ATM crisis: Modi snatched our money, gave it to Nirav, says Rahul; updates

Several states are facing a cash shortage despite currency flows in the economy at the pre-demonetisation level

ATM

Severe cash crunch has been reported in several states of India – Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana, and automated teller machines (ATMs) in these regions are running dry. People are facing a huge monetary crisis, with a majority of ATMs running out of cash. In Bihar’s Patna, several ATMs have gone ‘out of service’ causing inconvenience to the locals. Taking stock of the situation, Union Finance Minister Arun Jaitley on Tuesday said the temporary shortage of currency caused by a sudden and unusual increase in some areas was being tackled.

“We have reviewed the currency situation in the country; there is more than adequate currency circulation and it is available with the banks… a temporary shortage caused by the sudden and unusual increase in some areas is being tackled,” Jaitley said. Congress President Rahul Gandhi slammed PM Modi for the cash crunch, saying: “Modi has destroyed the banking system.”

Rahul Gandhi said, “Nirav Modi fled with Rs 300 billion (Rs 30,000 crore) and Prime Minister didn’t utter a word. We were forced to stand in queues as he snatched Rs 500 and Rs 1,000 notes from our pockets and put in Nirav Modi’s pocket.”

The Congress chief also took a dig at BJP-led Central government’s slogan ‘Achhe Din’ and questioned as to when ‘these goods days’ were going to come. Not only Rahul Gandhi, terming the situation as “financial emergency”, Trinamool Congress MP Derek O’Brien said: “PM Modi had said that everything will be fine in 50 days, but it has now been more than 1.5 years, and there is still a cash crunch.”

Here are the top developments in the crisis caused by a sudden shortage of cash across several states and what the government is saying:
1. Life gets miserable for many Indians, especially traders: Despite the currency flow in the economy going back to the pre-demonetisation level, ATMs are going dry making life miserable for many residents, especially traders. Many are running from one ATM to another in search of currency notes.

ALSO READ: Demonetisation redux? ATMs again running dry across states amid cash crunch

Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly.

Click here to read → ATM Crisis

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Before PNB fraud: Nirav Modi, Choksi left 18 businessmen, 24 firms bankrupt

Eighteen businessmen and 24 firms who had taken the franchise of Modi and Choksi’s jewellery brand ended up filing criminal complaints of financial bankruptcy

Nirav Modi scam at PNB

The Punjab National Bank (PNB) and other public sector lenders aren’t the only entities that got hit by Nirav Modi and Mehul Choksi, in a Rs 114 billion fraud that was unearthed at PNB recently. Over two dozen firms and 18 businessmen who had taken franchise of Nirav Modi and Mehul Choksi’s jewellery brand between 2013 and 2017 also reportedly found themselves at the receiving end of frauds committed by the duo — with the cases involving amounts upto Rs 200 million (Rs 20 crore). | Today’s Paper

Eighteen businessmen and 24 companies who had taken the franchise of Modi and Choksi’s jewellery brand between 2013 and 2017 ended up filing criminal complaints of financial bankruptcy caused by breach and fraud committed by the duo, the Times of India reported. The concerned businessmen and firms, the report added, had set up franchise showrooms of Choksi-owned Gitanjali Jewellery and Gili across several cities and regions: Delhi, Agra, Meerut, Bengaluru, Mysuru, Karnal, and parts of Gujarat and Rajasthan.

Based on records accessed by it, the national daily reported that the first information reports (FIRs) filed in all the aforementioned cases dealt with criminal conspiracy, fraud, and violation of agreement by Choksi’s firms.

According to the records, even after taking security deposits between Rs 30 million (Rs 3 crore) and Rs 200 million (Rs 20 crore) from the franchisees, Choksi’s firms violated agreements and committed fraud in sending stocks of diamond and precious gems to the former.

How did Choksi’s firms cheat these businessmen?
According to the report, under the three-year contract signed between Choksi’s firms and the franchisees, a fixed minimum guarantee commission at 12 per cent per annum on the security deposit, apart from the rental for the jewellery showroom, was mandated to be paid by Choksi.

