Category Archives: Banking

भारतीयों को बेच दिया भारत सरकार ने ग्लोबल बैकों से

भारतीयों को बेच दिया भारत सरकार ने ग्लोबल बैकों से

भारतीयों को बेच दिया भारत सरकार ने

जैसा के अब सभी को समझ आ चुका होगा के वर्तमान भारत सरकार और उसे चलाने वालों का एकमात्र उद्देश ग्लोबल बैंकरों के समूह को लाभ पहुंचाना है|

shutterstock_758594201

इस समय भारत सरकार की बागडोर ग्लोबल बैंकरो और चंद उद्योगपतियों के हाथों में है जिन का सर्वप्रथम उद्देश्य भारतीयों की बचत और कृय शक्ति को शुन्य के बराबर कर देना है.

साथ ही काले धन के नाम पर सभी की जमा पुंजि को बरबाद कर देना है जिस से की आप को अपनी हर जरूरत के लिये बैंकों से लोन लेना पडे, आप को शादी करनी है, छुट्टीयों में घूमने जाना है,  घर में रंग रोगन करवाना है तो आप को लोन लेना पड़ेगा..

इस के लिये यह भी जरूरी है की भारतीयों के पास मौजूद ज्यादा से ज्यादा धन को बरबाद कर देना, इस बात का  उदाहरण है 10 दिन रहते सरकार की ये घोषणा की एक व्यक्ति 5000 रुपये से ज्यादा की रकम नहीं जमा कर सकता है..    फिर 50 दिन कि अवधि के बाद रिजर्व बैंक में पैसे जमा करने का जो प्रावधान था उसे भी निरस्त कर दिया जबकि सरकार रिजर्व बैंक के द्वारा टैक्स काट कर भी पैसा लौटा सकती थी.. और अभी तक सरकार जनता को अपना ही पैसा बैंक से जरूरत के मुताबिक निकालने नहीं दे रही है.

सवाल यह उठता है कि क्याें नहीं जमा कर सकता है कोई अपना ही पैसा और क्यों नहीं निकाल सकता ?

परन्तु डिमोनिटाईजेशन की आड में भारतीयों को अपना बंधुआ मजदूर बनाने का खेल खेलने वाली ग्लोबल बैंको का मुख्य उद्देश्य भारतीयों का जमा पैसा बरबाद कर के उन्हें लोन और अपने बैंकिंग सिस्टम का गुलाम बनाना है .

क्या आपने कभी सोचा है  के आखिर क्यों बरबाद करने पे तुली है मोदी सरकार भारत वासियों की जीवन भर की जमा पुंजि ? भारतीय ऱूपये पर से दुनिया भर का भरोसा गिराकर क्या हासिल किया सरकार ने..भारत की आर्थिक संप्रभूता को पूरे विश्व के सामने उजागर किसके लिए किया गया..   किसको फायदा पहुंचाना चाहती है मोदी सरकार ?

ऱिलायंस ग्रुप को 25 से ज्यादा देशों में बडे बडे प्रोजेक्ट दिला दिये गये हैं…  इस समय पूरी दुनिया की मीडिया में अडाणी ग्रुप को अस्ट्रेलीया में कोल मांईस चलाने में वर्ल्ड बैंक के द्वारा अनैतिक सहयोग देने की जम कर आलोचना हो रही है परन्तु भारतीय मीडिया ने चुप्पी साध रखी है.. क्यों कि सच यही है की इस सरकार और इसके सहयोगीयों को ग्लोबल बैंकों ने दुनिया भर में लाखों करोड रुपये दे कर खरीद लिया है और जो वो चाह रहे हैं वो यह सरकार कर रही है.

ग्लोबल बैंकों के ही ईशारे पर सरकार जनता पर जोर जबरदस्ती से कैशलेस सिस्टम थोप रही है..इस के लिए वह लोगो को अपना ही पैसा अपनी मर्जी से निकालने पर प्रतिबंध लगा रखी है. . जिस से की लोग कैशलेस का ईस्तेमाल करने पे मजबूर हो जाए और ग्लोबल बैंकों की झोली घर बैठे भरती रहे.

