Thursday, 8 December 2016

Post Demonetization: Month End Account


            Finance Minister Arun Jaitley’s said ‘The issue should be looked at from the long-term impact that is going to have on the Indian economy’.  The shortage of new currency had to be substituted through digital means, he reiterated.  As per the assessment of Jaitley, two to three months will be required to streamline the economy.  The Reserve Bank of India (RBI) has not changed the repo rate at 6.25 per cent due to uncertain global and local factors.  Now the RBI growth projection for the financial year 2017 is 7.1 per cent as against 7.6 per cent as ascribed earlier.  As per the record, Rs 3.81 lakh crore new currency notes of different denomination is in circulation from the date of proclamation of the economic reforms.
 
Repercussion of demonetization policy is buzzing in state assemblies.  The District Central Co-operative Banks had widespread network in many states and are not allowed to deposit old currency by the RBI.  All co-operative banks are controlled by politicians.  Precautionary measures were taken by RBI in view of fear of parking unaccounted money.  Mr Fadnavis Chief Minister of Maharashtra state along with opposition leaders associated with these banks visited Delhi to meet higher ups regarding permission to deposit old notes in co-operative banks.  Politicians are always of same tribe barring few.  In Maharashtra state assembly, Mr Prithviraj Chavan Ex Chief Minister has asked a valid question on floor of the house.  ‘Rs 62 lack cash was recovered from the house of Arun Jaitley.  What was the cash doing in the finance minister’s residence?’ he questioned.  Shiv Sena, the alliance partner of ruling party, the unsatisfied soul, is raising different issues from the day one.  Congress party is expressing anguish in Madhya Pradesh State Assembly.  They are squarely blaming Mr Narendra Modi as farmers and daily wagers are facing lot of difficulties.
     
L. K. Advani senior BJP leader and parliamentarian disgruntled about din in parliament and for which Lok Sabha Speaker and Parliamentary Affairs Minister hold accountable.  He asked who is running the house and Why not sine-die the house when Lok Sabha was often adjourned.  ‘Number one liar is the BJP party’, said Samajvadi Party leader Mulayam Singh Yadav at public meeting in Bareilly Uttar Pradesh.  He rebuked the government by saying ‘entire black money is in the hands of hundred families of the country and one among them is PM’s friend.  The people will give befitting reply to BJP in ensuing election’.  Shiv Sena President Uddhav Thackarey met Home Minister Rajnath Singh and expressed displeasure about the way the policy is being handled.  Thackarey is likely to meet Finance Minister and Prime Minister soon and will discuss regarding hardship people are facing.
 
 The Enforcement Directorate (ED) is keeping a watch over the bank transactions of 50 branches to detect money laundering and hawala dealing.  Along with bank auditors the ED has swooped 50 branches of 10 public and private banks across the country.  They are scrutinizing each and every transaction of all types of account wherever they are getting important intelligence input from different agencies.  Ledger books, cash books and other relevant material are under random scrutiny.  Accounts associated with petrol pump owners, students, hawala racketeers, jan Dhan and dormant account where disproportionate amount is deposited is under scanner of government agencies.

 President of India stated that ‘the Parliament is meant for legislative business and not for disruption’.  PM Modi while addressing BJP parliamentarian stated that ‘in a democracy, janshakti should be above rajshakti’.  He urged the members to create awareness for digitization and cashless economy among masses.  The ruling party is denouncing opposition for not allowing Parliament to function legislative business.  Contrarily, the opposition parties are squarely censuring ruling party for a spoiled broth.  Opposition parties are observing completion of a month of demonetization policy as ‘black day’.  Rahul Gandhi has sarcastically described ‘PayTM cashless facility’ as ‘pay to Prime Minister amenity’.  Congress party, Trinamool congress and few small parties are stalling the proceedings of both the houses and holding dharna in front of Gandhi statue in Parliament with black badges.  Many important bills are pending in both the houses for discussion and legislative approval.

Nandan Nilekani former Chairman of the Unique Identification Authority of India said ‘the fact is that we have had a shock given to the currency system and, in my view, this will boost digital economy’.  The companies associated with e-payment are doing grossly business.  They are receiving orders from semi-urban areas; inquiries are coming from sundry business outlets like cycle shops, cane juice seller, temples, tea and pan vender, daily needs center, etc.  By digitization the transaction will be accountable.  Large number of section of society will be in tax net thereby surge in direct and indirect tax collection. ‘Digital acceleration needs strong internet connectivity’ Chairman of the Telecom Regulatory Authority of India said.


           

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