot;less-cash&quot;&nbsp;economy.)&nbsp;

&quot;Informal sector is very significant in our country and mostly they receive salary/wages in cash and are often even exploitated,&quot;&nbsp;Mr Modi said.&nbsp;

A golden opportunity

But looking on the bright side, Mr Modi said: &quot;This digital movement is a golden opportunity for youth and start-ups. They can open new avenues through it.&quot;&nbsp;

And that, &quot;We should be at the forefront of using digital means to make payments and transactions.&quot;&nbsp;

Feeback, both bad and good

He said people had written to him, telling him about the problems they had had to put up with&nbsp;because of the demonetisation. But some people he said, praised the&nbsp;demonetisation, and how it fights corruption.

&quot;I thank people as they not only went through hardships but also answered back those who tried to mislead the public,&quot; said Mr Modi.&nbsp;

The many rule changes

&quot;Lot of questions are being raised on frequent change of rules but I want to say that I have decided to take on those indulging in corruption,&quot; Mr Modi said. He added that the changes in rules -- there have been 60 so far since November 8 -- were a result of feedback. A way of rectifying the rules to try and make things easier for people.&nbsp;

Not the end, only the beginning

&quot;I assure you that this is not the end, this is just the beginning in our fight against corruption. It is our priority to do whatever it takes for the betterment of our nation,&quot; said Mr Modi.&nbsp;

He added, &quot;Black money hoarders are being nabbed across the country. Secret is that information by common people enables us to do it.&quot;&nbsp;

And that, &quot;Many are writing to me: Modiji thak mat jaana, rukk mat jaana aur jitna kathor kadam utha sakte ho uthao.&quot; (Do not tire, do not stop, take the harshest step&nbsp;that you can.)&nbsp;

(WION)

He says the so-far dormant benami properties law has been retrieved and will soon be operational

Prime Minister Narendra Modi woved Sunday to crack down on "benami" properties. Benami properties are properties bought in other people's names in order to convert "black" or untaxed money into "white" and to avoid pay tax. Referring to the benami properties law, which has so far been lying dormant, he said: “We have retrieved it and turned it into an incisive law against benami property. In the coming days, this law will also become operational. For the benefit of the nation, for the benefit of the people, whatever needs to be done will be accorded our top priority,” he said. Modi continued his digital drive on Sunday, exhorting people on his monthly radio address "Mann ki Baat" to continue going "cashless". To start with, Mr Modi announced the launch of two lucky-draw schemes -- the Lucky Grahak Yojana for consumers and the Digi Dhan Vyapar Yojana for small traders -- to encourage people to transact digitally. Starting today, for the next 100 days, Mr Modi said 15,000 lucky shoppers -- who make digital payments rather than use cash -- would get back Rs 1,000 every day. The draw, he said, would be run in a 100 cities across the country. "Lakhs of people will get crores of rupees," Mr Modi said. There would also be a weekly draw with that prize money running into the lakhs, he added. “A bumper draw will be held on BR Ambedkar’s birthday (April 14),” he said. Small traders who go digital, Mr Modi said, would be given income tax rebates. "They (the small traders) must encourage cashless transactions," Modi said. The prime minister also vowed to crack down on 'benami' (fictitious) properties, adding that he would do everything to thwart corruption in the country. People usually buy such properties to avoid taxes. Curiosity to go cashless "Today there is curiosity among people as to how can one go cashless. People want to learn from each other," Mr Modi said "You will be surprised to know that 30 crore people in India have RuPay cards, of those 20 crore belong to poor families who have Jan Dhan accounts," he added. And finally, said Mr Modi, cashless transactions have seen a 200 to 300% increase in recent times The informal sector Mr Modi also touched upon the informal sector, which is where most of the stories of hardship are coming in from. (The demonetisation of India's 500- and 1,000-rupee notes on November 8 sucked 86% of total currency in circulation at the time out of the market. With so much cash gone, things have been hard for people in a country where 68% of transactions are cash-based. If you were to calculate by volume, that figure goes up to 98%. But the government has stuck to its guns, saying the demonetisation would put a stop to "black" or untaxed money and terror funding. And since then, it has also said it would like to see India becoming a "cashless" or at least a "less-cash" economy.) "Informal sector is very significant in our country and mostly they receive salary/wages in cash and are often even exploitated," Mr Modi said. A golden opportunity But looking on the bright side, Mr Modi said: "This digital movement is a golden opportunity for youth and start-ups. They can open new avenues through it." And that, "We should be at the forefront of using digital means to make payments and transactions." Feeback, both bad and good He said people had written to him, telling him about the problems they had had to put up with because of the demonetisation. But some people he said, praised the demonetisation, and how it fights corruption. "I thank people as they not only went through hardships but also answered back those who tried to mislead the public," said Mr Modi. The many rule changes "Lot of questions are being raised on frequent change of rules but I want to say that I have decided to take on those indulging in corruption," Mr Modi said. He added that the changes in rules -- there have been 60 so far since November 8 -- were a result of feedback. A way of rectifying the rules to try and make things easier for people. Not the end, only the beginning "I assure you that this is not the end, this is just the beginning in our fight against corruption. It is our priority to do whatever it takes for the betterment of our nation," said Mr Modi. He added, "Black money hoarders are being nabbed across the country. Secret is that information by common people enables us to do it." And that, "Many are writing to me: Modiji thak mat jaana, rukk mat jaana aur jitna kathor kadam utha sakte ho uthao." (Do not tire, do not stop, take the harshest step that you can.) (WION)

Demonetisation: Prime Minister Modi vows to crack down on 'benami' properties

Why do Congress Vice President Rahul Gandhi and Prime Minister Narendra Modi continue to pulverise each other with trivialities, sarcasm and cherry picked facts. Is it temporary or does it represents a permanent shift in the way politicians, mainstream and social media would behave with each other? In my opinion, it is a new reality of Indian political life, and it needs to be altered before it does deep and permanent damage to India&rsquo;s democratic discourse. It creates a culture to out-talk the adversary rather than engage in a dialogue, which is the most important pillar of democracy. Nations cannot turn their backs upon new technologies, but must be aware of the potential it holds to change the institution for which it is being imagined to help.

The new technology indeed liberates opinion from few and transfers it to everyone who can afford a 3G connection. It has expanded the pool of opinion makers, both geographically and class-wise. The very act has stolen the thunder from corporately structured mainstream media. It also makes mainstream media look compromised as talk on the social media is open to issue of corporate political nexus.The reduction of message to lowest common denominator, coupled with furious and repetitive messaging, makes technology&nbsp;used&nbsp;less for&nbsp;debate and more about putting down a rival on any trivial issue it can find. &nbsp;

So the larger question is how&nbsp;this aggressive messaging-politics will affect India. In the West it galvanised stereotypes masquerading as facts creating a minority complex within the majority. The results were on the expected line. The liberal opinion was rendered ineffective as it was criticised from the vantage point of political outsider. The accusation, whether grounded in fact or not, creates enough doubt in people to either extend or withdraw support on major issues. It solidifies the support constituency and hardens the opinion, rather than making it open to new ideas. It was best evident when Hillary Clinton lost the election&nbsp;because,&nbsp;only days before voters went to the polls,&nbsp;the FBI chief announced that the&nbsp;agency would open up a new investigation into her email scandal; the suggestion of the case re-opening confirmed her guilt&nbsp;for&nbsp;people who had been&nbsp;barraged with negative email messaging for months. Their&nbsp;minds were already so made up that&nbsp;the fact that&nbsp;she was eventually cleared of all wrongdoing, again, made no impact on their opinion.

Will this happen in India or not is a different story, but it renders certain institutional interactions compromised. The worst brunt of the redefined relationship between Rahul Gandhi and Narendra Modi because of technologically-enabled constant messaging was taken by the Parliament. Despite repeated offer of talks, both sides remained firm on their position and didn&rsquo;t budge as constant messaging solidified the views of supporters, reducing political elbow room for any compromise. So instead of genuine dialogue, the political discourse has reduced itself to out-talk the other. The process of out-talk, which was limited to assembly and national elections, has extended itself to normal discourse which relies on conversation. The out-talk might have immediate benefits, like management of opinion, but it creates an unhealthy political discourse.

Robust democracies rest&nbsp;on structured and unstructured discussions in every space available. Technology should be used to&nbsp;enable this, but to expect it&nbsp;to act as a wise&nbsp;enabler would be to fool oneself;&nbsp;technology is inherently amoral. The moral rim sprouts from the cultural bed unique to the country where the democracy rests. If India wants to walk a different path, especially from the West--which for the&nbsp;past 50 years&nbsp;has&nbsp;been exporting different phobias, ranging from socialism to an absence of liberty in West Asia and now Islam--it needs to do more. Indian political actors must re-learn the art of conversation and not score partisan points&nbsp;by out-talking each other.

