Demonetisation and its Aftermath

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onlyravi said:
If you read / watch his statement again. He said that no new exemption is given to political parties. All existing policies are in place for them.
What he means: That all donations under 20000 cash per donor will not require to furnish PAN card details and will not be scrutinized by IT. dept. Which means if a party has 1CR INR of black money all they need to do is make 500 entries of Rs 20,000 using all random names. No ID proof or source of income or PAN details are reqd.

And he added that if any party is found misusing these existing norms they will be prosecuted under law. But you tell me when there is no law or legal requirement to trace the donor who has donated under 20000 INR then how can any action be taken against a political party.
The only silver lining here is that EC has come into action and suggested(Not confirmed if this is in force as of today) that the Rs20,000 limit be reduced to Rs2000.
It still wont stop the political parties from doing what they currently do. Only thing is instead of making 500 fake random entries they will now have to make 5000 :D
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Exactly, cash donors cannot be traced and all the party trust need to do is to submit a audit report from some CA and we all know how such processes go and if anybody has doubts, take a look at the Satyam scam once.

All of FM's later rebuttals is just hogwash to cover the loop holes they have open to them and this was never unintentional in the first place. BJP politicians have been using these loop holes even before the public announcement as they were depositing cash or buying properties left and right using the party trust as a front.

EC can suggest a lot things, but the its not like will get implemented on the spot.

There are rules to disqualify politicians who submit incorrect details or even not disclose all details and its in fact a punishable offense. That should be enough to disqualify almost everybody from BJP, Congress, AAP and all local parties but has anybody actually seen that happen to a single politician.
 
adaneam said:
I would be more than happy if number of taxpayers increase after this change. I'm ready to give new system a chance.
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I too would be happy to see that happen, but I would not be happy if all this just helps to fatten the pockets of politicians. Accountability should be applicable to the public servants just as much as it applies to the public.

As I said before, Political and religious trusts are like the massive gateways for the black economy in India. Any politician who claims to be waging a war against black money with out actually acting against these two gateways is just a liar and hypocrite in my book.

Parked black money is very little (3-5%) and big chuck of the rest goes through these gateways. The immediate short term cost of this whole fiasco is pegged at 1.3 Lac crore and the long term damage is going to be quite substantial and this was all to retrieve black money in cash form that is potentially around 1.5 Lac crore, but in actuality, even if you count the 20 lac to 200 crore there being caught here and there, it all amounts to a small part of the lot. The rest of the black money, especially that of big wigs has either remained same or even worse converted to white due to the loophole ridden implementation.

Also its a delusion to think that this will force the public to be honest. Lets not forget that black money can also be in the banks. For example, people who submit fake rent receipts, medical and other fake documents to get exemptions are still doing the same thing. There are people at my work who put in rent receipts for 50k per month while they are living in self owned houses. The evaded money may be in the bank system, but it can still be considered as black money that has been converted to white because because of poor scrutiny.
 
PoBoy said:
http://economictimes.indiatimes.com...f-it-exceeds-rs-5000/articleshow/56060026.cms


Deposits of old Rs 500 and Rs 1,000 notes worth more than Rs 5,000 into bank accounts can be made only once till December 30.
The government has announced fresh restrictions on deposits to check laundering of unaccounted cash using bank accounts
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They keep forgetting or ignoring the old rules they had when they formulate new rules. For example, there was a rule that prevented deposit > 50k to accounts that are not KYC compliant. Unlike private banks, nationalized banks like SBI don't seem to take the KYC process seriously. When my mom last submitted the KYC, she said that it looked like they will throw the form into the garbage as soon as she left and that is what seems to have happened. In fact, its the same thing even now. She submitted he KYC form now and they didn't know who should take it. The bank manager took it ultimately, but again it looked like they might just throw it away.

What is a person expected to do if they have 75k to deposit and a non KYC account? Deposit 50k and consider the rest as lost? There are other legitimate reasons for multiple deposits. For example, my mom deposited 60k in Hyderabad in two trips. She still has another 8k in cash kept at our house in my home town. So what is she supposed to do now. eat the loss because these bumbling politicians keep changing the rules each day.
 
And to be honest, it looks like a shady attempt to prevent further deposits so that they can show a doctored report card and save face at the expense of innocent people. Majority chunk of the money is already back in banks with the black money hoarders rushing in before every body else via the illegal exchanges. However, there are still people (especially aged people or busy people) who waited for the cash withdrawal rush piped down. In fact banks themselves sent messages asking depositors to wait till its more convenient and now they are trying to make it difficult for these people to make their deposits.

