Finance ministry has waved off
service tax for e-transaction below Rs 2,000 as the first step in the direction
of cashless economy. To boost up the
cash less economy the government affirmed discount offer on purchase of petrol
and diesel (0.75 per cent), monthly or seasonal railway tickets (0.5 per cent),
railway accidental insurance cover up (Rs 10 lakh), railway catering,
accommodation, retiring room services (5 per cent), buying insurance policy
from PSU companies (8 – 10 per cent) and toll plaza (10 per cent). ‘The Government wants to increase the pace of
this switch over’ Finance Minister said. The
ministry will provide two lakh Point of Sale (PoS) machine to villages free of
cost; and Kisan Credit Cards holder will be provided with Rupee Kisan Card for
digital transactions. Paradigm shift was
noticed at petrol pumps; Rs 360 crore (40% of total) transaction per day is
through digital mode. The ministry is
deploying PoS machines at those places where rural masses do cash transact. The
e-payment will reduce down burden on cash transaction on Rs 2 lakh crore in
petrol and diesel and Rs 3,000 crore on railway. A major section of society (58%) is utilizing
railway’s e-ticket facility.
On 30th demonetization
day the government agencies have seized more than Rs hundred crore old and new
currency notes and gold bars costing more than Rs 100 crore. Names of politicians, businessmen and actors
are surfaced in print and TV media.
AIDMK leader and businessman Shekar Reddy, TV actor Rahul Chelani, bank
officials, contractors, middlemen and many more are detained and questioned
about its source. Bank account of
hundreds of Mumbai residents has been allegedly used paying 15%
commission. Rs 30 lakh has already been
recovered from the person who has deposited the amount. The businessman, agent, sub-agent, account
holders and many more are under IT scanner.
Prime Minister of India said ‘yagna
against corruption, terrorism and black money will empower the poor people and
benefit coming generations’. He tweeted
that the short term pain will pave way for long term gain. While commenting on PM move none other than
Congress Vice President Rahul Gandhi said that ‘the bold decision can be a
foolish decision’. He said more than
hundred people died due to single handedly autocratic decision and PM is
changing narratives again and again. ‘The
centre has turned into a salesman trying to sale plastic cards. PM has no moral right to continue and must
resign. People must have hassle-free accesses
to their own money. Who is responsible
for death of 90 people’ Manta Banerjee Chief Minister of West Bangal said. Lalu Prasad Yadav RJD chief asked if no
change is observed after 50 days, will PM tender his resignation. Shiv Sena Chief is going to spell their stand
after 50 days period. The party is
neither opposing nor welcoming the move; however want reprieve to common man
soon.
In Parliament, the opposition party
wants discussion without any condition, whereas the ruling party is demanding
apology from opposition for stalling the proceedings for 16 days. It seems the whole session will be washed out
without any discussion. ‘Responsibility
of running the house is that of government and speaker’ Rahul said. When Congress was in power it has not taken
single step against black money, said Finance Minister. Rajya Sabha Chairman Hamid Ansari rebuked the
treasury benches for disrupting the proceedings. ‘How can the treasury benches be agitating?’ asked
Ansari. The demonetization policy has
given abrupt shock and surprise to the people, has been referred as Tsunami by
economist Lord Meghnad Desai.
The ministry of external affairs is
in contact with finance ministry to resolve monetary issues of some of the
embassies facing cash crunch. The
assurance for smooth functioning was given to the Dean of Diplomatic Corps
Frank Hans Dannenberg Castellanos who represents the voices of 157 foreign
missions. He sought the PM intervention
and said the present situation is the serious breach of Vienna Convention.
Mr Devara serving IAS officer and
former Secretary, Department of Cooperation, Maharashtra State studied the role
of co-operative banks in the context of socio-economic development of a
farmer. His findings are the eye opener
for the policy makers. The scheduled
commercial banks in India have 1.33 lakh branches and 2.2 lakh ATMs spread over
metros, medium and small cities and towns.
While, the post office has 1.55 lakh branches across the country. There are about 370 district cooperative
banks with 14 thousand branches; also 93 thousand primary agriculture credit
societies. The society and co-operative
bank is spread over Maharashtra, Karnataka, Kerala, Tamil Nadu and Gujarat. There network is rural based. The
RBI has not allowed them to exchange old notes with new one. It has affected routine functioning of banks
that are catering the daily needs of the farmers. Primary survey indicated that it has untoward
effect on harvest during kharif and sowing during rabi season. The societies and co-operative banks render
short term loans to the farmers. National
Bank of Agriculture and Rural Development (NABARD), state co-operative and
district co-operative are linked together.
NABARD is the controlling authority.
The policy has dried off their liquidity thereby shattered the trust and
confidence among rural flock. The plea
of politician was to let them function as that of other PSU and if fraud or
irregularities happened then take stern action as per rules and
regulations.
Demonetization policy has direct
impact over agricultural economy. The
prices of sugar, jaggery, paddy, vegetables and what not are falling down than
the production cost. The market price is
lesser than minimum support prices. The
demand is subdued as there is little cash available in market. The sugar mill owners have not paid cane
prices to farmers for the year 15-16.
The move is definitely suicidal for the agrarian population unless urgent
steps are taken at once.
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