99% Of Banned 1,000-Rupee Notes Returned, Says RBI

[Kal Muah]

Appreciate it mate, I have been suggesting this to take place in Pakistan for years, but always get the excuse that majority of people are illiterate so how are they going to do banking with out cash. People will always find excuses not to do something if its going to cause some inconvenience even if it has huge benefits in the long run.

DeMo was primarily a macroeconomic disruptive policy.yes,it was meant to attack black money,but that in itself is also an economic move..Such a macro policy will have many purposes,many objectives and many effects.Let's just put out the most visible benefits:

1)formalisation of economy,less cash and more digital transactions,more money in formal banking system

2)directly attack black money and it's hoarders,and prevent tax evasion

3)deal a blow to terror funding,insurgency funding and other criminal activities.

lets take 1).
https://www.bloombergquint.com/mark...-lead-to-a-shift-towards-financial-assets.amp

At the time of demonetisation, senior bankers like the State Bank of India Ltd.’s Arundhati Bhattachraya told BloombergQuint thatsystem. The actual proportion has surprised everyone. Nearly 60 percent of demonetisation deposits have stayed with banks, RBI Deputy Governor S.S. Mundra told BloombergQuint in an interview last week. Aggregate deposits of scheduled commercial banks stood at Rs 106.5 lakh crore as of July 7, 2017, compared to Rs 96.2 lakh crore as of July 8, 2016, according to RBI data.

Data suggests that mutual funds have been among the beneficiaries. Mutual fund assets stood at Rs 18.96 lakh crore as of June-end, compared to Rs 16.28 lakh crore at the end of October 2016 before demonetisation was announced. That works out to an average increase of about Rs 33,500 crore each month over the eight month period. In contrast, the pace of monthly additions during the eight months between October 2015 and June 2016 stood at just over Rs 7,000 crore.

this clearly shows that bank deposits have not disappeared after demo,as many thought would happen

the value of cash that is in the economy has been reduced.

https://twitter.com/x/status/902877009155506184

It was 16.45 trillion in end of march 16',now it is 13.1 trillion at end of march '17.Plus,as everyone must know that percentage of cash in high denominations was 86%.now it is 72%

digital transactions have increased,Economic survey and RBI data shows that.

So the first objective seems to be a success,of course we will have to wait and see how durable this success is

2)black money:the contentious part.

first,an article:http://www.opindia.com/2017/06/why-any-claim-that-demonetisation-was-a-failure-is-totally-misplaced/

now,some facts.after Demo,there was a slew of ED,CBI and IT raids all over the country.everyone knows this

During the period of demonetisation from November 9 last year to January 10 this year, "The total undisclosed income admitted was more than Rs 5,400 crore"

this is just the immediate period of DeMo,not even accounting the 8 months that have passed since then

http://www.dnaindia.com/business/re...rs-71941-cr-found-in-3-yrs-govt-to-sc-2511074

Operation clean money:

Ii. About 18 lakh persons whose cash transactions did not appear in line with their tax profile were identified and approached through email/sms.

ii. More than 9.27 lakh responses were received giving information on 13.33 lakh accounts involving cash deposits of around Rs.2.89 lakh crore. Out of this record number of 5.27 lakh responses were received in the first 12 days of the operation.

iii. Advance data analytics tools were deployed which further identified 5.56 lakhs new cases and about 1 lakh those cases in which either partial or no response was received in the earlier phase. Besides, about 200 high risk clusters of persons were identified for appropriate action.

http://pib.nic.in/newsite/PrintRelease.aspx?relid=169407

http://www.financialexpress.com/eco...n-by-i-t-dept-rbi-demonetisation-data/834107/

more on clean money:

More than 60,000 persons, including 1300 high risk persons, have been identified for investigation into claims of excessive cash sales during the demonetisation period. More than 6000 transactions of high value property purchase and 6600 cases of outward remittances shall be subjected to detailed investigations. All the cases where no response is received shall also be subjected to detailed enquiries. Government has already taken extensive enforcement action including search and seizure and surveys largely based on the information received during the demonetisation period. More than 2,362 search, seizure and survey actions have been conducted by ITD during 9th November 2016 to 28th February 2017, leading to seizure of valuables worth more than Rs.818 crore, which include cash of Rs.622 crore, and detection of un-disclosed income of more than Rs.9,334 crore. More than 400 cases have been referred by ITD to the Enforcement Directorate and the CBI. Surveys have been conducted in more than 3400 cases by Assessment Units.

http://www.incometaxindia.gov.in/Lists/Press Releases/Attachments/615/Press-Release-Operation-clean-money-14-04-2017.pdf

now on shell companies,almost 3 lakh companies are under the radar of authorities.1 lakh companies which were dormant have been struck off.37,00 companies have been identified

http://www.livemint.com/Politics/r6...ack-money-govt-steps-up-scrutiny-of-shel.html

http://economictimes.indiatimes.com...s-identified-pm-modi/articleshow/59402192.cms

those were the numbers on july 1,and have only increased since then

Last month, the authorities ordered nearly 200,000 shell companies to be shut down, and the aide said the government is examining hundreds of thousands more.

The Serious Fraud Investigation Office is creating a database of shell companies, and has so far identified 114,269 as front firms. The database contains details of those involved in the shell company ‘eco-system’, from those who set up the companies to the beneficiaries of laundered money and the professional mediators who bring the operators and beneficiaries together, the government note said.

http://www.livemint.com/Politics/r6...ack-money-govt-steps-up-scrutiny-of-shel.html

a look at how a lot of these companies operate,with some houses having tens of shell companies:http://www.livemint.com/Money/cwZv5...-are-used-in-black-money-creation-launde.html

this has been in the works since a long time:http://www.opindia.com/2017/04/mass...ndering-shell-companies-in-100s-of-locations/

and stock exchanges are not left behind!

http://www.livemint.com/Money/f6HZz...showcause-notice-to-suspected-shell-comp.html

and there's this:

https://twitter.com/x/status/902878467875782657

suspicious transactions report,that banks have to file with RBI have increased hugely.almost 1.7 trillion ruppes worth of transactions have been flagged.

 

[padamchen]

Appreciate it mate, I have been suggesting this to take place in Pakistan for years, but always get the excuse that majority of people are illiterate so how are they going to do banking with out cash. People will always find excuses not to do something if its going to cause some inconvenience even if it has huge benefits in the long run.

Stop dancing.

What did Modi tell us first about Demonetisation and how much would never come back?

Now that it has (something I believe the BJP knew would happen ) you guys are wordsmithing new tunes from the Sangh playbook.

Not interested in dancing with chaddis. Especially those on pot bellied hairy torsos stuck atop spindle legs.

Cheers, Doc

 

[pothead]

Stop dancing.

What did Modi tell us first about Demonetisation and how much would never come back?

Now that it has (something I believe the BJP knew would happen ) you guys are wordsmithing new tunes from the Sangh playbook.

Not interested in dancing with chaddis. Especially those on pot bellied hairy torsos stuck atop spindle legs.

Cheers, Doc

Why are you asking a Pakistani that question?

If you want to know what Modi promised, do go through his speech on the eve of Demo.
Anyway, why are you so reluctant for a debate? I would think if this was such a sure shot winner of a topic, why not provide proofs and prove it as wrong?!

The generalization only makes your argument weak and frankly very silly.

 

[Imad.Khan]

Stop dancing.

What did Modi tell us first about Demonetisation and how much would never come back?

Now that it has (something I believe the BJP knew would happen ) you guys are wordsmithing new tunes from the Sangh playbook.

Not interested in dancing with chaddis. Especially those on pot bellied hairy torsos stuck atop spindle legs.