A conversation is a journey in itself, and to out-talk is to walk on a path where the end has been imagined and consumed even before the first syllable has been uttered. &nbsp;

(WION)

Technology has reduced India's political discourse to out-talking opponents, rather than meaningful dialogue. Hopefully, this can change

Why do Congress Vice President Rahul Gandhi and Prime Minister Narendra Modi continue to pulverise each other with trivialities, sarcasm and cherry picked facts. Is it temporary or does it represents a permanent shift in the way politicians, mainstream and social media would behave with each other? In my opinion, it is a new reality of Indian political life, and it needs to be altered before it does deep and permanent damage to India’s democratic discourse. It creates a culture to out-talk the adversary rather than engage in a dialogue, which is the most important pillar of democracy. Nations cannot turn their backs upon new technologies, but must be aware of the potential it holds to change the institution for which it is being imagined to help. The new technology indeed liberates opinion from few and transfers it to everyone who can afford a 3G connection. It has expanded the pool of opinion makers, both geographically and class-wise. The very act has stolen the thunder from corporately structured mainstream media. It also makes mainstream media look compromised as talk on the social media is open to issue of corporate political nexus.The reduction of message to lowest common denominator, coupled with furious and repetitive messaging, makes technology used less for debate and more about putting down a rival on any trivial issue it can find. So the larger question is how this aggressive messaging-politics will affect India. In the West it galvanised stereotypes masquerading as facts creating a minority complex within the majority. The results were on the expected line. The liberal opinion was rendered ineffective as it was criticised from the vantage point of political outsider. The accusation, whether grounded in fact or not, creates enough doubt in people to either extend or withdraw support on major issues. It solidifies the support constituency and hardens the opinion, rather than making it open to new ideas. It was best evident when Hillary Clinton lost the election because, only days before voters went to the polls, the FBI chief announced that the agency would open up a new investigation into her email scandal; the suggestion of the case re-opening confirmed her guilt for people who had been barraged with negative email messaging for months. Their minds were already so made up that the fact that she was eventually cleared of all wrongdoing, again, made no impact on their opinion. Will this happen in India or not is a different story, but it renders certain institutional interactions compromised. The worst brunt of the redefined relationship between Rahul Gandhi and Narendra Modi because of technologically-enabled constant messaging was taken by the Parliament. Despite repeated offer of talks, both sides remained firm on their position and didn’t budge as constant messaging solidified the views of supporters, reducing political elbow room for any compromise. So instead of genuine dialogue, the political discourse has reduced itself to out-talk the other. The process of out-talk, which was limited to assembly and national elections, has extended itself to normal discourse which relies on conversation. The out-talk might have immediate benefits, like management of opinion, but it creates an unhealthy political discourse. Robust democracies rest on structured and unstructured discussions in every space available. Technology should be used to enable this, but to expect it to act as a wise enabler would be to fool oneself; technology is inherently amoral. The moral rim sprouts from the cultural bed unique to the country where the democracy rests. If India wants to walk a different path, especially from the West--which for the past 50 years has been exporting different phobias, ranging from socialism to an absence of liberty in West Asia and now Islam--it needs to do more. Indian political actors must re-learn the art of conversation and not score partisan points by out-talking each other. A conversation is a journey in itself, and to out-talk is to walk on a path where the end has been imagined and consumed even before the first syllable has been uttered. (WION)

Facts or no facts : Let?s out-talk the other guy

US President Barack Obama has signed into law the $618 billion defence budget for 2017, which enhances security cooperation with India, news agency Press Trust of India reported.

The bill also conditions nearly half of US funding to Pakistan on certification that it is taking demonstrable steps against the Haqqani Network.

The National Defence Authorisation Act (NDAA) 2017 asks the US defence secretary and secretary of state to take the steps necessary to recognise India as a &ldquo;major defence partner&rdquo; of the US.

It also asks the administration to help resolve any remaining issues impeding US-India defence and security cooperation, trade, and co-production and co-development opportunities, PTI reported.

The NDAA imposes four conditions on Pakistan to be eligible for $400 million of $900 million of coalition support funds (CSF), PTI reported. &nbsp;

PTI reported that the US defence secretary needs to certify to Congress that Pakistan continues to conduct military operations that are contributing significantly to disrupting the safe havens and freedom of movement of the Haqqani Network in Pakistan and that Islamabad has taken steps to demonstrate its commitment to prevent the Haqqani Network from using any of its territory as a safe haven.

(WION with inputs from PTI)

The bill conditions nearly half of US funding to Pakistan on certification that it is taking demonstrable steps against the Haqqani Network

US President Barack Obama has signed into law the $618 billion defence budget for 2017, which enhances security cooperation with India, news agency Press Trust of India reported. The bill also conditions nearly half of US funding to Pakistan on certification that it is taking demonstrable steps against the Haqqani Network. The National Defence Authorisation Act (NDAA) 2017 asks the US defence secretary and secretary of state to take the steps necessary to recognise India as a “major defence partner” of the US. It also asks the administration to help resolve any remaining issues impeding US-India defence and security cooperation, trade, and co-production and co-development opportunities, PTI reported. The NDAA imposes four conditions on Pakistan to be eligible for $400 million of $900 million of coalition support funds (CSF), PTI reported. PTI reported that the US defence secretary needs to certify to Congress that Pakistan continues to conduct military operations that are contributing significantly to disrupting the safe havens and freedom of movement of the Haqqani Network in Pakistan and that Islamabad has taken steps to demonstrate its commitment to prevent the Haqqani Network from using any of its territory as a safe haven. (WION with inputs from PTI)

Obama signs $618 billion defence bill, boosts security cooperation with India

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

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

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

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

Indian Prime Minister Narendra Modi Saturday laid the foundation stone for what is set to be the world&#39;s tallest statue, as its projected multi-million-dollar cost sparked criticism and an online petition against the project.

The statue of Chhatrapati Shivaji, a 17th-century Hindu ruler who fought the Muslim Mughal dynasty and carved out his own kingdom, will be more than twice the size of the Statue of Liberty and five times higher than Christ the Redeemer in Rio de Janeiro.

The structure, a pet project of Hindu nationalist Modi, will rise 192 metres (630 feet) from an island off the western coast of Mumbai in the Arabian Sea.

When finished, it will tower over the 128-metre Spring Temple Buddha in China&#39;s Henan province that is currently the world&#39;s tallest statue.

&quot;Even in the midst of struggle, Shivaji Maharaj remained a torchbearer of good governance,&quot; Modi said at the inaugural event.&nbsp;

&quot;So many aspects of his personality inspire us.&quot; &nbsp;&nbsp;&nbsp;&nbsp;

The government of Maharashtra state, of which Mumbai is the capital, is expected to spend some 36 billion rupees ($530 million) on the statue, which is scheduled for completion by 2019.

But the project has drawn brickbats from many people who instead want the government to devote its resources to infrastructure, education and development.

By Saturday evening, more than 27,000 people had signed an online petition on Change.org urging the government to drop the plans.

&quot;Apart from a waste of money, this statue is going to be terrible for the environment; for the traffic situation in South Bombay&nbsp;and a security nightmare,&quot; said the petition.

Shivaji is revered by many in&nbsp;Maharashtra. Mumbai&#39;s main train station and airport are named after the ruler, who is also one of the symbols of a Hindu cultural revival promoted by Modi.

The plans for the latest memorial follow an earlier initiative by Modi to build a&nbsp;182-metre tall tribute to Indian independence hero Sardar Vallabbhai Patel in his home state of Gujarat, at an estimated cost of 25 billion rupees ($368 million).&nbsp;Construction on that&nbsp;statue began in 2014.

(AFP)

The statue of Chhatrapati Shivaji, a venerated 17th-century Hindu ruler, will be more than twice the size of the Statue of Liberty

Indian Prime Minister Narendra Modi Saturday laid the foundation stone for what is set to be the world's tallest statue, as its projected multi-million-dollar cost sparked criticism and an online petition against the project. The statue of Chhatrapati Shivaji, a 17th-century Hindu ruler who fought the Muslim Mughal dynasty and carved out his own kingdom, will be more than twice the size of the Statue of Liberty and five times higher than Christ the Redeemer in Rio de Janeiro. The structure, a pet project of Hindu nationalist Modi, will rise 192 metres (630 feet) from an island off the western coast of Mumbai in the Arabian Sea. When finished, it will tower over the 128-metre Spring Temple Buddha in China's Henan province that is currently the world's tallest statue. "Even in the midst of struggle, Shivaji Maharaj remained a torchbearer of good governance," Modi said at the inaugural event. "So many aspects of his personality inspire us." The government of Maharashtra state, of which Mumbai is the capital, is expected to spend some 36 billion rupees ($530 million) on the statue, which is scheduled for completion by 2019. But the project has drawn brickbats from many people who instead want the government to devote its resources to infrastructure, education and development. By Saturday evening, more than 27,000 people had signed an online petition on Change.org urging the government to drop the plans. "Apart from a waste of money, this statue is going to be terrible for the environment; for the traffic situation in South Bombay and a security nightmare," said the petition. Shivaji is revered by many in Maharashtra. Mumbai's main train station and airport are named after the ruler, who is also one of the symbols of a Hindu cultural revival promoted by Modi. The plans for the latest memorial follow an earlier initiative by Modi to build a 182-metre tall tribute to Indian independence hero Sardar Vallabbhai Patel in his home state of Gujarat, at an estimated cost of 25 billion rupees ($368 million). Construction on that statue began in 2014. (AFP)

India lays foundation stone for world's tallest statue

India criticised&nbsp;Moody&#39;s&nbsp;ratings methods and pushed aggressively for an upgrade, documents reviewed by Reuters show, but the US-based agency declined to budge citing concerns over the country&#39;s debt levels and fragile banks.

Winning a better credit rating on India&#39;s sovereign debt would have been a much-needed endorsement of Prime Minister Narendra Modi&#39;s economic stewardship, helping to attract foreign investment and accelerate growth.