कैशलेस सिस्टम में उपभोक्ता को जहाँ भी अपना डेबिट और क्रेडिट कार्ड स्वाइप करना होता है वहाँ गौरतलब है कि कार्ड द्वारा किये गए प्रत्येक लेन-देन पर बैंक शुल्क लेता है, और इस शुल्क का भुगतान उस व्यापारिक प्रतिष्ठान को भी करना होता है जिसने अपने यहाँ पीओएस टर्मिनल लगा रखा है।

20150224155706-payments-credit-cards-american-express-visa-mastercard-discover

इस शुल्क को एमडीआर (merchant discount rate) के नाम से जाना जाता है। एमडीआर का एक हिस्सा उस बैंक के पास जाता है जिसने उपभोक्ता कार्ड जारी किया है, एक हिस्सा उस बैंक के पास जाता है जिसने संबंधित प्रतिष्ठान के पीओएस टर्मिनल को स्थापित किया है, जबकि एक हिस्सा भुगतान माध्यमों (payment getways) को जाता है, जैसे वीज़ा (visa) रूपे (rupay) और मास्टरकार्ड (mastercard) इत्यादि ग्लोबल बैंकों को.

आप सभी को ये भी को ये जान कर भी हैरानी होगी की वर्ल्ड बैंक भी ग्लोबल बैंकों के समूह  का बनाया हुआ एक छलावा है जो असल में एक  प्राइवेट बैंक से ज्यादा कुछ नहीं है और जिसने वर्ल्ड बैंक नाम के छलावे के साथ दुनिया भर के देशों में काम करने की मान्यता ले रखी है

देशों की इकोनोमी को अपने हिसाब से प्रभावित करना इस का काम है  ग्रीस, पेरू, जिम्बाबवे जैसे देशों को कर्जदार आैर कंगाल बनाने में वर्ल्ड बैंक का ही हाथ था

आप अपने डेबिट और क्रेडिट कार्ड को पलट कर देखें तो वहां आप VISA, MASTER CARD, DINERS CLUB, AMERICAN EXPRESS जैसे नाम और लोगो पायेंगे, ये सभी इन ग्लोबल बैंकों की संस्थाएं हैं.. जान लें की ATM से आप के द्वारा 100 रू निकालने पर भी इन विदेशी बैंकों को कमीशन प्राप्त होता है .

download

यही कारण है की ये विदेशी बैंकों के समूह और वर्ल्ड बैंक चाहते हैं कि सभी के सभी भारतीयों को बैंकिंग सिस्टम के अधीन ले आया जाए.

यानि आप के द्वारा किए गये हर टरांजैक्शन पर ग्लोबल बैंकों को कमीशन प्राप्त होगा .. हमारी सरकार को इन ग्लोबल बैंकों को इतनी चिंता है की यह हमें इनका कैशलेस सिस्टम यूज करने के लिये जो डिस्काउंट दे रही है वह सब्सिडी के रूप में ग्लोबल बैंकों के खाते में जमा कर रही है.

banksters_n_government_public_serpents

एक तरफ सरकार हमसे रसोई गैस की सब्सिडी छिनती है दूसरी तरफ स्वदेशी का राग अलापने वाली सरकार विदेशी बैंकों को हमारी सब्सिडी का पैसा पहुंचाने में शर्म भी नहीं महसूस करती है.

आखिर शर्म भी क्यों करे आखिर पैसा पहुंचाने के बदले सरकार चलाने वालों को भी पैसा मिल रहा है और इस मामले में तो जिंदगी भर मिलता रहेगा .

More in next..

Andolanrat

Read further:

INDIANS TOWARDS MODERN SLAVERY

https://arresteddevelopments.wordpress.com/2016/11/08/indians-towards-modern-slavery/

World Bank Secretly Supporting Adani’s Carmichael Coal Mine

https://arresteddevelopments.wordpress.com/2016/12/23/world-bank-secretly-supporting-adanis-carmichael-coal-mine

Cashless Monetary System also means Absolute Power over you

https://arresteddevelopments.wordpress.com/2016/12/17/cashless-monetary-system-means-absolute-power-over-you

Indian Government must bring legal clarity to demonetization-masked compulsory deposits

https://arresteddevelopments.wordpress.com/2016/12/02/indian-government-must-bring-legal-clarity-to-demonetization-masked-compulsory-deposits

 

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

Universal Basic Income Is Inevitable, Unavoidable, and Incoming”

The last time I saw universal basic income discussed on television, it was laughed away by a Conservative MP as an absurd idea. The government giving away wads of cash responsibility-free to the entire population sounds entirely fantastical in this austerity-bound age, where “we just don’t have the money” is repeated endlessly as a mantra. […]

In this world, universal basic income seems like a rather distant prospect. Yes, there are some proposals, like Switzerland and Finland, both of which are holding a referendum on universal basic income. But I expect neither of them to pass. The current political climate is just too patriarchal. We live in a world where free choice is unfashionable. The mass media demonizes the poor as feckless and too lazy and ignorant to make good choices about how to spend their income. Better that the government spend huge chunks of GDP employing bureaucrats to administer tests, to moralize on the virtues of work, and sanction the profligate.

