RBI has pumped in 9.2 trillion rupees of new notes: Source

January 19, 2017

New Delhi, Jan 19: The Reserve Bank of India has injected 9.2 trillion rupees ($135.21 billion) worth of new currency notes into the banking system to help replace the notes banned in November, a parliamentary panel member quoted RBI governor Urjit Patel as saying on Wednesday.

RBI
Patel met the panel on finance to answer questions about the November 8 abolition of Rs 500 and Rs 1,000 notes, or 86 percent of the currency then in circulation, in a bid to unearth billions of dollars of unaccounted money.

About 15.4 trillion rupees worth of the notes were removed from circulation.

Patel, however, failed to provide any figure for how many of the banned notes had been deposited into the banking system and he did not provide clarity on when the cash situation would become normal, according to a second member of the panel who was also present at the appearance.

Both the members spoke on the condition of anonymity as the panel's deliberations are confidential.

The RBI governor also told the parliamentary panel that consultations between the government and the central bank on demonetisation had began in January 2016, the second panel member said.

However, the government notified the RBI it wanted specifically to scrap Rs 500 and Rs 1,000 notes on November 7, a day before the RBI board formally approved the recommendation, the member said, citing a note sent to the panel by the central bank. Modi then announced the decision later on November 8.

The ban sparked a severe cash crunch that has disrupted economic activity, leading to the biggest monthly fall in automobile sales in 16 years in December. The slump coincided with a contraction in services industry and manufacturing activity.

The International Monetary Fund (IMF) on Monday cut a full percentage point off India's GDP growth forecast, to 6.6 percent, in the fiscal year that ends in March 2017, citing the blow to the cash-reliant economy.

The IMF also trimmed the growth outlook for the fiscal year 2017-18 to 7.2 percent from 7.6 percent estimated earlier.

On Wednesday, two top finance ministry officials also appeared before the panel to present the government's position.

The member said the panel would summon Patel again after the upcoming parliament session.

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News Network
April 9,2024

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The Delhi High Court rejected Chief Minister Arvind Kejriwal's plea challenging his arrest by the Enforcement Directorate (ED) and remand order passed by the trial court in connection with the excise policy case. The court delivered the verdict in the excise policy case on Tuesday.

In its order, the high court said the petition challenged the arrest and said it was in violation of Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA). "The court clarifies that the plea is not for bail but for declaring the arrest illegal," Bar and Bench reported while citing the court order.

The high court said the material collected by the ED “reveals Arvind Kejriwal conspired and was actively involved in use and concealment of proceeds of crime." 

“The ED case also reveals that he was involved in his personal capacity as well as convenor of AAP," the order said.

Kejriwal had earlier questioned the timing of the arrest that came just ahead of the Lok Sabha Elections 2024.  Reacting to this, the court said, “Petitioner has been arrested in money laundering case and court has to examine his arrest and remand as per law irrespective of timing of elections."

Reacting to Kejriwal's argument casting doubt on the statements of “approvers" in the excise policy case, the court said the statements of “Raghav Magunta and Sarath Reddy are approver statements which were recorded under the PMLA as well as Section 164 CrPC".

“To cast doubt on the manner of recording statement of approver would amount to casting aspersions on the court and judge," the order added. “The law of approver is over 100 years old and not one year old. It cannot be suggested that it was enacted to implicate the present petitioner (Kejriwal)," it added.

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News Network
April 5,2024

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New Delhi: The Congress has released its manifesto for the 2024 Lok Sabha election, with jobs creation, development of infrastructure, and a national caste census among the major highlights.

The manifesto was released in Delhi by party boss Mallikarjun Kharge, who was flanked by senior leaders Sonia Gandhi and Rahul Gandhi. Former Union Finance Minister P Chidambaram - who led the committee that drafted the document - was also present.

"This manifesto will be 'nyay ka dastavez' (a document for justice) in the political history of the country. From the five pillars of the 'Bharat Jodo Nyaya Yatra' - yuva (youth), kisan (farmers), naari (women), shramik (workers), and hissedari (equity), 25 guarantees will emerge... ," Mr Kharge said.

The overall theme of the manifesto is based on 'work', 'wealth', and 'welfare', the party said.

"'Work' means you must provide jobs. 'Wealth' must be created before it is distributed. 'Welfare' means taking care of the poorer sections," the Congress said.

Silent on CAA

While the manifesto is silent on the controversial Citizenship (Amendment) Act and restoration of Article 370, the party promises immediate restoration of statehood to Jammu and Kashmir.

Caste Census

One of the biggest talking points is the caste census - a political hot topic that has been in the headlines since the Bihar government's statewide survey was released in November.

The 48-page document promises to amend the Constitution to raise the 50 per cent cap on reservations for SCs, STs and OBCs, with Caste Census providing the latest data to go ahead with the affirmative action. Addressing land issues, the party also pledges to establish an authority to monitor the distribution of government land and surplus land under the land ceiling Acts to the poor.