Since storming to power in 2014, Modi has unveiled measures to boost investment, cool inflation and narrow the fiscal and current account deficits, but his policies have not been rewarded with a ratings upgrade from any of the &quot;big three&quot; global ratings agencies, who say more is needed.

Previously unpublished correspondence between India&#39;s finance ministry and&nbsp;Moody&#39;s&nbsp;shows New Delhi failed to assuage the ratings agency&#39;s concerns about the cost of its debt burden and a banking sector weighed down by $136 billion in bad loans.

In letters and emails written in October, the finance ministry questioned&nbsp;Moody&#39;s&nbsp;methodology, saying it was not accounting for a steady decline in the India&#39;s debt burden in recent years. It said the agency ignored countries&#39; levels of development when assessing their fiscal strength.

Rejecting those arguments,&nbsp;Moody&#39;s&nbsp;said India&#39;s debt situation was not as rosy as the government maintained and its banks were a cause for concern, the correspondence seen by Reuters showed.

Moody&#39;s&nbsp;and one of its lead sovereign analysts, Marie Diron, declined to comment on the correspondence, saying ratings deliberations were confidential. India&#39;s finance ministry did not respond to requests for comment.

Arvind Mayaram, a former chief finance ministry official, called the government&#39;s approach &quot;completely unusual&quot;.

&quot;There was no way pressure could be put on rating agencies,&quot; Mayaram told Reuters. &quot;It&#39;s not done.&quot;

Debt burden, bad loans

India has been the world&#39;s fastest-growing major economy over the past two years, but that rapid expansion has done little to broaden the government&#39;s revenue base.

At nearly 21 per cent of gross domestic product (GDP), India&#39;s revenues are lower than the 27.1 per cent median for Baa-rated countries. India is rated at Baa3 by&nbsp;Moody&#39;s, the agency&#39;s lowest notch for debt considered investment grade.

A higher rating would signify to bond investors that India was more creditworthy and help to lower its borrowing costs.

While India&#39;s debt-to-GDP ratio has dropped to 66.7 percent from 79.5 percent in 2004-05, interest payments absorb more than a fifth of government revenues.

Moody&#39;s&nbsp;representatives, including Diron, visited North Block, the colonial sandstone building in the Indian capital that houses the finance ministry, on Sept. 21 for a discussion on a ratings review.

The atmosphere at the meeting with Economic Affairs Secretary Shaktikanta Das, one of the ministry&#39;s most senior officials, and his team was tense, according to an Indian official present, after Diron had told local media the previous day that a ratings upgrade for India was some years away.

On Sept. 30,&nbsp;Moody&#39;s&nbsp;explained its methodology to Indian officials in a teleconference.

Lobbying for an upgrade

Four days later, the finance ministry sent an email to Diron questioning&nbsp;Moody&#39;s&nbsp;metrics on fiscal strength. The government cited the examples of Japan and Portugal, which enjoy better ratings despite debts around twice the size of their economies.

&quot;Given that countries are on different stages of economic and social development, should countries be benchmarked against a median or mean number (as is done by&nbsp;Moody&#39;s)&quot; the email asked.

In India&#39;s case, &quot;while the debt burden lowered significantly post 2004, this did not get reflected in the ratings&quot;, the ministry argued.

New Delhi urged Diron to look at improvements in the factors - better forex reserves and economic growth - that&nbsp;Moody&#39;s&nbsp;had considered when handing India its last ratings upgrade in 2004.

In a reply the next day, Diron said that, not only was India&#39;s debt burden high relative to other countries with the same credit rating, but its debt affordability was also low.

She added that a resolution to the banking sector&#39;s bad loan problems was &quot;unlikely&quot; in the near-term.

In a last-ditch effort on Oct. 27, Economic Affairs Secretary Das sent a six-page letter to Singapore-based Diron, addressed to&nbsp;Moody&#39;s&nbsp;New York headquarters.

Reiterating points on India&#39;s fiscal strength, Das asked&nbsp;Moody&#39;s&nbsp;for a &quot;better appreciation of the factual position&quot;.

Das dismissed&nbsp;Moody&#39;s&nbsp;concerns on India&#39;s public finances as &quot;unwarranted&quot; and told the agency that there was &quot;scope for further lowering&quot; the political risk perception to &quot;very low&quot;.

&quot;In the light of stable external debt parameters and the slew of reforms introduced in the realm of foreign direct investment, you may like to reconsider your assessment on &#39;external vulnerability risk&#39;,&quot; he wrote.

Moody&#39;s&nbsp;on Nov. 16 affirmed its Baa3 issuer rating for India, while maintaining a positive outlook, saying the government&#39;s efforts had not yet achieved conditions that would support an upgrade.

(Reuters)

Winning a better credit rating on India's sovereign debt would have been a much-needed endorsement of Prime Minister Narendra Modi's regime

India criticised Moody's ratings methods and pushed aggressively for an upgrade, documents reviewed by Reuters show, but the US-based agency declined to budge citing concerns over the country's debt levels and fragile banks. Winning a better credit rating on India's sovereign debt would have been a much-needed endorsement of Prime Minister Narendra Modi's economic stewardship, helping to attract foreign investment and accelerate growth. Since storming to power in 2014, Modi has unveiled measures to boost investment, cool inflation and narrow the fiscal and current account deficits, but his policies have not been rewarded with a ratings upgrade from any of the "big three" global ratings agencies, who say more is needed. Previously unpublished correspondence between India's finance ministry and Moody's shows New Delhi failed to assuage the ratings agency's concerns about the cost of its debt burden and a banking sector weighed down by $136 billion in bad loans. In letters and emails written in October, the finance ministry questioned Moody's methodology, saying it was not accounting for a steady decline in the India's debt burden in recent years. It said the agency ignored countries' levels of development when assessing their fiscal strength. Rejecting those arguments, Moody's said India's debt situation was not as rosy as the government maintained and its banks were a cause for concern, the correspondence seen by Reuters showed. Moody's and one of its lead sovereign analysts, Marie Diron, declined to comment on the correspondence, saying ratings deliberations were confidential. India's finance ministry did not respond to requests for comment. Arvind Mayaram, a former chief finance ministry official, called the government's approach "completely unusual". "There was no way pressure could be put on rating agencies," Mayaram told Reuters. "It's not done." Debt burden, bad loans India has been the world's fastest-growing major economy over the past two years, but that rapid expansion has done little to broaden the government's revenue base. At nearly 21 per cent of gross domestic product (GDP), India's revenues are lower than the 27.1 per cent median for Baa-rated countries. India is rated at Baa3 by Moody's, the agency's lowest notch for debt considered investment grade. A higher rating would signify to bond investors that India was more creditworthy and help to lower its borrowing costs. While India's debt-to-GDP ratio has dropped to 66.7 percent from 79.5 percent in 2004-05, interest payments absorb more than a fifth of government revenues. Moody's representatives, including Diron, visited North Block, the colonial sandstone building in the Indian capital that houses the finance ministry, on Sept. 21 for a discussion on a ratings review. The atmosphere at the meeting with Economic Affairs Secretary Shaktikanta Das, one of the ministry's most senior officials, and his team was tense, according to an Indian official present, after Diron had told local media the previous day that a ratings upgrade for India was some years away. On Sept. 30, Moody's explained its methodology to Indian officials in a teleconference. Lobbying for an upgrade Four days later, the finance ministry sent an email to Diron questioning Moody's metrics on fiscal strength. The government cited the examples of Japan and Portugal, which enjoy better ratings despite debts around twice the size of their economies. "Given that countries are on different stages of economic and social development, should countries be benchmarked against a median or mean number (as is done by Moody's)" the email asked. In India's case, "while the debt burden lowered significantly post 2004, this did not get reflected in the ratings", the ministry argued. New Delhi urged Diron to look at improvements in the factors - better forex reserves and economic growth - that Moody's had considered when handing India its last ratings upgrade in 2004. In a reply the next day, Diron said that, not only was India's debt burden high relative to other countries with the same credit rating, but its debt affordability was also low. She added that a resolution to the banking sector's bad loan problems was "unlikely" in the near-term. In a last-ditch effort on Oct. 27, Economic Affairs Secretary Das sent a six-page letter to Singapore-based Diron, addressed to Moody's New York headquarters. Reiterating points on India's fiscal strength, Das asked Moody's for a "better appreciation of the factual position". Das dismissed Moody's concerns on India's public finances as "unwarranted" and told the agency that there was "scope for further lowering" the political risk perception to "very low". "In the light of stable external debt parameters and the slew of reforms introduced in the realm of foreign direct investment, you may like to reconsider your assessment on 'external vulnerability risk'," he wrote. Moody's on Nov. 16 affirmed its Baa3 issuer rating for India, while maintaining a positive outlook, saying the government's efforts had not yet achieved conditions that would support an upgrade. (Reuters)

India's Modi government pushed Moody's for better credit rating but failed: Reuters

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

With both of them keeping an eye on the UP election -- which goes to the polls early next year -- Prime Minister Modi and the Opposition Congress&#39; Rahul Gandhi addressed rallies in the state Monday.&nbsp;

Modi spoke in Kanpur, Rahul in Jaunpur, and while both of them obviously talked about the country&#39;s recent demonetisation -- there really is nothing else people are talking about nowadays -- the two said the exact opposite of each other.&nbsp;

Modi told his supporters that today, for the first time, they had a central government dedicated to the poor.