But this world is fast changing, and the more I study the basic facts of economic life in the early 21st century, the more inevitable universal basic income begins to seem.

And no, it’s not because of the robots that are coming to take our jobs, as Erik Brynjolfsson suggests in his excellent The Second Machine Age. While automation is a major economic disruptor that will transform our economy, assuming that robots will dissolve jobs entirely is just buying into the same Lump of Labour fallacy that the Luddites fell for. Automation frees humans from drudgery and opens up the economy to new opportunities. Where once vast swathes of the population toiled in the fields as subsistence farmers, mechanization allowed these people to become industrial workers, and their descendants to become information and creative workers. As today’s industries are decimated, and as the market price of media falls closer and closer toward zero, new avenues will be opened up. New industries will be born in a neverending cycle of creative destruction. Yes, perhaps universal basic income will help ease the current transition that we are going through, but the transition is not the reason why universal basic income is inevitable.

So why is it inevitable? Take a look at Japan, and now the eurozone: economies where consumer price deflation has become an ongoing and entrenched reality. This occurrence has been married to economic stagnation and continued dips into recession. In Japan — which has been in the trap for over two decades — debt levels in the economy have remained high. The debt isn’t being inflated away as it would under a more “normal” rate of growth and inflation. And even in the countries that have avoided outright deflationary spirals, like the UK and the United States, inflation has been very low.

The most major reason, I am coming to believe, is rising efficiency and the growing superabundance of stuff. Cars are becoming more fuel efficient. Homes are becoming more fuel efficient. Vast quantities of solar energy and fracked oil are coming online. China’s growing economy continues to pump out vast quantities of consumer goods. And it’s not just this: people are better educated than ever before, and equipped with incredibly powerful productivity resources like laptops, iPads and smartphones. Information and media has fallen to an essentially free price. If price inflation is a function of the growth of the money supply against growth in the total amount of goods and services produced, then it is very clear why deflation and lowflation have become a problem in the developed world, even with central banks struggling to push out money to reinflate the credit bubble that burst in 2008.

ubie

Much, much more is coming down the pipeline. At the core of this As the cost of superabundant and super-accessible solar continues to fall, and as battery efficiencies continue to increase the price of energy for heating, lighting, cooking and transportation (e.g. self-driving electric cars, delivery trucks, and ultimately planes) is being slowly but powerfully pushed toward zero. Heck, if the cost of renewables continue to fall, and advances in AI and automation continue, in thirty or forty years most housework and yardwork will be renewables-powered, and done by robot. Water crises can be alleviated by solar-powered desalination, and resource pressures by solar-powered robot miners.

And just as computers and the internet have made huge quantities of media (such as this blog) free for users, 3-D printers and disassemblers will push the production of stuff much closer to free. People will simply be able to download blueprints from the internet, put their trash into a disassembler and print out new items. Obviously, this won’t work anytime soon for complex objects like smartphones, but every technology company in the world is hustling and grinding for more efficiency in their manufacturing processes. Not to mention that as more and more stuff is manufactured, and as we become more environmentally conscious and efficient at recycling, this huge global stockpile of stuff acts as another deflationary pressure.

These deflationary pressures will gradually seep into services as more and more processes become automated and powered by efficiency increasing machines, drones and robots. This will gradually come to encompass the old inflationary bugbears of medical care, educational costs and construction and maintenance costs. Of course, I don’t expect this dislocation to result in permanent incurable unemployment. People will find stuff to do, and new fields will open up, many of which we are yet to imagine. But the price trend is clear to me: lots and lots of lowflation and deflation. This, ultimately, is at the heart of capitalism. The race for efficiency. The race to do more with less (including less productivity). The race for the lowest costs.

I’ve written about this before. I jokingly called it “hyperdeflation.”

And the obvious outcome, at the very least, is global Japan. This, of course, is not a complete disaster. Japan remains a relatively rich and stable country, even after twenty years of deflation. But Japan’s high level of debt — and particularly government debt — does pose a major concern.  Yes, as a sovereign currency issuer borrowing in its own currency the Japanese government runs no risk of actual default. But slow growth and deflation are stagnationary. And without growth and inflation, the government will have to raise taxes to cover the deficit, spiking the punchbowl and continuing the cycle of debt deflation. And of course, all of the Bank of Japan’s attempts at reigniting inflation and inflating away that debt through complicated monetary operations in financial markets have up until now proven pretty ineffectual.

