09 Nov. 2016: 08 Safar 1438: Vol: 8, No:31
INDIA
Need to fill form
to give back your old Rs 500, Rs 1000 notes: All Details
New Delhi:Prime
Minister Narendra Modi on Tuesday shook the nation with his announcement of
demonetising high value currency notes. Soon after all Rs 500 and Rs 1000 notes
in circulation were “just paper with no value”, people across the country
started queuing outside ATMs in panic. Even as the PM asked people to not
panic, minutes after the announcement that notes were effectively invalid from
midnight, people thronged their nearest ATMs.With an announcement that banks
will be equipped to exchange people’s money by Friday, the government on
Wednesday released the form that will be used to exchange the old notes of Rs
500 and Rs 1000 denomination. The ‘request slip’ will need you to produce a valid
government-issued identity card, the name of your bank and branch.With an
announcement that banks will be equipped to exchange people’s money by Friday,
the government on Wednesday released the form that will be used to exchange the
old notes of Rs 500 and Rs 1000 denomination. The ‘request slip’ will need you
to produce a valid government-issued identity card, the name of your bank and
branch.There are no restrictions on card payment, cheque, demand draft,
electronic funds transfer. However, there is a limit on daily and weekly
withdrawals. ATM withdrawals will be restricted to Rs 2000 per day and
withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000
a week.indian express
Rs 500, Rs 1,000
banned: Black money hunt is fine but what about political parties, religious
trusts?
Prime Minister
Narendra Modi announced the demonetisation of Rs 1,000 and Rs 500 currency
notes with effect from 12 am, 9 Nov.2016, practically giving no one any notice
or clue of the impending move. While the economy grew by 30 percent between
2011 and 2016 and currency notes in circulation rose by 40 percent, the
circulation of Rs 500 currency notes grew by 76 percent and Rs 1,000 notes by
109 percent said Economic Affairs Secretary Shaktikanta Das — a clear evidence
if one were required of fake currencies being introduced into the system by
terrorist outfits and countries inimical to India.While the move
should send fear down the spines of people with unaccounted cash and halt the
counterfeit producers of these denominations in their tracks at least for the
time being, it would not affect those who have been parking their black money
in real estate and gold, the two assets that have been defying crackdown. They
would look askance at their brethren who innocently piled up unaccounted cash.
Banks would witness
a surge of deposits of cash in these denominations from 10 November to 30
December the time given for one to do so. One can count upon honest people to
avail of this facility because crooks would fear inconvenient questions
especially if the deposit is large or in steady trickles.
Crooks especially
the well-heeled moneybags would seek the sanctuary of political parties
registered with the Election Commission of India because they (political parties)
enjoy an immunity which no one does — no need to account for small donations
i.e. Rs 20,000 and less. How convenient! Political parties might oblige their
patrons — accept donations or pretended donations from them in these
denominations which in turn can be disgorged by the political parties in bank
counters or accounts without any fear of being challenged by the taxman to whom
the smug reply would be they were small donations, period. The pretended or
sham donations can be gotten back through several means duly camouflaged as
regular transactions by the political parties playing footsie with the crooks.
One wishes the Prime Minister had in his speech simultaneously announced the
wrenching away of the small donation alibi from political parties.
Ditto for religious
trusts that are chock-a-block in this country. Religious trusts too do not fear
the taxman because their income is exempt from tax. Dubious religious trusts
have been helping crooks launder their black money. This time round too they may
play the handmaiden role by accepting the disagreeable currency notes and
presenting themselves before the bank counters or depositing them into their
bank accounts.
Crooks might also
use the exchange counters open from the 10 November 2016 till 25 November 2016
to the hilt. Banks would be opening these counters, and one can exchange the
demonetised notes in favour of those that are legal tender. The limit is Rs
4,000 per person subject to production of identity proof. The limit of Rs 4,000
might make them run errands to several banks spanning the entire fortnight
during which the facility is available. But so what? Aren’t they indefatigable?
To fool the CCTV cameras, they might not expose the same person to the same
branch again and again!
Industrialists might
also be tempted to rope in their fawning and obliging employees. Each one might
be handed over a tidy sum that does not arouse any suspicion so that she may
deposit it into her bank account before 30 December 2016. She dare not
appropriate it as her own because employers know how to get the money back
later on in currencies that are legal tender. The beauty of splitting of
income, as well as stash of prohibited currency notes among several people, is
they pass muster by their sheer smallness.