Rahul told his supporters that demonetisation was not a fight against the corrupt. It was a fight against the poor, the farmer, and the underprivileged.

Said Modi: We are fighting against black money and corruption. We are doing all we can to make a better India. Our agenda is to stop corruption, stop black money. But other people have an agenda of &nbsp;&quot;stop Parliament&quot;.

Said Rahul: Modi has not only sucked up the poor&#39;s money, he has also sucked out their blood.

Rahul added, &quot;We said to Modi that the poor, farmers, are crying. I urged him to waive the loans of farmers. But he did not reply. He did not say a word.&quot;

Rahul&#39;s speech also stepped into -- again -- the realm of the speculative&nbsp;

In the last few months, he said, Mr Modi has given 60 per cent of India&#39;s wealth to one per cent of India&#39;s population. And that a handful of families, some 50 of them, hold a majority of this -- 60 per cent&nbsp;of the country&#39;s wealth.

&quot;I ask you,&#39; he said, &quot;is black money with the people of India or with those 50 families?&quot;&nbsp;

Rahul has a habit of alleging the sensational. Last week, he announced to the media that he had proof of &quot;personal acts of corruption&quot; by Prime Minister Modi.&nbsp;

But he refused to elaborate, saying he would say so only in Parliament.&nbsp;

A few years ago, he had alleged that the Uttar Pradesh police had shot dead people in the villages of Bhatta and Parsaul -- the villages&#39; land had been acquired by the government and the villagers were protesting.&nbsp;

Forensics later proved the allegation to be untrue.&nbsp;

Modi, whose attacks can also veer towards the personal, tended not to this time. All he did say was that the Congress&#39; style of functioning was &quot;unaccountable, corrupt and doing as they please -- this is the functioning style of the Congress&quot;.

He added that he saw a strong desire for change in Uttar Pradesh. &quot;I don&#39;t just see winds of change. I see a storm for change,&#39; he said.

He added that if the youth of Uttar Pradesh come together, then nothing can stop India from progressing.&nbsp;

UP and 2019

Uttar Pradesh will go to the polls early next year.

The election will be even more closely watched than usual. UP is one of India&#39;s largest states and very important politically.&nbsp;

But more importantly, the result will be seen a referendum on Modi&#39;s shock demonetisation. And an indicator perhaps of which way the 2019 national election will go.&nbsp;

On November 8, Modi had announced -- to everybody&#39;s surprise -- that the country&#39;s 500 and 1,000-rupee notes would cease to be legal tender. He said he was doing so to get at the country&#39;s &quot;black&quot; or untaxed money and terror funding.&nbsp;

The move found widespread support, but it also led to 86 per cent&nbsp;of the country&#39;s currency being sucked out of circulation. News reports talked of people, left with no cash, being unable to buy food and essential medicines.&nbsp;

The chief minister of Bengal, Mamata Banerjee, recently said more than a 100 people had died because of demonetisation.&nbsp;

Today, on the ground, depending on whom you talk to, there is either tremendous anger against the move or it has dissipated.&nbsp;

The Uttar Pradesh election will tell for certain.

(WION) 
&nbsp;

Modi said, for the first time, the central govt is dedicated to the poor. Rahul said demonetisation was a fight against the poor

With both of them keeping an eye on the UP election -- which goes to the polls early next year -- Prime Minister Modi and the Opposition Congress' Rahul Gandhi addressed rallies in the state Monday. Modi spoke in Kanpur, Rahul in Jaunpur, and while both of them obviously talked about the country's recent demonetisation -- there really is nothing else people are talking about nowadays -- the two said the exact opposite of each other. Modi told his supporters that today, for the first time, they had a central government dedicated to the poor. Rahul told his supporters that demonetisation was not a fight against the corrupt. It was a fight against the poor, the farmer, and the underprivileged. Said Modi: We are fighting against black money and corruption. We are doing all we can to make a better India. Our agenda is to stop corruption, stop black money. But other people have an agenda of "stop Parliament". Said Rahul: Modi has not only sucked up the poor's money, he has also sucked out their blood. Rahul added, "We said to Modi that the poor, farmers, are crying. I urged him to waive the loans of farmers. But he did not reply. He did not say a word." Rahul's speech also stepped into -- again -- the realm of the speculative In the last few months, he said, Mr Modi has given 60 per cent of India's wealth to one per cent of India's population. And that a handful of families, some 50 of them, hold a majority of this -- 60 per cent of the country's wealth. "I ask you,' he said, "is black money with the people of India or with those 50 families?" Rahul has a habit of alleging the sensational. Last week, he announced to the media that he had proof of "personal acts of corruption" by Prime Minister Modi. But he refused to elaborate, saying he would say so only in Parliament. A few years ago, he had alleged that the Uttar Pradesh police had shot dead people in the villages of Bhatta and Parsaul -- the villages' land had been acquired by the government and the villagers were protesting. Forensics later proved the allegation to be untrue. Modi, whose attacks can also veer towards the personal, tended not to this time. All he did say was that the Congress' style of functioning was "unaccountable, corrupt and doing as they please -- this is the functioning style of the Congress". He added that he saw a strong desire for change in Uttar Pradesh. "I don't just see winds of change. I see a storm for change,' he said. He added that if the youth of Uttar Pradesh come together, then nothing can stop India from progressing. UP and 2019 Uttar Pradesh will go to the polls early next year. The election will be even more closely watched than usual. UP is one of India's largest states and very important politically. But more importantly, the result will be seen a referendum on Modi's shock demonetisation. And an indicator perhaps of which way the 2019 national election will go. On November 8, Modi had announced -- to everybody's surprise -- that the country's 500 and 1,000-rupee notes would cease to be legal tender. He said he was doing so to get at the country's "black" or untaxed money and terror funding. The move found widespread support, but it also led to 86 per cent of the country's currency being sucked out of circulation. News reports talked of people, left with no cash, being unable to buy food and essential medicines. The chief minister of Bengal, Mamata Banerjee, recently said more than a 100 people had died because of demonetisation. Today, on the ground, depending on whom you talk to, there is either tremendous anger against the move or it has dissipated. The Uttar Pradesh election will tell for certain. (WION)

Modi & Rahul address rallies in UP, say exact opposite of each other

The Rajya Sabha was adjourned sine die Friday, and the Lok Sabha was adjourned till noon because of the uproar over demonetisation.&nbsp;

Today is the last day of the winter session of Parliament, and it seems unlikely that the Lok Sabha will be able to conduct much business when it convenes again.&nbsp;

Parliament has able to conduct virtually no business this session because of the tussle between the Opposition and the government over demonetisation. The Opposition wants a vote on the matter; so far, the government has been able to stall them.&nbsp;

Earlier today, Prime Minister Narendra Modi spoke to his party MPs at a BJP parliamentary party meet. He told them to go to their constituencies and talk to the people.

Urge the people to adopt the digital economy as a way of life, he said.

He added that earlier, the Opposition would join hands against the government over scams like 2G and Coalgate, but now the Opposition is united against the government&#39;s moves to curb black money and corruption.

And that for the Congress, the&nbsp;party is above the country but for the BJP,&nbsp;the country&#39;s interests are supreme.

After the meeting, Modi met a delegation of the opposition Congress, including Rahul Gandhi.

Gandhi,&nbsp;the vice-president of the Indian National Congress,&nbsp;had sought an appointment with PM Modi to present a list of farmers&#39; demands collected during his extensive tour of the election-bound state of Uttar Pradesh.

Later today, Opposition parties plan on marching to Rashtrapati Bhavan at 12 pm to meet the President and register their protest against the government&#39;s demonetisation move.

The house also failed to transact any business Thursday, again because of the standoff between the government and the Opposition over demonetisation, and the AgustaWestland scam.

The government dared Congress President Sonia Gandhi Thursday to respond in Parliament to allegations against her party over the AgustaWestland scam, claiming the Opposition party is stalling both Houses as it has much to hide.

From the other side, Rahul Gandhi had Wednesday alleged that he had detailed information about &quot;personal corruption&quot; by Prime Minister Narendra Modi which he wanted to present in the Lok Sabha but was not being allowed to do so by the PM.

(A version of this article first appeared in DNA)

The Lok Sabha was adjourned till noon. Today is the last day of the winter session of Parliament

The Rajya Sabha was adjourned sine die Friday, and the Lok Sabha was adjourned till noon because of the uproar over demonetisation. Today is the last day of the winter session of Parliament, and it seems unlikely that the Lok Sabha will be able to conduct much business when it convenes again. Parliament has able to conduct virtually no business this session because of the tussle between the Opposition and the government over demonetisation. The Opposition wants a vote on the matter; so far, the government has been able to stall them. Earlier today, Prime Minister Narendra Modi spoke to his party MPs at a BJP parliamentary party meet. He told them to go to their constituencies and talk to the people. Urge the people to adopt the digital economy as a way of life, he said. He added that earlier, the Opposition would join hands against the government over scams like 2G and Coalgate, but now the Opposition is united against the government's moves to curb black money and corruption. And that for the Congress, the party is above the country but for the BJP, the country's interests are supreme. After the meeting, Modi met a delegation of the opposition Congress, including Rahul Gandhi. Gandhi, the vice-president of the Indian National Congress, had sought an appointment with PM Modi to present a list of farmers' demands collected during his extensive tour of the election-bound state of Uttar Pradesh. Later today, Opposition parties plan on marching to Rashtrapati Bhavan at 12 pm to meet the President and register their protest against the government's demonetisation move. The house also failed to transact any business Thursday, again because of the standoff between the government and the Opposition over demonetisation, and the AgustaWestland scam. The government dared Congress President Sonia Gandhi Thursday to respond in Parliament to allegations against her party over the AgustaWestland scam, claiming the Opposition party is stalling both Houses as it has much to hide. From the other side, Rahul Gandhi had Wednesday alleged that he had detailed information about "personal corruption" by Prime Minister Narendra Modi which he wanted to present in the Lok Sabha but was not being allowed to do so by the PM. (A version of this article first appeared in DNA)

India: Rajya Sabha adjourned sine die, Parliament on verge of washout

The Bharatiya Janata Party Parliamentary meet was held on Friday morning in the Indian capital of New Delhi where Prime Minister Narendra Modi addressed party MLAs on the issue of cash crisis in the wake of demonetisation. Modi is expected to meet with a delegation of the opposition Congress, including Rahul Gandhi,shortly.