This is where some form of universal basic income comes in: ultimately, the most direct stimulus for lifting inflation and triggering productive economic activity is putting cash in the people’s hands. What I am suggesting is that printing money and giving it away to people — as opposed to trying to push it out through the complicated and convoluted transmission mechanism of financial sector lending — will ultimately become governments’ major backstop against debt deflation, as well as the temporary joblessness and economic inequality created by technological acceleration. Everything else, thus far, has been pushing on a string. And the deflationary pressure is only going to become stronger as efficiency rises and rises.

Throw enough newly-created money into the economy, inject inflation, and nominal tax revenues can rise to cover the debt load. Similarly, if inflation gets too high, cut back on the money-creation or take money out of circulation and bring inflation into check, just as central banks have done for the last century.

The biggest obstacle to this, in my view, is the interests of those with lots of money, who like deflation because it increases their purchasing power. But in the end, rich people aren’t just sitting on hoards of cash. Most of them do have businesses that would benefit from their clients having higher incomes so as to increase spending, and thus their incomes. Indeed, in a debt-deflationary spiral with default cascades, many of these rentiers would face the same ruin as their clients, as their clients default on their obligations.

And yes, I know that there are legal obstacles to fully-blown helicopter money, chiefly the notion of central bank independence. But I am an advocate of central bank independence, for a variety of reasons. Indeed, I don’t think that universal basic income should be a function of fiscal spending at all, not least because I think that dispassionate and economically literate central bankers tend to be better managers of monetary expansion and contraction than politically motivated — and generally less economically literate — politicians. So everything I am describing can and should be envisioned as a function of monetary policy. Indeed, what I am advocating for is a new set of core monetary policy tools for the 21st century.

via Universal Basic Income Is Inevitable, Unavoidable, and Incoming — azizonomics

 

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

Can We have A world without debt?

Can we have a world without debt?

debt-academy

For anyone currently in debt, a world without debt probably sounds like a great solution. Some debts – like those between friends or family members – can easily be written off, or at least delayed. But what about debts from financial institutions or between governments? They may be a little more difficult to simply wipe the slate clean.

Is that even a position we want to be in? The whole concept of money is built around a model of debt. A world without debt would require a really drastic change, both economically and morally. It could spell financial ruin for smaller countries and would dramatically impact our everyday lives.

This Payplan infographic investigate the history of debt, the current position in the world and answer the question.

 

v2-can-we-live-in-a-world-without-debt

Do you think Debt itself is not evil.. ?

why this payplan infographic presenting Debt an essential system of modern economics. .?

Why they want to live your life in debts ?

Think and write 

 

source: https://www.payplan.com/can-we-have-a-world-without-debt/

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

Woman removes clothes at RBI, India

Demonetization fallout: Woman removes clothes at RBI gate

Indian Government once again retracted to its own assurances to public on Demonetization

Since the last day to exchange currency notes with banks has passed, the people are turning to RBI (as it was told by the govt) to get the new notes in lieu of their old. Unable to get a few junked currency notes exchanged, a frustrated poor woman became topless in front of RBI regional office in New Delhi.

rbi2

The woman, who was with her child, was in tears when turned away by guards after repeated request to exchange her junked notes. In protest she sat in front of the RBI entrance gate.

When the guards tried to forcefully move her away from the entrance, the woman in disgust took off her clothes and sat topless in front of the iron gate, stunning the onlookers as well as the security personnel.

Later, the RBI guards called the police and she along with her kid was bundled away to police station, thus ending the surcharged drama at the high profile building which is just a stone’s throw away from the Parliament House.

Many others including retired and aged persons who have come to exchange their old notes said the government should not go back on the promise made by Prime Minister Narendra Modi in his November 8 address to the nation that old notes could be exchanged at the select RBI offices till March 31.

A day later Members of All Democratic Women’s Association (AIDWA) staged a protest before RBI regional office on Street here, registering their anger over theincident.

The women protesters, numbering around 35, raised slogans against RBI and attracting a crowd of passersby.

 “This incident exposed how people, especially women were suffering due to and lack of in banks and ATMs. We have conducted a survey which reveals that ATMs in many areas are lying without for a long time,” said general secretary Asha Sharma.
Central Governments key ally Shiv Sena described it as the “worst regime in 10,000 years” and said the BJP leaders are living in fool’s paradise to think that the exercise would eradicate black money after putting even women to great difficulty.
Shiv Sena said the plight of the hapless mother looked like a “government sponsored Nirbhaya tragedy.
“If the government cannot see and understand the suffering of this woman, then such a ruthless and deaf regime would not have been in existence in the last 10,000 years,” the Sena said in an editorial in party mouthpiece ‘Saamana’.
Read further:

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

 

Demonetization: A monumental disaster

James Wilson is a Member of the Mullaperiyar Special Cell, Government of Kerala, India. Who is a civil engineer by profession has presented an extremely detailed and meticulous calculations and inferences on the Demonetization of Indian Currencies.