Cheers, Doc

I think you have got me confused with someone else

 

[Hamza913]

(Plz no negative ratings it's all in good fun)

 

[Dungeness]

BBC just adding insult to India's injury

 

[Soumitra]

Govt blacklists 300,000 directors of shell companies
The corporate affairs ministry will also track down owners of suspected shell companies and take penal action against those who divert funds from firms that are struck off the records of Registrar of Companies
Gireesh Chandra Prasad

MoS (corporate affairs) P.P. Chaudhary. The shell companies crackdown and freezing of bank accounts is aimed at curbing black money, checking financial irregularities, and improving corporate governance and ease of doing business in India. Photo: PTI
Mumbai: The government on Wednesday decided to bar as many as 300,000 directors of companies that have defaulted on statutory compliances from serving on the boards of other firms to improve corporate governance and check financial irregularities through the use of shell companies.

The ministry of corporate affairs, which regulates unlisted companies, also decided to track down the beneficial owners of suspected shell companies and take penal action against those who divert funds from companies that are struck off the records of the Registrar of Companies (RoC).

The ministry said it is also monitoring the action being taken by regulatory bodies against professionals such as chartered accountants, company secretaries and cost accountants who have been found to have colluded with the shell companies in committing financial irregularities.

The move came a day after the government froze the bank accounts of more than 200,000 companies struck off the records of RoC to prevent their directors from accessing the accounts.

The idea is to ensure companies take their statutory obligations seriously and to deter firms from using a complex corporate structure to divert funds raised from financial institutions or to launder money.



“Weeding out shell companies would not only help in checking the menace of black money but also would promote an ecosystem of ‘ease of doing business’ and enhancing investors’ confidence to which the present government is fully committed,” minister of state for corporate affairs P.P. Chaudhary said in a statement. He took charge on Monday.

Filing annual reports on time will minimize the possibility of fraud and tax evasion, the statement said, adding that it will also protect stakeholder interest and improve India’s image globally. At a review meeting on Wednesday, the ministry decided to take comprehensive steps to address the issue of shell companies and their role in money laundering and circulation of unaccounted money, the statement said.

The government’s move is a clean-up exercise mainly targeting shell companies suspected of money laundering in the aftermath of the 8 November demonetization of high-value currency notes, said Kamlesh Vikamsey, former president of the accounting rules maker, the Institute of Chartered Accountants of India.

“The government will take action against companies which have not complied with the Companies Act and not filed returns for the past three years. However, the decision to strike off companies’ name from records can be reversed if the companies are able to prove that they were operational in all these years,” said Vikamsey.

“It is a step towards improving corporate governance, shaking the culture of non-compliance,” said J.N. Gupta, co-founder and managing director of corporate governance advisory firm Stakeholder Empowerment Services.



Sahib Sharma and Komal Gupta contributed to this story.

@jaunty any idea how these 3 Lakh directors of Shell Companies were identified?

It is the result of Big Data Analytics after Demonetization

 

[pothead]

@jaunty any idea how these 3 Lakh directors of Shell Companies were identified?

It is the result of Big Data Analytics after Demonetization

When one goes down the hatred rabbit hole......

 

[OnlyTheTruth]

Not all things can be quantified in black and white. One of the unstated objective of demonitisation was the temporary recapitalization of banks. In view of the rising NPA burden and a price to book value below one, most banks would have found it difficult to raise equity. With one sweeping stroke banks were flush with cash albeit temporarily, giving the centre ample time to implement Indradhanush Mission while remaining fiscally prudent.

DeMo is undoubtedly the least effective way to tackle parallel economy, but with its myriad of objectives it is certainly not a disaster. Only a fool would think so.

 

[ashok321]

WAS OPEN TO STAYING ON BUT GOVT DIDN'T GRANT SECOND TERM'

They wont, because they prefer Gujaratis.

Former IMF employee over former Reliance employee.

 

[ashok321]

Rajan is not impressed with govt's chest-thumping on growth

Rajan's 3 reasons behind India's slow pace

 

[ashok321]

Let India grow at 8-10% for 10 years before chest-thumping, Raghuram Rajan jantakareporter.com/india/india-ca…

 

[ashok321]

https://twitter.com/x/status/906304102761619456

 

[ashok321]

Why 'cashless societies' don't benefit the poor wef.ch/2vYy03U

 

[Navin A]

Why 'cashless societies' don't benefit the poor wef.ch/2vYy03U

Why flase flagging does not benefit PDF