Gandhi,&nbsp;the vice-president of the Indian National Congress,&nbsp;had sought an appointment from PM Modi to present a list of demands of farmers that he apparently collected during his extensive tour of election-bound state of Uttar Pradesh.

Later today, Opposition parties plan on marching to Rashtrapati Bhavan at 12 pm to meet the President and register their protest against the government&#39;s demonetisation move.

With only one day left, the Winter Session of Parliament is on the verge of a washout as it failed to transact any business again Thursday due to the standoff between the government and Opposition over demonetisation, AgustaWestland scam and some other issues.

The government dared Congress President Sonia Gandhi on Thursday to respond in Parliament to allegations against her party over AgustaWestland scam, claiming that the opposition party is stalling both Houses as it has a lot to hide.

On the other side, Rahul Gandhi had on Wednesday alleged that he had detailed information about &quot;personal corruption&quot; by Prime Minister Narendra Modi which he wants to present in Lok Sabha but is not being allowed to do so by the PM.

&nbsp;

(This report first appeared in DNA)

Later today, Opposition parties plan on marching to Rashtrapati Bhavan at 12 pm to meet the President

The Bharatiya Janata Party Parliamentary meet was held on Friday morning in the Indian capital of New Delhi where Prime Minister Narendra Modi addressed party MLAs on the issue of cash crisis in the wake of demonetisation. Modi is expected to meet with a delegation of the opposition Congress, including Rahul Gandhi,shortly. Gandhi, the vice-president of the Indian National Congress, had sought an appointment from PM Modi to present a list of demands of farmers that he apparently collected during his extensive tour of election-bound state of Uttar Pradesh. Later today, Opposition parties plan on marching to Rashtrapati Bhavan at 12 pm to meet the President and register their protest against the government's demonetisation move. With only one day left, the Winter Session of Parliament is on the verge of a washout as it failed to transact any business again Thursday due to the standoff between the government and Opposition over demonetisation, AgustaWestland scam and some other issues. The government dared Congress President Sonia Gandhi on Thursday to respond in Parliament to allegations against her party over AgustaWestland scam, claiming that the opposition party is stalling both Houses as it has a lot to hide. On the other side, Rahul Gandhi had on Wednesday alleged that he had detailed information about "personal corruption" by Prime Minister Narendra Modi which he wants to present in Lok Sabha but is not being allowed to do so by the PM. (This report first appeared in DNA)

Demonetisation:  Indian Parliament's adjourned; parties must introspect on difference between dissent, disruption, says vice-president Hamid Ansari

Indian Prime Minister Narendra Modi on Friday said that Indira Gandhi rejected suggestions for demonetisation in 1971, saying she wanted to win elections.

Indira Gandhi sold out India by ignoring advice to demonetise, the prime minister said.

Implementation of demonetisation policy was required in 1971, but it was implemented now, Modi said, hitting out at the opposition during the ruling party&#39;s parliamentary meet. &quot;For the Congress, party is bigger than nation; but for us, the nation is above the party,&quot; he said.

Modi also thanked chief ministers of India&#39;s eastern states of Odisha and Bihar for supporting demonetisation.

Prime Minister Modi said that unlike earlier when opposition parties stalled House proceedings against scams, Congress-led parties are now doing so against government&#39;s steps to curb black money and corruption.

He pitched for a&nbsp;digital economy as he urged masses to adopt it as a &quot;way of life&quot; to rid the society of corruption and black money.

Modi also noted that the Wanchoo Committee in the&nbsp;early 70s had recommended demonetisation when Indira Gandhi was Prime Minister, recalling that the then senior Left leader Jyotirmoy Basu had demanded its quick implementation, parliamentary affairs minister Ananth Kumar told reporters following the meeting.

On a day that marks the anniversary of Bangladesh&#39;s liberation, Modi also targeted the opposition over its remarks on the army&#39;s surgical strikes.

The opposition in 1971-72 did not seek evidence of the army&#39;s valour unlike that of today, he said.

(WION with inputs from agencies)

Then prime minister Indira Gandhi sold the nation by not adopting demonetisation, Modi alleged

Indian Prime Minister Narendra Modi on Friday said that Indira Gandhi rejected suggestions for demonetisation in 1971, saying she wanted to win elections. Indira Gandhi sold out India by ignoring advice to demonetise, the prime minister said. Implementation of demonetisation policy was required in 1971, but it was implemented now, Modi said, hitting out at the opposition during the ruling party's parliamentary meet. "For the Congress, party is bigger than nation; but for us, the nation is above the party," he said. Modi also thanked chief ministers of India's eastern states of Odisha and Bihar for supporting demonetisation. Prime Minister Modi said that unlike earlier when opposition parties stalled House proceedings against scams, Congress-led parties are now doing so against government's steps to curb black money and corruption. He pitched for a digital economy as he urged masses to adopt it as a "way of life" to rid the society of corruption and black money. Modi also noted that the Wanchoo Committee in the early 70s had recommended demonetisation when Indira Gandhi was Prime Minister, recalling that the then senior Left leader Jyotirmoy Basu had demanded its quick implementation, parliamentary affairs minister Ananth Kumar told reporters following the meeting. On a day that marks the anniversary of Bangladesh's liberation, Modi also targeted the opposition over its remarks on the army's surgical strikes. The opposition in 1971-72 did not seek evidence of the army's valour unlike that of today, he said. (WION with inputs from agencies)

Demonetisation should have been done in 1971: Indian Prime Minister

Bracing for a showdown in Parliament, the BJP and Congress have instructed their members in both Houses to ensure their presence for the remainder of the Winter session which resumes today. The issue of demonetisation has cast a shadow on the winter session of Parliament with the opposition parties protesting the governments move to scrap high-value notes.

The Congress has issued the whip amid concerns in its ranks that the ruling side would rake up the AgustaWestland helicopter issue to target its top brass to &quot;divert attention from hardships faced by people due to demonetisation&quot;, sources in the party said.

Before Parliament reconvenes, leaders of Opposition parties will hold a meeting in the morning to decide their strategy in the House.

On its part, the ruling BJP also issued a whip to ensure that the treasury benches are in full strength in both the Lok Sabha and Rajya Sabha.

Prime Minister Narendra Modi will hold a meeting with key ministers before Parliament convenes this morning to decide their strategy.

Finance minister Arun Jaitley has urged the Congress and other opposition parties to start a debate on demonetisation.

Information and broadcasting minister Venkaiah Naidu said Prime Minister Narendra Modi will be present in Parliament for the three remaining days of the Session and can participate in proceedings for either of the House depending on the need.

Congress sources blamed the government, saying it has made no attempt to reach out to the Opposition to break the logjam.

Both the government and the Opposition, especially the Congress and Trinamool Congress, have stuck to their stand that the debate be held under a Rule that entails voting which the treasury benches have ruled out.

Last Friday, the Congress changed its stand and expressed readiness for a debate under &quot;no rule&quot;. &nbsp;

Pitching for a debate, finance minister Arun Jaitley urged the Congress and other opposition parties to &quot;rise above slogans...&quot; and participate constructively.

The winter session, which began on November 16, is scheduled to conclude on Friday, with indications that it could be a virtual washout.

Parliament has seen little transaction of any substantial business because of the Opposition ruckus over demonetisation and some other issues.

Both the Lok Sabha and the Rajya Sabha continued to be deadlocked over the way a debate should take place on demonetisation, which was announced by the Prime Minister on November 8.

Ever since the session began, the Lok Sabha has managed to conduct only two legislative actions -- passage of Income Tax amendment bill and approval of Supplementary Demand for Grants -- that too amid din and without much debate.

The Rajya Sabha has functioned normally only on the first day of the session when the debate on demonetisation was initiated and held for about 5 hours.