Just go through the full article brought here , for the  knowledge of the subject is best expressed through a clear and concise presentation by Mr. James Wilson.

banner_fire-demon

 

A monumental disaster in offing!

Currency in Circulation 


High denomination notes of ₹500 & ₹1000, which is 86.4% of the total currency in circulation ceased to be legal tender due to the demonetisation. RBI denotes these demonetised notes as “Specified Bank Notes” (SBN). As per RBI Annual Report 2015-2016, as of 31/03/2016, the value of the total SBN is ₹14.18 lakh crores. Volume wise it consists of 15707 million ₹500 notes and 6326 million ₹1000 notes, ie, a total of 22033 million notes. Meanwhile, the total currency in circulationvalue wise increased to ₹17.975 Lakh crores (4/11/2016) from ₹16.415 lakh crores (31/03/2016)


Exact information of the amount of SBN as on 8/11/16 is now in public domain, thanks to a question-answer in the Rajya Sabha, which shows 17165 million pieces of ₹500 (₹8.582 lakh crores)and 6858 million pieces of ₹1000 (₹6.858 lakh crores) in circulation (Total Value: ₹15.44 lakh crores Total Volume:24023 million pieces) [So my assumptions in my earlier post  of value of 15.5 lakh crores and volume of 24000 million is almost in the target]. To print and replace 24023 million (24.023 billion) notes is an enormous challenge considering this sheer volume of notes to be printed and capacity of our printing presses.




Capacity of Printing Presses


How can RBI achieve this target with resources at their disposal? 


How much time RBI will take for to print and replace SBN with new notes? 

To understand this, in a pure resources management perspective, we have to examine the output capacity of our currency note printing presses. We have two currency printing presses under Security Printing and Minting Corporation of India Limited (SPMCIL), one at Nashik in Maharastra and the other one in Dewas in Madhya Pradesh. Nashik Press was established in 1928 and Dewas was in 1974. Also two more modern currency printing press were added later to augment the printing capacity, one in Mysore in Karnataka and the other at Salboni in West Bengal under the Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), which were established by Reserve Bank of India (RBI) in 1996.


First look at the capacities of Nashik & Dewas presses under SPMCIL. I have relied the Annual Report of the SPMCIL as well as a presentation available on the internet by the Currency Management Wing of the RBI. From the above records, it is inferred that Nashik Press capacity is 5800 million notes per year and Dewas capacity is 2620 million pieces. 


Meanwhile, BRBNMPL’s Mysore & Salboni together can print 16000 million notes in 2 shifts in a year. See the screenshot of BRBNMPL website. So all these four presses can together print 24420 million currency notes in a year and this is closer to the supply RBI getting for last 3 years too. 


So all four presses together having a printing capacity of 66.90 million/day. If we take Mysuru and Salboni alone, this will be 43.84 million/day.


Please note that latter in this discussion, it is using billion instead of million as the volume unit since I made references to the statement given by RBI in billions. 

  • For your understanding please note that:

            1 billion = 1000 million = 100 crores


Printing aborad is out of question

My next exercise was to understand whether we can outsource this currency printing to any high quality security presses abroad. That research lead me to the Report of Committee on Public Undertakings (2012-13) which deliberates “outsourcing of printing of currency notes” as recommendation serial no.14. Selected extract from the above report is reproduced here:


“The Committee also find it pertinent to point out that during printing of currency notes worth 1 lakh crores in three different countries, there was always a grave risk of unauthorized printing of excess currency notes, which would have been unaccounted money. The Committee simply wonder how come a decision was taken to have the currency notes printed by above mentioned companies in three different countries. Logically speaking since all the said three countries are well developed, each country certainly had the capability of undertaking the entire printing assignment. In any case the very thought of India’s currency being printed in three different countries is alarming to say the least. During that particular fateful period our entire economic sovereignty was at stake.