ALSO READ: Nirav Modi PNB fraud: CBI seals bank’s Brady House Branch in Mumbai

However, the franchisees soon found violations: That Gitanjali would not replenish the stock, send items that were priced much lower than the market rates, or not pay the agreed upon rental.

Who all got caught up in the fraud?
Vaibhav Khurania, a Delhi-based businessman who had opened a retail store in Rajouri Garden, had to shut shop after Gitanjali allegedly failed to send him stocks worth Rs 30 million (Rs 3 crore) after having taken the payment, the national daily reported. The report quoted one particular FIR as saying: “In fact, they sent those items of which the market price was much less, but the showroom price was 3-4 times more of the actual price.” | Readmore…

 

Reasons why RBI is introducing Rs 200 notes

The decision to introduce the new note was taken by RBI board in March

People walk past a barricade inside the Reserve Bank of India (RBI) headquarters in Mumbai. (Photo: Reuters)

Today’s Paper : The Reserve Bank of India (RBI) will issue Rs 200 notes soon, possibly at the end of August itself, filling the missing link between Rs 100 and Rs 500, and thus facilitating ease of exchange for common public.

The finance ministry on Wednesday notified the introduction of the new notes. The decision to introduce the new note was taken by RBI board in March.

Introduction of currency notes is done by any central bank based on an assessment of inflation, economic growth, replacement of soiled banknotes, reserve stock requirements, needing to combat counterfeiting but most importantly, to facilitate ease of transactions for the common man.

The optimal system of denominations of currency is worked out on the basis of minimising the number of denominations needed for offering the exact change. There are actually some renowned international research works behind determining the optimal mix of currency notes. | Readmore…

NPA problem: RBI identifies 12 mega defaulters for insolvency

The RBI will issue directives to banks on these large accounts

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Today’s Paper : The Reserve Bank of India (RBI) on Tuesday said its internal advisory committee (IAC) had identified 12 accounts that covered about 25 per cent of the banking system’s non-performing assets for immediate resolution under the Insolvency and Bankruptcy Code.

The gross bad debt of the Indian banking system as of March was at Rs 7.11 lakh crore, which means the 12 accounts would be responsible for about Rs 1.78 lakh crore.

The central bank did not give the names of the borrowers.

The government has amended the RBI Act, giving powers to the central bank to direct banks to take punitive action against individual accounts under the Code. Earlier the central bank could give directions only on an industry basis.

The process of appointing a professional to take over the management of a company and then come out with a solution to repay loans will take a long time and may not be a workable solution, say corporate lawyers.

The process begins with the banks approaching the National Company Law Tribunal (NCLT) to appoint a professional to manage a company even as the existing board gets suspended. The professional gets 180 days to come up with a workable solution for the company so that it can repay its loans. This timeline can be extended by another 90 days. If the company fails to come up with a solution within the 270 days, a liquidator is appointed.

Banks and workers will then have to submit their claims to the liquidator. “The difference between the new code and the Board of Industrial and Financial Reconstruction is that the former has stringent timelines. Meanwhile, a promoter can move the High Court on various grounds, thus delaying the process,” said RS Loona, managing partner, Alliance Corporate Lawyers. |READMORE…

Upcoming bank and government exams in 2017

The candidate should be careful while filling out the application

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More than 1.5 crores candidates took up the bank exams of IBPS (Institute of Banking Personnel Selection) in the last three years and vacancies in the Indianbanks equaling 68000 were occupied.

When it comes to making a career choice that promises security and financial stability, bank jobs in India have always been roped in first. Public sector banks are getting a tough competition from private banks. As a result, they are reaching out to rural and semi-urban areas. Despite the rise of Information Technology, millions of people still prefer bank jobs and apply for various positions in public sector banks.

Here’s the list of upcoming bank exams and jobs in 2017. It also features other government exams.

Listed are the important details regarding the bank exams and jobs for the year 2017-18: Read More