(PTI)

He is in Parliament; information minister Venkaiah Naidu had said he could participate in proceedings depending on need

Bracing for a showdown in Parliament, the BJP and Congress have instructed their members in both Houses to ensure their presence for the remainder of the Winter session which resumes today. The issue of demonetisation has cast a shadow on the winter session of Parliament with the opposition parties protesting the governments move to scrap high-value notes. The Congress has issued the whip amid concerns in its ranks that the ruling side would rake up the AgustaWestland helicopter issue to target its top brass to "divert attention from hardships faced by people due to demonetisation", sources in the party said. Before Parliament reconvenes, leaders of Opposition parties will hold a meeting in the morning to decide their strategy in the House. On its part, the ruling BJP also issued a whip to ensure that the treasury benches are in full strength in both the Lok Sabha and Rajya Sabha. Prime Minister Narendra Modi will hold a meeting with key ministers before Parliament convenes this morning to decide their strategy. Finance minister Arun Jaitley has urged the Congress and other opposition parties to start a debate on demonetisation. Information and broadcasting minister Venkaiah Naidu said Prime Minister Narendra Modi will be present in Parliament for the three remaining days of the Session and can participate in proceedings for either of the House depending on the need. Congress sources blamed the government, saying it has made no attempt to reach out to the Opposition to break the logjam. Both the government and the Opposition, especially the Congress and Trinamool Congress, have stuck to their stand that the debate be held under a Rule that entails voting which the treasury benches have ruled out. Last Friday, the Congress changed its stand and expressed readiness for a debate under "no rule". Pitching for a debate, finance minister Arun Jaitley urged the Congress and other opposition parties to "rise above slogans..." and participate constructively. The winter session, which began on November 16, is scheduled to conclude on Friday, with indications that it could be a virtual washout. Parliament has seen little transaction of any substantial business because of the Opposition ruckus over demonetisation and some other issues. Both the Lok Sabha and the Rajya Sabha continued to be deadlocked over the way a debate should take place on demonetisation, which was announced by the Prime Minister on November 8. Ever since the session began, the Lok Sabha has managed to conduct only two legislative actions -- passage of Income Tax amendment bill and approval of Supplementary Demand for Grants -- that too amid din and without much debate. The Rajya Sabha has functioned normally only on the first day of the session when the debate on demonetisation was initiated and held for about 5 hours. (PTI)

Demonetisation: Prime Minister Modi may speak in Parliament today

Indian defence forces and defence production would be &quot;open to scrutiny&quot; and &quot;control&quot; by the United States, which will make India its &quot;junior ally&quot; following finalisation of the &quot;Major Defense Partner&quot;&nbsp;designation, CPI(M) has alleged.

Noting that the US has placed the details of &quot;Major Defense Partner&quot;&nbsp;designation for Senate approval as part of FY 2017 National Defense Authorization Act (NDAA), the party said the Narendra Modi government &quot;has not even made a statement in Parliament about such a significant deal&quot;.

&quot;The country can see the US side of the deal by reading the 2017 NDAA, but remains ignorant of the Indian commitment as a &#39;Major Defense Partner&#39; of the United States,&quot; CPI(M) General Secretary Sitaram Yechury said.

In a letter to the Prime Minister, he referred to Paragraph (E) of Section 1292 of 2017 NDAA, &quot;which talks of &#39;mechanisms to verify the security of defense articles, defense services, and related technology, such as appropriate cyber security and end user monitoring agreements&#39; for items and technologies sold to India.

&quot;Paragraph (F) thereafter states that India will align its &#39;export control and procurement regimes with those of the United States&#39;.&quot; 
Yechury further said, &quot;Paragraph(I) of Section 1292, 2017 NDAA makes the facts amply clear. It explicitly highlights enhanced &#39;defense and security cooperation with India in order to advance United States interests in South Asia and greater Indo-Asia-Pacific regions&#39;.&quot;

&quot;This is, sadly, a commitment by your government to become a junior ally of the US in our own neighbourhood. This represents the final nail in the coffin of India&#39;s independent foreign policy,&quot; Yechury said in his letter to Modi. He said, &quot;These are significant concessions made by your government which will make Indian defence forces open to American scrutiny, and Indian defence production under the control of the United States of America.&quot;

&quot;Serious apprehensions arise about your government compromising India&#39;s sovereignty and strategic autonomy,&quot; the CPI(M) leader said, quoting the US statement as saying that the &quot;Major Defense Partner&quot;&nbsp;designation was &quot;a status unique to India&quot; and brings &quot;India to a level at par with that of the United States&#39; closest allies and partners&quot;.

&quot;This is a significant departure from India&#39;s long- standing policy on defence relations and it has been done without taking Parliament into confidence,&quot; Yechury said.

 
The finalisation of the &quot;Major Defense Partner&quot;&nbsp;designation to India by the US had followed the signing of the Logistics Exchange Memorandum of Agreement (LEMOA) between the US and Indian defence ministries earlier this year.

Yechury said, &quot;It is particularly galling that all these commitments, as part of the announcement of the &#39;Major Defense Partner&#39; designation, were made by the Defence Ministry when both Houses of Parliament were, and still are, in session.

&quot;This is in complete contravention of the established norms and practices of our parliamentary system,&quot; he said.

He said he was constrained to state that &quot;your government seems particularly keen on ignoring Parliament, because even the text of LEMOA has so far not been placed before either of the Houses or the Standing Committee on Defence.

&quot;It needs no reminder that Parliament represents the people of this great country and by choosing to willfully ignore Parliament, you are disrespecting 1.3 billion Indians,&quot; he said and demanded that full texts of these documents are tabled in Parliament during the ongoing session and made public immediately.

(PTI)

'This represents the final nail in the coffin of India's independent foreign policy,' CPI(M) general secretary Yechury wrote to PM Modi

Indian defence forces and defence production would be "open to scrutiny" and "control" by the United States, which will make India its "junior ally" following finalisation of the "Major Defense Partner" designation, CPI(M) has alleged. Noting that the US has placed the details of "Major Defense Partner" designation for Senate approval as part of FY 2017 National Defense Authorization Act (NDAA), the party said the Narendra Modi government "has not even made a statement in Parliament about such a significant deal". "The country can see the US side of the deal by reading the 2017 NDAA, but remains ignorant of the Indian commitment as a 'Major Defense Partner' of the United States," CPI(M) General Secretary Sitaram Yechury said. In a letter to the Prime Minister, he referred to Paragraph (E) of Section 1292 of 2017 NDAA, "which talks of 'mechanisms to verify the security of defense articles, defense services, and related technology, such as appropriate cyber security and end user monitoring agreements' for items and technologies sold to India. "Paragraph (F) thereafter states that India will align its 'export control and procurement regimes with those of the United States'." Yechury further said, "Paragraph(I) of Section 1292, 2017 NDAA makes the facts amply clear. It explicitly highlights enhanced 'defense and security cooperation with India in order to advance United States interests in South Asia and greater Indo-Asia-Pacific regions'." "This is, sadly, a commitment by your government to become a junior ally of the US in our own neighbourhood. This represents the final nail in the coffin of India's independent foreign policy," Yechury said in his letter to Modi. He said, "These are significant concessions made by your government which will make Indian defence forces open to American scrutiny, and Indian defence production under the control of the United States of America." "Serious apprehensions arise about your government compromising India's sovereignty and strategic autonomy," the CPI(M) leader said, quoting the US statement as saying that the "Major Defense Partner" designation was "a status unique to India" and brings "India to a level at par with that of the United States' closest allies and partners". "This is a significant departure from India's long- standing policy on defence relations and it has been done without taking Parliament into confidence," Yechury said. The finalisation of the "Major Defense Partner" designation to India by the US had followed the signing of the Logistics Exchange Memorandum of Agreement (LEMOA) between the US and Indian defence ministries earlier this year. Yechury said, "It is particularly galling that all these commitments, as part of the announcement of the 'Major Defense Partner' designation, were made by the Defence Ministry when both Houses of Parliament were, and still are, in session. "This is in complete contravention of the established norms and practices of our parliamentary system," he said. He said he was constrained to state that "your government seems particularly keen on ignoring Parliament, because even the text of LEMOA has so far not been placed before either of the Houses or the Standing Committee on Defence. "It needs no reminder that Parliament represents the people of this great country and by choosing to willfully ignore Parliament, you are disrespecting 1.3 billion Indians," he said and demanded that full texts of these documents are tabled in Parliament during the ongoing session and made public immediately. (PTI)

Indian defence forces to be 'Junior ally' of US, says Indian left party

Indian Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India&#39;s financial circles, to spearhead a radical move to abolish 86 per cent of the country&#39;s cash overnight and take aim at the huge shadow economy.

Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Modi&#39;s New Delhi residence, as he plotted his boldest reform since coming to power in 2014.

<div class="ui-state-default" contenteditable="false">
<div class="row">
<div class="article-blockquote">
<div class="col-sm-10 col-sm-offset-1 blockquote-content quoteshare">
<blockquote>
<h5>Immediately after Modi announced the demonetisation, Adhia tweeted: &#39;This is the biggest and the boldest step by the Government for containing black money&#39;</h5>
</blockquote>
</div>

<div class="col-sm-1 blockquote-content">
<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=Immediately after Modi announced the demonetisation, Adhia tweeted: 'This is the biggest and the boldest step by the Government for containing black money'" target="_blank">&nbsp;</a></div>
</div>
<a class="close-mark close-div" href="#" id="jqquoteclosemark">&times;</a></div>
</div>
</div>

When announced, the abolition of high-value banknotes of 500 and 1,000 rupees ($7.50 and $15) came as a bolt from the blue.

The secrecy was aimed at outflanking those who might profit from prior knowledge, by pouring cash into gold, property and other assets and hide illicit wealth.

Previously unreported details of Modi&#39;s handling of the so-called &quot;demonetisation&quot; open a window onto the hands-on role he played in implementing a key policy, and how he was willing to act quickly even when the risks were high.

While some advocates say the scrapping of the banknotes will bring more money into the banking system and raise tax revenues, millions of Indians are furious at having to queue for hours outside banks to exchange or deposit their old money.