The Committee is concerned of the grave implications of such a move as it has wider ramifications in a multi faceted angle. The danger of destabilizing the economy by the agencies of authorities who could have misused our security parameters vis-à-vis printing of currency notes, the use of such notes which could have been printed in excess could easily have fallen in the hands of unscrupulous elements such as terrorists, extremists and other economic offenders, looms large in our minds. The Committee expresses its strong resentment over such an unprecedented, unconventional and uncalled for measure. The Committee while recommending that SPMCIL be strengthened to undertake the printing and minting of the required currency notes/coins fervently emphasise that outsourcing of printing of currency notes/minting coins should never be resorted to in the future.”


Reply of the Government

Since corporatisation, SPMCIL and BRBNMPL have been meeting the requirement of coins and currency and no import has been resorted to. The concerns and recommendations of the Committee have been carefully noted for future guidance.

[Ministry of Finance, Department of Economic Affairs]

( O.M. No.3/8/09-SPMC dated 3rd January, 2013 )”

So this assurance rules out the very question of outsourcing of the currency printing abroad. I don’t think RBI will violate an assurance given to the Committee of Public Undertakings of the Parliament. Hence RBI has to depend on the four presses in our country to meet this enormous demand.


Comparison with demonetisation done in 1977-78


In this context, we have to note that during the demonetisation exercise in 1977-78 only less than 5% of the high value notes were demonetised. It is also important to note that ₹100 note, which was 50.1% of the total currency in circulation was not demonetised during 1977-78. Contrary to the above, this time RBI and Government decided to demonetise ₹500 note, which consists of 47.8% of the value of the total currency in circulation. They also demonetised ₹1000 notes in circulation, thus made 86.4% of value of total currency in circulation redundant, which choked and paralysed the entire cash based economy with a whimsical direction overnight!


₹2000 note – a short shrift solution

Now look at the ₹1000 notes, volume wise its quantity is 6858 million notes. If convert the entire ₹1000 notes to ₹2000 notes, keeping the same value, then the volume will be halved to 3429 million notes to facilitate quick printing and disposal. But there is a catch, RBI has to tweak the ratio between ₹500 and ₹2000 to provide easy change and mobility between these two notes. So obviously, there should be less  volume of ₹2000 notes and more volume of ₹500 notes is mandated to keep the equilibrium of the system. For the time being, let us assume that RBI has gone with a complete swap of ₹1000 with ₹2000 notes totally discarding the mobility in the system.Definitely this is a short shrift exercise without considering the much needed mobility and velocity of the demand of thes various denominations of the currency notes in circulation. In that scenario too, RBI has to print at least 20594 million notes (17615 million ₹500 &+ 3429 million ₹2000) in a short span of time.


Higher denominations will aid hoarding – RBI Study


The elimination of ₹1000 note and introduction of ₹2000 note is really perplexing and the RBI’s explanation made themselves a joke. In this context, invite your attention to RBI Study No. 39 “Modelling Currency Demand in India: An Empirical Study” to see how RBI and Government of India all along resisted to issue high denomination notes even when warranted in a short time to meet the inflation to control, considering the chances of this high denomination currency will be used for hoarding purpose by the black money holders.

The irony is now a high value currency note of ₹2000 is introduced in the guise of controlling hoarding of the very black money, but at the end of the day help the hoarders in transporting and hoarding! This haste and irrational decision was taken without considering the statistical principles of distribution of various denominations in the currency in circulation and also fully side lining the prudent decision to eliminate the chances of hoarding. This short shrift route of going for ₹2000 by RBI without considering any of the above consequences into account and only taking the ease of printing, is a telling reflection of how an Institution like RBI let itself to erode its independent stature to please the political masters!

Printing target – An estimation

I discarded here the essential tweak required for maintain the equilibrium between ₹500 and ₹2000 notes and also the increase of currency required to meet the demand of cash in the economy in the coming months till this disaster is mitigated. Many of Government sympathisers may definitely point that the entire ₹15.44 lakh crores of SBN will not return into the system and there is no need to replace the entire currency. My opinion is that these two factors balance and neutralise each other. Hence for the time being, I decide to go ahead with the figure of 20594 million new notes as our target for printing.

In the initial days, the WhatsApp army were busy in forwarding daring claims that only 50% of the SBN will return into the system. Even our Attorney General told to the Supreme Court that RBI & Government expects only a maximum of ₹12 lakh crores of SBN will be return to the system. Today we are hearing from the media quoting Ministry of Finance sources that around ₹14 lakh crores worth SBN is already returned to the system. Remember that we are still 13 more days away from the date set by Government to deposit the SBN at banks. So its time for RBI & Government to eat the humble pie. It is important to understand that the above cut-off date will not set free RBI’s responsibility to exchange the rest of the currency in circulation at their counters, it only limits the option of depositing/exchanging at banks. That is a detailed matter as it entangled in legal provisions and other issues and hence will be discussed in a future post.


