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.

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ATM transactions may get costlier as operators seek hike in inter-bank fees

The representation is being led by National Payments Corp of India after meetings were conducted separately for private and public sector lenders

Demonetisation, ATM

In a move that might potentially add some more burden on the common man, the automated teller machine (ATM) operators, especially those of the private banks, are demanding a raise in inter-bank charges for ATM transactions, citing demonetisation, an increased cost of operating the channel, and fewer withdrawals.

The representation is being led by the National Payments Corp of India (NPCI) after meetings were conducted separately for private and public sector lenders.

The inter-bank fee is charged by one bank from another for use of its ATMs by the customers of the other. Any raise in this leads to increased cost burden for banks with smaller ATM networks. If banks pass on part of this cost to consumers, the number of free ATM transactions they are allowed to make in a month at their bank or other banks’ ATMs might get reworked. | Today’s Paper

According to a Livemint report, the demand for raising the rate is being led primarily by private sector banks. Some large public sector banks are against an increase as it would lead to higher costs for them.

A banker from one such large public sector bank was quoted as saying that their charges were already high and if they increased it further, they would be bound to lose. Once they have ascertained the costs, they would discuss it with the stakeholders and fix the rate, he added.

The banker said because private sector banks started putting up ATMs before the public sector ones, the former have a locational advantage but he admitted that the security charges and recalibration of machines due to the issue of new currency notes have led to additional costs for all banks.

Following demonetisation of high-value currency notes and the increase in digital transactions, ATM usage has declined drastically, leading several banks to rationalise their ATM network.

Another reason for seeking the fee hike is that ATM companies are now under stress and think that the management of the machines have increased and not much deployment is happening.

A banker from Union Bank of India was quoted as saying that even though minimum wages of security guards or monitoring charges had shot up, the inter-bank charges had remained the same. The increase they were seeking was marginal, he added.

Gurugram sees biggest drop in house prices: Report

Bengaluru was followed by Kolkata, a 44 per cent decrease, and Ahmedabad, a 42 per cent decline

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Gurgram drops house prices:  A year after demonetisation, Gurugram saw an 18 per cent decline in house prices in the first eight months of 2017, the biggest year-on-year drop among top 10 residential markets, said a new study.

“Almost all the cities witnessed a drop (5-10 per cent) in weighted average absorbed price after demonetisation as many developers reduced rates and offered freebies during the period worth five to seven per cent, resulting in a discount or correction of up to 15 per cent,” said the report by data analytics firm PropEquity.

Cities such as Gurugram, Kolkata and Chennai witnessed a considerable dip in weighted average absorbed price (month-wise year-over-year comparison) while Gurugram witnessed the launch of lottery projects impacting the price to a considerable extent, it said. It said in the resale market, prices witnessed a dip of 10-15 per cent immediately after the demonetisation. Gurugram witnessed a 10 per cent drop in prices in the resale market in the first eight months of 2017, the highest among top markets.

economy policy 

“Price corrections happened after implementation of goods and services tax, particularly for ready-to-move-in properties and properties nearing completion. Some (four to five per cent) recovery has been witnessed in the past two to three months,” it said.

The country’s information technology hub, Bengaluru, saw a 45 per cent dip in residential sales in the first eight months of this year, the biggest among the top 10 residential markets in the country.

Bengaluru saw absorption of 20,505 units between January and September as compared to 37,200 units a year ago, said PropEquity. The average sales drop in the top 10 cities is about 36 per cent, PropEquity said.

Black day vs anti-black money day: BJP, Opposition face off over note ban

Manmohan Singh said if anyone benefited demonetisation, GST, it was China whose imports to India grew by 23% in just 1 year

Demonetisation, currency, notes

A year into demonetisation – Anti-Black Money Day, the opposition and the government on Tuesday exchanged verbal blows over the action with former Prime Minister Manmohan Singh calling it disastrous while Finance Minister Arun Jaitley rejected the charge saying there was an ethical and moral rationale behind the decision which had given a “new direction” to the economy.

Jaitley, however, acknowledged that the “benefits may not be immediately visible” but would make future generations proud.

Fielded by the party in poll-bound Gujarat, Manmohan Singh said the measure had failed its ostensible purpose of curbing wealth accumulated through tax evasion as it was known by now that none of the stated objectives of eliminating black money, terror financing and counterfeit currency have been met.

ALSO READ: War of words: It’s govt’s ‘anti-black money day’ vs Oppn’s ‘black day’

“The fact that more more than 99 per cent of the (spiked) currency came back into the banking system has punctured the government’s claim. There are also widespread reports of the rich converting their black money into white while the poor have undergone immense suffering,” he said, “invoking the memory of more than a hundred people who lost their lives last year in the wake of the demonetisation”.

Calling the withdrawing of 86 per cent of legal tender in one single stroke as undemocratic and a coercive move, the former Prime Minister said “the demonetisation was clearly not the solution” to end the menace of black money and tax evasion in India.

“Demonetisation has proved to be a mere bluster to reap political dividends while the real offenders have escaped,” he said, again calling it “an organised loot and legalised plunder”. | READ MORE

Demonetisation greatest money-laundering scheme integrated by govt: Shourie

Modi govt is only about 300-feet statute, bullet trains: Arun Shourie

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Today’s Paper : Banging the Narendra Modi authorities over sliding monetary development and increasing job deficits, former Union Minister Arun Shourie has likened demonetisation with suicide, saying these is too “a daring step”.

He also called it the major money-laundering scheme.

“It was the major money-laundering scheme ever, conceived and implemented completely by the government, ” It was an “idiotic jolt” this individual continued, “everyone who black color converted it into white, ” he said.

“This is a government by ‘ilhaam’ (revelation). The Primary Minister has the ‘ilhaam’ one night that demonetisation should be done and he does it. In any case it was a bold step. Need to remind you suicide too is a bold step, ” Shourie said within an interview with NDTV when asked why in his view, the authorities went in for demonetisation.
Prime Minister Narendra Modi announced demonetisation of Rs 500 and Rs you, 000 currency notes on November 8 last season.

“Which argument (offered by the federal government in defence of demonetisation today survives? Black money? All of it converted white. Terrorism? Terrorists are still coming into India. At the end they have nothing to say, ” he added.

Shourie also took a dig at BJP President Amit Shah who has said that current slowdown is “due to technical reasons”, terming him “that famous economist? ” and underscoring that official figures simply cannot be brushed under the carpet….READ MORE 

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…

RBI stops printing Rs 2,000 notes; Rs 200 note may hit market next month

RBI reportedly already started printing the first batch of 200 rupee note in June to ease out currency availability in the country.

INDIA RBI

Today’s Paper : The Reserve Bank of India (RBI) has stopped printing the Rs 2,000 currency notes and will not be bringing new notes of that denomination in the current financial year, according to a Livemint report on Tuesday.

Officials of the central bank reportedly told the newspaper that the RBI had also accelerated the process of printing the Rs 200 currency notes. The new notes are expected to start circulating by next month.

“About 3.7 billion Rs 2,000 notes, amounting to Rs 7.4 lakh crore, have been printed; that more than compensates for the 6.3 billion Rs 1,000 notes that were withdrawn after demonetization on 8 November 2016,” Livemint said, citing an RBI source.

The RBI has reportedly already started printing the first batch of Rs 200 note in June to ensure easy currency availability in the country.

In fact a report by SBI even says that the introduction of Rs 200 note will fill in the “missing middle” even as the new currency in circulation (CIC) has already reached 84 per cent of the pre-demonetisation level. | readmore…