Labourers have also been unpaid and produce has rotted in markets as cash stopped changing hands. Not enough replacement notes were printed in preparation for the upheaval, and it could take months for things to return to normal.

With India&#39;s most populous state, Uttar Pradesh, holding an election in early 2017 that could decide Modi&#39;s chances of a second term in office, there is little time for the hoped-for benefits of his cash swap to outweigh short-term pain.

Modi has staked his reputation and popularity on the move.

&quot;I have done all the research and, if it fails, then I am to blame,&quot; Modi told a cabinet meeting on Nov. 8 shortly before the move was announced, according to three ministers who attended.

Direct line to Modi

Overseeing the campaign, with support from the backroom team camped out at Modi&#39;s sprawling bungalow in the capital, was Adhia, a top finance ministry official.

The 58-year-old served as principal secretary to Modi from 2003-06 when he was chief minister of Gujarat state, establishing a relationship of trust with his boss and introducing him to yoga.

Colleagues interviewed by Reuters said he had a reputation for integrity and discretion.

Adhia was named revenue secretary in Sept. 2015, reporting formally to finance minister Arun Jaitley. In reality, he had a direct line to Modi and they would speak in their native Gujarati when they met to discuss issues in depth.

In the world&#39;s largest democracy the demonetisation was revolutionary: it called into question the state&#39;s promise to &quot;pay the bearer&quot; the face value on every banknote.

At a stroke, Modi scrapped money worth 15.4 trillion rupees ($220 billion), equal to 86 per cent of cash in Asia&#39;s third-largest economy.

The idea is backed by some economists, although the speed of its implementation is widely seen as radical.

&quot;One is never ready for this kind of disruption, but it is a constructive disruption,&quot; said Narendra Jadhav, a 31-year veteran and former chief economist of India&#39;s central bank who now represents Modi&#39;s party in the upper house of parliament.

Modi, in his TV address to the nation, cautioned that people could face temporary hardship as replacement 500 and 2,000 rupee notes were introduced. Calling for an act of collective sacrifice, he promised steps to soften the blow for the nine in 10 Indians who live in the cash economy.

&quot;Biggest, boldest step&rdquo;

Immediately after the address, Adhia sent a tweet: &quot;This is the biggest and the boldest step by the Government for containing black money.&quot;

The boast harked back to Modi&#39;s election vow to recover black money from abroad that had resonated with voters fed up with the corruption scandals that plagued the last Congress government. Yet in office, he struggled to keep his promise.

Over more than a year, Modi commissioned research from officials at the finance ministry, the central bank and think-tanks on how to advance his fight against black money, a close aide said.

He demanded answers to questions such as: How quickly India could print new banknotes; how to distribute them; would state banks benefit if they received a rush of new deposits; and who would gain from demonetisation?

The topics were broken up to prevent anyone from joining the dots and concluding that a cash swap was in the offing.

&quot;We didn&#39;t want to let the cat out of the bag,&quot; said a senior official directly involved. &quot;Had people got a whiff of the decision, the whole exercise would have been meaningless.&quot;

Under Adhia&#39;s oversight, the team of researchers assembled and modeled the findings in what was, for it, a theoretical exercise.

It was made up of young experts in data and financial analysis; some ran Modi&#39;s social media accounts and a smartphone app that he used to solicit public feedback.

Yet for all the planning, Modi and Adhia knew they could not foresee every eventuality, and were willing to move swiftly.

The announcement caused chaos, with huge queues forming at banks when they reopened after a short holiday.

New 2,000 rupee notes were hard to come by and barely any new 500 rupee notes had been printed. India&#39;s 200,000 cash dispensers could not handle the new, smaller, notes and it would take weeks to reconfigure them.

Filling ATMs with the 8 trillion rupees ($117 billion) in new banknotes that the finance ministry reckons are needed to restore liquidity to the economy is even trickier.

In a best-case scenario, in which India&#39;s four banknote presses churned out new 500 and 2,000 rupee notes designed to replace the abolished ones, it would take at least three months to hit that target.

Secrecy paramount

Secrecy was paramount, but clues had been left.

Back in April, analysts at State Bank of India said that demonetisation of large-denomination notes was possible.

The Reserve Bank of India, the central bank, also disclosed in May that it was making preparations for a new series of banknotes that were confirmed in August when it announced it had approved a design for a new 2,000 rupee note.

The printing presses had only just started turning when the media finally started to run with the story in late October.

&quot;The plan was to introduce it around November 18, but there was a clear sign that it could get leaked,&quot; said one person with direct knowledge who, like others interviewed by Reuters, asked not to be named due to the sensitivity of the matter.

Some officials in the finance ministry had expressed doubts about scrapping high-value notes when the idea came up for discussion. They now feel resentment at the secrecy in which Adhia rammed through the plan on Modi&#39;s orders.

They also say the plan was flawed because of a failure to ramp up printing of new notes ahead of time.

Other critics say the Adhia team fell prey to a form of &quot;groupthink&quot; that ignored outside advice.

In the words of one former top official who has worked at the finance ministry and central bank: &quot;They don&#39;t know what&#39;s happening in the real world.&quot;

(Reuters)

The team, backed up by a young crew of researchers working out of PM Modi's home, was led by financial services secretary Hasmukh Adhia

Indian Prime Minister Narendra Modi handpicked a trusted bureaucrat, little known outside India's financial circles, to spearhead a radical move to abolish 86 per cent of the country's cash overnight and take aim at the huge shadow economy. Hasmukh Adhia, the bureaucrat, and five others privy to the plan were sworn to utmost secrecy, say sources with knowledge of the matter. They were supported by a young team of researchers working in two rooms at Modi's New Delhi residence, as he plotted his boldest reform since coming to power in 2014. Immediately after Modi announced the demonetisation, Adhia tweeted: 'This is the biggest and the boldest step by the Government for containing black money' × When announced, the abolition of high-value banknotes of 500 and 1,000 rupees ($7.50 and $15) came as a bolt from the blue. The secrecy was aimed at outflanking those who might profit from prior knowledge, by pouring cash into gold, property and other assets and hide illicit wealth. Previously unreported details of Modi's handling of the so-called "demonetisation" open a window onto the hands-on role he played in implementing a key policy, and how he was willing to act quickly even when the risks were high. While some advocates say the scrapping of the banknotes will bring more money into the banking system and raise tax revenues, millions of Indians are furious at having to queue for hours outside banks to exchange or deposit their old money. Labourers have also been unpaid and produce has rotted in markets as cash stopped changing hands. Not enough replacement notes were printed in preparation for the upheaval, and it could take months for things to return to normal. With India's most populous state, Uttar Pradesh, holding an election in early 2017 that could decide Modi's chances of a second term in office, there is little time for the hoped-for benefits of his cash swap to outweigh short-term pain. Modi has staked his reputation and popularity on the move. "I have done all the research and, if it fails, then I am to blame," Modi told a cabinet meeting on Nov. 8 shortly before the move was announced, according to three ministers who attended. Direct line to Modi Overseeing the campaign, with support from the backroom team camped out at Modi's sprawling bungalow in the capital, was Adhia, a top finance ministry official. The 58-year-old served as principal secretary to Modi from 2003-06 when he was chief minister of Gujarat state, establishing a relationship of trust with his boss and introducing him to yoga. Colleagues interviewed by Reuters said he had a reputation for integrity and discretion. Adhia was named revenue secretary in Sept. 2015, reporting formally to finance minister Arun Jaitley. In reality, he had a direct line to Modi and they would speak in their native Gujarati when they met to discuss issues in depth. In the world's largest democracy the demonetisation was revolutionary: it called into question the state's promise to "pay the bearer" the face value on every banknote. At a stroke, Modi scrapped money worth 15.4 trillion rupees ($220 billion), equal to 86 per cent of cash in Asia's third-largest economy. The idea is backed by some economists, although the speed of its implementation is widely seen as radical. "One is never ready for this kind of disruption, but it is a constructive disruption," said Narendra Jadhav, a 31-year veteran and former chief economist of India's central bank who now represents Modi's party in the upper house of parliament. Modi, in his TV address to the nation, cautioned that people could face temporary hardship as replacement 500 and 2,000 rupee notes were introduced. Calling for an act of collective sacrifice, he promised steps to soften the blow for the nine in 10 Indians who live in the cash economy. "Biggest, boldest step” Immediately after the address, Adhia sent a tweet: "This is the biggest and the boldest step by the Government for containing black money." The boast harked back to Modi's election vow to recover black money from abroad that had resonated with voters fed up with the corruption scandals that plagued the last Congress government. Yet in office, he struggled to keep his promise. Over more than a year, Modi commissioned research from officials at the finance ministry, the central bank and think-tanks on how to advance his fight against black money, a close aide said. He demanded answers to questions such as: How quickly India could print new banknotes; how to distribute them; would state banks benefit if they received a rush of new deposits; and who would gain from demonetisation? The topics were broken up to prevent anyone from joining the dots and concluding that a cash swap was in the offing. "We didn't want to let the cat out of the bag," said a senior official directly involved. "Had people got a whiff of the decision, the whole exercise would have been meaningless." Under Adhia's oversight, the team of researchers assembled and modeled the findings in what was, for it, a theoretical exercise. It was made up of young experts in data and financial analysis; some ran Modi's social media accounts and a smartphone app that he used to solicit public feedback. Yet for all the planning, Modi and Adhia knew they could not foresee every eventuality, and were willing to move swiftly. The announcement caused chaos, with huge queues forming at banks when they reopened after a short holiday. New 2,000 rupee notes were hard to come by and barely any new 500 rupee notes had been printed. India's 200,000 cash dispensers could not handle the new, smaller, notes and it would take weeks to reconfigure them. Filling ATMs with the 8 trillion rupees ($117 billion) in new banknotes that the finance ministry reckons are needed to restore liquidity to the economy is even trickier. In a best-case scenario, in which India's four banknote presses churned out new 500 and 2,000 rupee notes designed to replace the abolished ones, it would take at least three months to hit that target. Secrecy paramount Secrecy was paramount, but clues had been left. Back in April, analysts at State Bank of India said that demonetisation of large-denomination notes was possible. The Reserve Bank of India, the central bank, also disclosed in May that it was making preparations for a new series of banknotes that were confirmed in August when it announced it had approved a design for a new 2,000 rupee note. The printing presses had only just started turning when the media finally started to run with the story in late October. "The plan was to introduce it around November 18, but there was a clear sign that it could get leaked," said one person with direct knowledge who, like others interviewed by Reuters, asked not to be named due to the sensitivity of the matter. Some officials in the finance ministry had expressed doubts about scrapping high-value notes when the idea came up for discussion. They now feel resentment at the secrecy in which Adhia rammed through the plan on Modi's orders. They also say the plan was flawed because of a failure to ramp up printing of new notes ahead of time. Other critics say the Adhia team fell prey to a form of "groupthink" that ignored outside advice. In the words of one former top official who has worked at the finance ministry and central bank: "They don't know what's happening in the real world." (Reuters)