Demonetisation Planning – Rajan or Patel?


To understand the currency printing schedule, first see the letter of transmittal dated 29th August 2016 of the RBI Annual Report 2015-16 signed by Former Governor Raghuram G. Rajan. Kindly note the above date, it is very important. We know that the present Governor Urjit R. Patel assumed office on 4th September 2016.

Now look at the same Annual Report again. Look at Table VIII.4, “Indent and Supply of Bank Notes by BRBNMPL & SPMCIL”. Look at the indent for the year 2016-17, RBI has given an indent for 5725 million ₹500 notes & 2200 million ₹1000 notes along with other lower denomination currency notes. If there was a plan in advance to demonetise these denominations, then why did RBI print and disburse such large quantities of SBN in to circulation? This is nothing but sheer wastage of exchequer’s money.

Moreover, if RBI had such an advance plan to replace the above SBN, they should have devoted their time and energy to print lower denominations notes instead of SBN. Hence it is beyond doubt that the entire demonetisation plan was come into picture after Urjit Patel taken charge. The new denomination note of ₹2000 bear the signature of the new Governor Patel, not of Governor Rajan, which also another explicit evidence to prove that these notes were introduced after Governor Rajan left RBI.

When new currency printing started?


So what is the possible date of starting the new currency printing, yes, after this so called meticulous planning, selling an amazing idea and getting a nod from high echelons to go ahead with the ‘surgical strike’? Many theories are floating in the air about this meticulous planning in the initial days by a certain section of cheerleader media and court jester journalists. I am not ready to buy any of those theories. We learnt from media reports that the printing of the new notes were confined to RBI’sBRBNMPL presses at Mysuru & Salboni. Neither Nashik nor Dewas of SPMCIL were on the loop, may be due to the secrecy of the mission involved. Another reason may be both these presses were already assigned with printing of the lower denomination notes (from ₹100 downward), which is already intended in huge quantities by the annual indent of RBI for FY 2016-17.


Considering all these constraints, let me put a rational date before you considering the resources planning angle. RBI disclosed that they have 2473.2 million ₹2000 in stock for disposal as of 8/11/2016 in response to a RTI query. With the printing capacity of 43.84 million/month of Mysore & Salboni together in 2 shifts, it will take 57 days to print the 2473.2 million notes, that means it started on 12th September 2016. Take another possibility, that RBI took an effort to enhance printing to 3 shifts from 2 shifts, then they can print 65.76 million/month, ie, means it will took 38 days, that means printing started on 1st October 2016 only.


I was really shocked to find that there was not a single ₹500 note was with RBI when they unleashed this demon over the nation! That means RBI unleashed demonetisation with just 32% of the total SBN in circulation, that too a less mobile ₹2000 note stock! They themselves will be aware that within the 50 days window period, they can’t print the rest of the SBN too!

Disbursal of Currency

Then, I look for patterns of disbursal of currency at various dates, which was inferred from the data provided through the press releases by RBI. Look at the table below:

We can see that there was a substantial increase of disbursal of currency between 27/11/06 and 05/12/16 from ₹12589 crores/day to ₹20548 crores/day, this is definitely due to the disbursement of salaries on the first of December. Thereafter, the disbursal drying up substantially in the succeeding period to ₹16000 crores/day. If we take the entire 31 days of demonetisation, the average daily release from 10/11/2016 to 10/12/2016 is ₹14871 crores/day. If the money is disbursed in the above daily average rate, between next 20 days a further ₹2,97,420 crores can be disbursed. Hence Government may be able to disburse a total of ₹7,58,420 crores or a maximum of ₹8,00,000 crores by 30/12/2016. That means just 52% of the total SBN going to be disbursed to us. But even this quantity is doubtful with the present printing woes, which is going to be examined in the subsequent paragraphs.

There is some serious cash delivery issue in the system due to inferior planning and poor judgement from the part of RBI as well as Finance Ministry. Otherwise what is the justification of various new restrictions unleashed day to day basis by RBI without respecting the notification dated 8/11/2016? It is quite depressing to see that even the address to the nation by the Prime Minister is not honoured!

RBI deleting information – why?