All in all, the
move is a good one especially because it is both a frontal attack against black
money as well as counterfeit money. The USA routinely demonises currency notes
and brings newer versions with different watermarks and designs. That is
precisely what the RBI has promised to do with the new Rs 500 and Rs 2,000
notes.
Are banks equipped
to replace 2,300 crore pieces of Rs 500 and Rs 1,000 notes?
PM Narendra Modi’s
announcement to disallow use of existing Rs 500 and Rs 1,000 notes from this
midnight caught everyone by surprise.Here’s some quick numbers on the
implications of this move.According to RBI data, the total outstanding currency
in circulation in the Indian economy as on Oct.28 stood at Rs 17.77 lakh crore.
We don’t know how much of this comprises Rs 500 and Rs 1,000 notes. But an
indicator of what it could be can be seen from the RBI’s latest Annual Report.
This data shows that out of the total Rs 16.42 lakh crore value of bank notes
in circulation as on March 31, 2016, as much as Rs 14.18 lakh crore, ie over 86
per cent, consisted of Rs 500 and Rs 1,000 notes. In terms of volumes, out of
the total 9026.6 crore banknote pieces, 2,203 crore or 24 per cent-plus were of
Rs 500 and Rs 1,000 denomination.Simply put, the de-monetisation of Rs 500 and
Rs 1,000 notes, which is what Prime Minister Narendra Modi has announced will
happen from Tuesday night, would mean more than Rs 15 lakh crore worth of
high-value legal tender being withdrawn from circulation. It is likely that the
bulk of this would simply be deposited by people in banks rather than be
exchanged for lower denomination notes: Outright replacement of 2,300 crore
banknote pieces will be an obvious logistical nightmare. indian express
Decision to abolish
Rs 500, 1000 notes ‘Heartless’ and ‘draconian’: Mamata
New Delhi:Calling
it ‘draconian’ West Bengal Chief Minister Mamata Banerjee on Tuesday said that
Modi government’s decision to abolish Rs 500 and Rs 1000 notes will be a huge
blow to the Indian middle class. “Heartless and ill-conceived blow to the
common people and the middle class in the fake name of anti-corruption.
Withdraw this draconian decision,” Mamata Banerjee was quoted as saying by news
agency ANI.ANI
Withdraw this
draconian decision, tweets Mamata. Kejriwal retweets
PM Modi scraps Rs
500, Rs 1000 currency notes starting midnight Nov.8
Rs 2000 note comes
with micro Nano GPS chip, to track exact location of currency: Reports
New Delhi: In what
could be a major blow to black money hoarders, the new Rs 2000 note that was
unveiled by the Reserve Bank of India on Tuesday comes with a micro Nano GPS
chip that can help track the exact location of the note via a satellite.With
the PM Narendra Modi scrapping the Rs 500, Rs 1000 notes on Tuesday in a move
to fight against black money, RBI unveiled the new Rs 500 and Rs 2000 notes to
replace them.Now, the interesting thing is, as per reports, the new Rs 2000
notes are embedded with a micro Nano GPS chip which will help locate the
position of the currency via a satellite.The first of its kind and definitely a
major blow to black money hoarders, the GSP chip will act as a tracker and help
locate the exact location of the currency via a satellite.According to reports,
the chip has been fitted in such a way that it can detect Rs 2000 notes even
from 120 meters below the ground.
Rs 500 and Rs 1,000
notes pulled out of circulation immediately: PM Narendra Modi
Why Modi is taking
away your Rs 500 and Rs 1,000 notes
Deposits of old Rs
500, Rs 1000 notes in banks not to enjoy tax immunity: Jaitley
New Delhi:Finance
Minister Arun Jaitley on Wednesday said deposits of now-defunct old Rs 500 and
Rs 1,000 currency notes in bank accounts will not enjoy immunity from tax and
the land of law will apply on source of such money. A day after the government
announced the withdrawal of Rs 500 and Rs 1,000 banknotes in the country’s
biggest crackdown against black money, corruption and counterfeit currency,
Jaitley said old higher-denomination currency notes have to be deposited in
bank accounts to get newer or smaller denomination currencies.PTI
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