Demonetisation: Team of 6, sworn to secrecy, was behind move

On November 8, the Indian government demonetised -- it&nbsp;withdrew from circulation notes of Rs 500 and Rs 1,000 (worth around $7&nbsp;and $15&nbsp;respectively) to crack down on &quot;black money&quot;,&nbsp;or undeclared&nbsp;cash.

The Indian public were given until December 31, or 52 days, to exchange these notes at banks.

So, what&rsquo;s been happening to these notes?

<div class="ui-state-default" contenteditable="false"><img alt="" draggable="false" src="http://wion.azureedge.net/photos/tracking%20demonetisation_infographics_revised-20161209031318.jpg" />
<div class="media-description">
Tracking demonetisation (WION)
</div>
<a class="close-mark close-div" href="javascript:void(0)" id="jqclosemark">&times;</a></div>

(WION)

What's happened to the Indian Rs 500 and Rs 1000 bank notes since demonetisation started?

On November 8, the Indian government demonetised -- it withdrew from circulation notes of Rs 500 and Rs 1,000 (worth around $7 and $15 respectively) to crack down on "black money", or undeclared cash. The Indian public were given until December 31, or 52 days, to exchange these notes at banks. So, what’s been happening to these notes? Tracking demonetisation (WION) × (WION)

Infographic: Tracking demonetisation

The Indian government will waive service tax for debit or credit card payments&nbsp;up to Rs 2,000. Any payment made by cash will not be exempt from the service tax, which at the moment is&nbsp;15 per cent&nbsp;for such transactions.

India&#39;s finance minister Arun Jaitley will table a notification in the parliament today

This comes exactly a month after Prime Minister Narendra Modi made a sudden announcement that Rs 500 and Rs 1,000 banknotes would be illegal after December 30.

The government said they wanted to tackle the black money menace and encourage the economy to turn digital.

Earlier, the Reserve Bank of India -- the country&#39;s central banking institution -- allowed people to keep Rs 20,000 in their digital wallets, up from the earlier limit of Rs 10,000.&nbsp;

Meanwhile, the Reserve Bank of India -- the country&#39;s central banking institution -- said 75 per cent of the old banknotes worth $170 billion have been returned till December 7.

(WION)

&nbsp;

Currently, people pay 15% service tax on every card transaction. Cash purchases are not exempt from the tax

The Indian government will waive service tax for debit or credit card payments up to Rs 2,000. Any payment made by cash will not be exempt from the service tax, which at the moment is 15 per cent for such transactions. India's finance minister Arun Jaitley will table a notification in the parliament today This comes exactly a month after Prime Minister Narendra Modi made a sudden announcement that Rs 500 and Rs 1,000 banknotes would be illegal after December 30. The government said they wanted to tackle the black money menace and encourage the economy to turn digital. Earlier, the Reserve Bank of India -- the country's central banking institution -- allowed people to keep Rs 20,000 in their digital wallets, up from the earlier limit of Rs 10,000. Meanwhile, the Reserve Bank of India -- the country's central banking institution -- said 75 per cent of the old banknotes worth $170 billion have been returned till December 7. (WION)

Demonetisation: No service tax on card payments up to Rs 2,000

A month after the demonetisation decision, people across the metropolis and adjoining areas are still struggling to lay hands on cash, adversely affecting their monthly payments and businesses.

The main reason behind these hardships, according to people PTI spoke to, are the dysfunctional ATMs that continue to remain dry even a month after the government scrapped notes of Rs 500 and Rs 1000 on November 8.

&quot;Prime Minister Narendra Modi is appealing to everyone to adopt cashless methods to make small or big deals. Going by this, why do we need so many ATMs across the country? Uproot them. These are not useful anyway. These ATMs have gone cashless,&quot; said an irked Kalpesh Jain, a cloth trader in suburban Ghatkopar here.

Even this morning, Mumbaikars and people living on the city outskirts were seen queueing up outside banks and ATMs to meet their monthly payments. Many were upset about banks also refusing payments to customers due to cash shortage.

Waris Sheikh, a professional working in Lower Parel area said, &quot;Since last two days, a bank branch in the Kamla Mill compound has stopped giving cash. There is a board outside the office saying we are taking deposits only.&quot;

A homemaker from neighbouring Thane district, Vimala Tripathi, who also sounded frustrated, said, &quot;One month has gone by but there has been no significant improvement in the circulation of money. We still have to stand in long queues in banks and ATMs where there is no cash.&quot;

Another homemaker, Sunita from suburban Bhayandar, said, &quot;The latest gift by the government is the Rs 2000 note which cannot be used to buy milk, bread, fruits or vegetables. One month&#39;s time was enough to wipe out the shortage of lower denomination notes in the market&quot;.

Traders also complained that their business has suffered by over 40 to 50 per cent as demonetisation has badly hit the purchasing power of the people, even as the&nbsp;government continues to make a push for cashless options.

A restaurant owner in Ghatkopar said, &quot;Unfortunately, people have not been so enthusiastic to pay by Paytm or Freecharge or whatever. Many of them come at my restaurant with a Rs 2000 note, whom we have to turn away.&quot;

However, there are some who are still hopeful that all these troubles would end soon as promised by Modi who had urged people to cooperate with the government till December 31.

&quot;Modiji had sought 50 days, and now 30 days have passed. We should give him 20 more days and hopefully wait for the situation to improve. But the sad part is that even after 30 days there is hardly any improvement,&quot; a tea-seller from suburban Andheri said.

(PTI)

The main reason behind the cash shortage are the dysfunctional ATMs that continue to remain dry

A month after the demonetisation decision, people across the metropolis and adjoining areas are still struggling to lay hands on cash, adversely affecting their monthly payments and businesses. The main reason behind these hardships, according to people PTI spoke to, are the dysfunctional ATMs that continue to remain dry even a month after the government scrapped notes of Rs 500 and Rs 1000 on November 8. "Prime Minister Narendra Modi is appealing to everyone to adopt cashless methods to make small or big deals. Going by this, why do we need so many ATMs across the country? Uproot them. These are not useful anyway. These ATMs have gone cashless," said an irked Kalpesh Jain, a cloth trader in suburban Ghatkopar here. Even this morning, Mumbaikars and people living on the city outskirts were seen queueing up outside banks and ATMs to meet their monthly payments. Many were upset about banks also refusing payments to customers due to cash shortage. Waris Sheikh, a professional working in Lower Parel area said, "Since last two days, a bank branch in the Kamla Mill compound has stopped giving cash. There is a board outside the office saying we are taking deposits only." A homemaker from neighbouring Thane district, Vimala Tripathi, who also sounded frustrated, said, "One month has gone by but there has been no significant improvement in the circulation of money. We still have to stand in long queues in banks and ATMs where there is no cash." Another homemaker, Sunita from suburban Bhayandar, said, "The latest gift by the government is the Rs 2000 note which cannot be used to buy milk, bread, fruits or vegetables. One month's time was enough to wipe out the shortage of lower denomination notes in the market". Traders also complained that their business has suffered by over 40 to 50 per cent as demonetisation has badly hit the purchasing power of the people, even as the government continues to make a push for cashless options. A restaurant owner in Ghatkopar said, "Unfortunately, people have not been so enthusiastic to pay by Paytm or Freecharge or whatever. Many of them come at my restaurant with a Rs 2000 note, whom we have to turn away." However, there are some who are still hopeful that all these troubles would end soon as promised by Modi who had urged people to cooperate with the government till December 31. "Modiji had sought 50 days, and now 30 days have passed. We should give him 20 more days and hopefully wait for the situation to improve. But the sad part is that even after 30 days there is hardly any improvement," a tea-seller from suburban Andheri said. (PTI)

Demonetisation: 30 days on, cash crunch still continues

modi

Modi, News on Modi, stories on Modi, articles on Modi, Modi stories at Wion, Modi news, Modi latest news