From what I read, it is not a question of multiple deposits either. Even if you are making a deposit for first time and the amount is > 5000 Rs, you have to explain why its not deposited so long and can only deposit of the bank staff agree. They want this money going into their PMGKY scheme instead.
 
Actually, IIRC, one can deposit older notes even after 30th December. All one needs to do is give a written application along with it stating the reason for delay in depositing the money. Also that money can't be deposited in a regular bank, but at designated RBI branches. So I don't think anyone who has legit money, should take a loss.
 
rdst_1 said:
Actually, IIRC, one can deposit older notes even after 30th December. All one needs to do is give a written application along with it stating the reason for delay in depositing the money. Also that money can't be deposited in a regular bank, but at designated RBI branches. So I don't think anyone who has legit money, should take a loss.
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RBI branches are present mostly in Metro and Tier-I cities. So for most people, they will be out of bounds.
 
^^ Which is why I didn't consider going to RBI branch as an option at all.

For example, consider an aged person living in a town. Till now, they are used to transacting in cash, which they get from bank once a month after using up all the energy they have and despite those joint pains and those BP or sugar induced problems. They find it hard to use an ATM, let alone get accustomed to the culture of credit cards and digital wallets and or get acquainted with the security intricacies associated. How do those people cope with this now and in future. If they cannot deposit the money at their nearby bank, its as good as lost. The govt's attitude towards such people in their cashless economy charade seems to be that they just drop dead already.

Also, given the pace at which changes are being done haphazardly and enforced every day, who knows if the RBI option is even going exist or how many virgins you need to sacrifice before the RBI gods to satisfy the requirements.
 
PoBoy said:
http://economictimes.indiatimes.com...f-it-exceeds-rs-5000/articleshow/56060026.cms


Deposits of old Rs 500 and Rs 1,000 notes worth more than Rs 5,000 into bank accounts can be made only once till December 30.
The government has announced fresh restrictions on deposits to check laundering of unaccounted cash using bank accounts
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WTF?!!! So people are just supposed to say bye bye to the rest?! Or probably stand in line everyday to deposit 4999.99/- .... Absolutely ridiculous!

paarkhi said:
Everyday new rule, it is as if Mr.Modi daily in the morning says to himself, Let's think an Idea "How should we harass Indian Public more and more?"
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Nah. He imagined himself to be one of those characters in an Idea ad. Think up something so, so simple that no one's ever thought of it before..... & implement it in a jiffy. Then bask in the glory as everyone hails you - 'What an idea, Sirjee!!'.

Unfortunately for us, real life is quite different.
 
Say bye bye to foreign investments. Companies that were looking to set up shop have already crossed India's name off their list. Expecting some existing one's to wrap up their stuff and nope the eff out of this idiocy.
Please tell me why PayPal is forced to auto withdraw funds of Indian users to their bank accounts but same restrictions aren't on Paytm or other Indian wallets. Has RBI made up a different rule for them?
And we still have bhakthlok praising Modi when the most corrupt are right next to him cough... Adani cough... Ambani

This past one month have proved one thing: Indians are anarchists who wouldn't mind an economy getting dismantled overnight, but they'd also welcome dictoatorship if it means appealing to their own sense of moral superiority.

God help us all!
 
Look at all these "anti-nationals" in Aligarh bashing the govt after 90% of the small scale/cottage industries had to shut down due to lack of petty cash required for their trades to run.


Even here in Hyderabad, many small sized businesses have to shutdown shop. Not everybody has the the money and the know how to become cashless.

To me, it looks like Modi is on a mission to prove that he one of these things.

- More retarded than Rahul Gandhi and even Arvind Kejriwal
- Devious enough to push the country into dictatorship by stripping people of their earnings, destroying much of the small scale businesses and throwing a significant quantity of people into unemployment.

On the other side, the govt is ensuring that RBI selectively sends cash by the truck loads to places where Modi is to give his next speech.
 
Mr.J said:
Indians are anarchists who wouldn't mind an economy getting dismantled overnight, but they'd also welcome dictoatorship if it means appealing to their own sense of moral superiority.
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Its not news to me at least. In many cases, even the educated people in our country don't realize that a countries economy is not a plaything to me messed around with to the whims and fancies of illiterate and semi-literate politicians. Its like how even a small touch on water causes so many ripples across the surface or how touching a single domino starts a chain reaction of disaster. The repercussions from this are going to be wide spread.
 
Seems to me now even if they lose all elections ahead, they would have made enough money on the side to retire happily now. This includes the insiders at the RBI and SBI etc. This is a bigger scam than all of congress' scams combined but still no one seems to realise it.
 
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