![]() | #1666 | |
Senior - BHPian Join Date: Mar 2010 Location: Bangalore
Posts: 1,207
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![]() | #1667 | |
Senior - BHPian Join Date: Dec 2006 Location: Bangalore
Posts: 1,285
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Lets not discount cost of cash. Its a huge number. Millions probably never get the benefits that were meant for them because the money was siphoned off by others and since it was cash theres no trail. | |
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![]() | #1668 |
Senior - BHPian Join Date: Jun 2014 Location: Bangalore
Posts: 1,432
Thanked: 1,042 Times
| ![]() Not really surprised with the series of busts happening at Bangalore. The first major haul was that of two KA Govt. officials who were caught with lots of money in old & new currency. Now a PWD contractor who was accused helping them, has now also confessed that he helped two ministers, 4 IAS and 5 IPS officers in the same way :P. And today evening another 2.5 crores seized from a home under guard of an old woman and two guard dogs! One thing for sure, the new 2000 notes seems to be leaving a trail of evidence which the RBI, Enforcement Directorate and Income Tax people are just scanning through. |
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![]() | #1669 | |
BHPian ![]() Join Date: Feb 2013 Location: Mumbai
Posts: 344
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With the kind of cash being caught from various corners of the country, it seems that there are many more people who took advantage of certain loopholes and converted/exchanged their black money effectively. What I am hearing is that now bank employees are involved in depositing black money "illegally" and then letting people withdraw multiple times in new notes. In the process, common people on the streets are having to wait endlessly for cash as such people are taking away the cash. Who do you blame? The Govt. or such unscrupulous fellows who have misused the system? What other way is there to plug this? If the Rs. 500 notes do not come in adequate numbers before Dec 30th, then I would rate this entire demonetization exercise as a failure. | |
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![]() | #1670 |
BHPian Join Date: Jan 2010 Location: Trivandrum
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I agree. There is another cost aspect also. When disbursing salary in cash which was prevalent in Central Govt Offices barely 10 years back, there was a cash handling allowance paid to do this work! |
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![]() | #1671 | |
Senior - BHPian Join Date: Mar 2010 Location: Bangalore
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Last edited by GTO : 16th December 2016 at 09:38. Reason: Please quote ONLY the relevant bits of a post. Quoting a full, long post inconveniences our mobile readers. Thanks! | |
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![]() | #1672 | |
BHPian Join Date: Apr 2010 Location: India
Posts: 465
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Only that portion of the money which is blatantly illegal (because it's from Bribes/smuggling/extortion) will not come back into the formal economy. I would still expect the government revenue to go up by approx. 2 lakh crores when you add up the tax gain and the gain from extinguished notes. | |
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![]() | #1673 |
Senior - BHPian ![]() | ![]() |
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![]() | #1674 | ||
Senior - BHPian Join Date: Jun 2014 Location: Bangalore
Posts: 1,432
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But what also happened is that lots of these crooks also had the habit of keeping their illegal money in cash. So when the going got tough they approached the banks to deposit the money to their own saving accounts (which helped them get the bank loans in the first place). The banks just allowed them to do that. Now as soon as the money hit the account, all their loan defaults were recovered from their savings account. The loan agreement which these crooks had signed in the first place allowed such provisions. Net result, lots of NPAs of banks got cleared out. The money due to the bank came in. These crooks who willfully defaulted their loan now cannot even openly cry. Quote:
I am eagerly awaiting the day when Primary Co.Op banks across the country are asked to come up with their account books, and the KYC details of the account holders. NABARD who did checks in District co.op banks in Kerala, have already said that 1000 crore of money lies in these accounts with no traceable owner. | ||
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![]() | #1675 | |
Senior - BHPian ![]() Join Date: Dec 2007 Location: Gurugram
Posts: 7,940
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Also, despite all the hoopla, how much currency is being seized, and what is the percentage which is being caught. I will be surprised if they manage to catch even 10% of the currency 'diverted'. | |
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![]() | #1676 | |
Distinguished - BHPian ![]() ![]() | ![]() Quote:
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![]() | #1677 | |||
Team-BHP Support ![]() ![]() | ![]() Quote:
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And now new cash hoarders are getting caught at a frequency that was unheard of earlier. ![]() | |||
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![]() | #1678 | |
BHPian Join Date: Apr 2009 Location: Bangalore
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You had also mentioned about notes printed without a serial number, but I fail to see how anyone could have peddled any more than a few of those. That would have been a glaring omission akin to not having Gandhi's picture on the note. The ₹1.544 million lakh crores is a widely publicized figure, I too had mentioned it on this thread along with a link to the news article over a week ago. You're right on this! I personally cannot fathom the expediency behind this move, but I guess it had to be done some time. Whether it was bold or political suicide is something only posterity will tell. The opposition seems to be sensing a rare moment of vulnerability in the government and is going all hammer and tongs at it, for the moment it seems to have effectively killed GST from rolling-out next year which may now only happen in 2018. The government will be desperate for good news in January, if all goes well we will get some decent numbers from demonetization and hopefully the February budget will see some reductions in Income Tax. As we all know, demonetization alone will not solve all our problems, concerted efforts to nab tax evaders thereby widening of the tax net and the move to a less-cash society will need sustained efforts. Last edited by nowwhat? : 15th December 2016 at 11:00. | |
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![]() | #1679 | |
Senior - BHPian ![]() Join Date: Nov 2006 Location: Bengaluru
Posts: 4,370
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Finding which bank did suspicious amount of transaction wont even need the serial numbers. They know how much money was sent to which bank and how much they exchanged. Using the serial number of notes (i hope RBI knows which serial numbers were distributed in which city/bank) can also be used. This whole exercise was not to find fake notes (for which signature is required). But just movement of money. | |
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![]() | #1680 | |
Team-BHP Support ![]() ![]() | ![]() Quote:
![]() So I pointed out that one of my guesses may be right. Last edited by Samurai : 15th December 2016 at 11:14. | |
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