MSP for Farmers

The party has also promised to implement MSP, or minimum support price, for farmer growing cash crops. The MSP issue has been at the heart of protests by farmers since 2020, when lakhs from across the country went on a months-long agitation against the centre's (now-scrapped) three farm laws.

The Congress has said it will give a permanent legal guarantee for MSP - a core demand for protesting farmers - based on the formula recommended by the Swaminathan Commission.

"Congress has been the only party that has lent its ear to the distress of the farmers and farm labourers, and we are determined to do everything possible to alleviate their pain and make agriculture a desirable livelihood," the party said, attacking the BJP's response to the farmers protest as "callous and brutal".

Poverty

The party also vowed to eliminate poverty by improving the fortunes of 23 crore people over the next decade. Mr Chidambaram attacked the BJP as a "government of the rich, by the rich, and for the rich", and said it is "driven by the interests of the top 1 per cent".

"... but we will look at the bottom 50 per cent. The bottom 50 per cent is as important. It has been estimated 23 crore people are still poor in this country. The UPA lifted 24 crore people out of poverty and we promise, if the Congress-led government comes to power in 2024, we will lift 23 crore in 10 years."

As part of this promise - and to empower women - the Congress said it would launch a 'Mahalakshmi' scheme to provide an unconditional cash transfer of Rs 1 lakh per year to the oldest female member of every poor family.  Beneficiaries will be identified as those from the bottom level of the income pyramid.

Inequality of income and opportunity remain India's ugliest truth. It is the moral and political responsibility of any government to ensure that every family is assured of a basic income every month, the party said.

National Security, China

The Congress said it "recognises that national security is not enhanced by chest-thumping or exaggerated claims, but by quiet attention to borders and resolute defence preparedness".

The party said it would work to restore status quo on the country's borders with China and "ensure areas where both armies patrolled in the past are again accessible to our soldiers".

This has been seen as a direct jab at the BJP over the military stand-off with China in parts of eastern Ladakh following violence in June 2020 that, the opposition has repeatedly claimed, led to New Delhi surrendering territory to Beijing.

On diplomatic tension with Maldives, the Congress said it work to "repair relations".

Healthcare

Universal free healthcare, including cost of diagnosis, surgery, and medication, will be made available, the party said. This will come with cashless insurance up to ₹ 25 lakh, like the model implemented in Rajasthan, when the Congress was in power.

"We promise that healthcare will be universal and free in public health centres, such as hospitals, clinics, PHCs, MHCs, and dispensaries, as well as health camps. Free healthcare will include examination, diagnosis, treatment, surgery, medicines, rehabilitation, and palliative care."

The Congress said it would also establish Assisted Living and Care Centres for disabled people and provide representation for them in local bodies.

Other Major Points

In a move likely to resonate strongly among unemployed youth struggling with massive loan debts, the party said it would "as a one-time measure of relief" write off all student educational loans, including unpaid interest. This amount will be calculated as on March 15.

Banks will be compensated by the government, the Congress said.

The party said it would also introduce a law to "recognise civil unions between couples belonging to the LGBTQIA+ community".

The Congress said it would amend laws to "combine the efficiency of EVM and transparency of ballot papers". "Voting will be through the EVM but the voter will be able to hold and deposit the machine-generated voting slip into the voter-verifiable paper audit trail (VVPAT) unit," the party said.

2024 Lok Sabha Election

The election will be spread over seven phases beginning April 19. Votes will be declared June 4.

Prime Minister Narendra Modi and the ruling BJP - which is yet to release its manifesto - are bidding for a third consecutive term.  They face a combined challenge from the opposition, which has united (for the most part) under the INDIA banner led by the Congress. 

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News Network
April 7,2024

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Purulia: West Bengal Chief Minister Mamata Banerjee on Sunday alleged the central investigating agencies were asking TMC leaders to either join the BJP or face action.

Addressing an election rally in Purulia district, she alleged agencies such as the ED, CBI, NIA and the I-T Department were working as 'arms' of the BJP.

"Agencies such as the NIA, ED and CBI are being used to harass TMC leaders. They are carrying out raids without prior information, and barging into houses. What the women would do if someone entered their house when everyone was asleep in the dead of night?" she asked.

Banerjee was referring to Saturday's incident in Bhupatinagar where a team of the NIA was attacked by a mob when it went to arrest two accused in a blast case.

"The agencies are asking our leaders and activists to either join the BJP or face action," she alleged.

Asking people not to fall for any provocation, Banerjee alleged the BJP was fanning communal passions during Ram Navami.

The chief minister also accused the BJP-led government at the Centre of depriving West Bengal of funds for MGNREGA and PM-Awas schemes.

She said the state government will provide Rs 1.2 lakh for building houses for the poor.

"The EC will not give permission to us to give the money now. After the elections, we will construct the houses of the poor," she said.

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