While looking for these data, I met with a really shocking finding. RBI published a transcript of the statement given by R. Gandhi, Deputy Governor on 07/12/2016 at its webstie under the title “press releases”. But later it is seen as purged from the RBI website! Meantime, the video of the press conference is still available in the internet (https://www.youtube.com/watch?v=IuSzeRX31ms). This really made me curious. What information was there in the above transcript, which forced RBI to delete it from the website, even sacrificing the very institutional credibility? What is there to hide from the public which was not there in the full video coverage of 5th bi-monthly monetary policy press conference 2016-17? Interestingly the RBI which deleted the transcript of R. Gandhi forget to wipe out that from the cache, so one of my friend in twitter grabbed the information from there and shared with me. See that transcript of R. Gandhi here!

It is quite an irony that the very RBI, which now exhorting us to go cashless by embracing digital mode of payment, did not even know the primary lessons of digital literacy of how to purge a document from their system! Look at the highlighted information – this is not available in the video but provided in the transcript, which RBI deleted. What is the relevance of this information? It cna lead you to the printing volume of new notes disbursed by RBI as of 10/12/2016, which they refuse to divulge so far. 

Disbursal of currency denomination wise

Look at the total value of the lower denomination notes of 19.1 million disbursed by RBI from the above. It comes only to ₹1.059 lakh crores! That means the higher denominations notes are ₹3.81 lakh crores minus ₹1.059 lakh crores = ₹2.75 lakh crores. As RBI has not given the volume of high denomination notes, I was not able to decipher the possible numbers of them.

But in the next press conference on 13/12/2016, RBI provided the numbers to decipher the new currency notes in the system. Look at the statement of R. Gandhi, Dy Governor.

Here Gandhi claimed that 19.1 billion notes of lower denomination on 5/12/16 was increased to 20.1 billion on 10/12/16 meanwhile claimed that RBI disbursed 1.7 billion higher denomination notes of ₹2000 & ₹500 notes. As the amount of the total cash disbursed is ₹4.61 lakh crores, it turned out to be a simple mathematical problem to solve. There is a limit for the lower denominations to fluctuate, as we know the denomination wise quantity of 19.1 billion notes in circulation. Then if 19.1 billion lower denominations increased to 20.1 billion notes, two borderline scenarios emerges:

  • If the entire 1 billion volume increase are of ₹100 notes, then total value will be increased by ₹1.159 lakh crores
  • if the entire 1 billion volume increase are of ₹10 notes, then total value will be increased by ₹1.069 lakh crores.
  • That simply means that the value of higher denominations notes will be in a range of ₹3451 crores to ₹3541 crores.
  • This means if the entire higher denomination notes are of  ₹2000 and its volume will fluctuate between 1.7 billion to 1.8 billion.

If Gandhi would not have given the exact volume wise distribution of each lower denominations in that 07/12/2016 in the transcript, we will not be able to emulate these scenarios. My strong feeling is that it is the very reason why RBI later deleted the said transcript from its website.

You can’t introduce more than a couple of million ₹500 notes into this equation, in that case the volume of higher denomination notes will go up from the 1.7 billion! Even after a month after unleashing the demonetisation on our heads RBI was not able to disburse any substantial quantity of ₹500 notes in the circulation, which are the most essential denomination for the reasons I cited in my previous blog post. That is why we are not seeing these notes in the market and feel the burn of cash crunch so badly.  Its shame on RBI to flash a couple of million notes of this ₹500 notes in metro cities and major urban centres for a limited purpose of optics management before the 24×7 electronics media and to flaunt in WhatsApp forwards & re-tweets on social media! It is really sad to see that a reputed professional organisation like RBI is letting down the nation with these type of cheap tricks of optics management rather meeting the pressing demands!

Lower denomination disbursal – a record??

Gandhi told on 7/12/2016 press conference that RBI has provided 19.1 billion lower denomination notes after demonetisation, which is a record as it is more than what reserve bank provided in last 3 years to the system. If we look at indent & supply for last FY year, from the above table, we can see that around 16 billion lower denomination notes were printed then. This FY year also RBI given an indent to print 16.6 billion lower denomination notes and if the presses print according to their capacity, there will be new 12.5 billion notes till 10/12/2016. Along with this quantity, there will be soiled notes which are being collected to dispose during this FY(Kindly note that, last year alone around 13 billion lower denomination soiled notes were disposed off), which are also pushed back to circulation as we see lots of old soiled notes back. Also note that the total number of lower denomination notes in circulation as  on 31/03/2016 was 56.6 billion. It is interesting to note that Gandhi never claimed RBI has printed 19.1 billion notes, instead he only made a tall claim that these notes were a record volume! Media never asked any questions to him and Gandhi barked in glory! I am sorry to say that I can’t digest this all-time record claim of attention diversion by twisting the facts!

Where is that ₹500 note?

Let us come back to the figure of 1.7 billion high denomination notes disbursed by 10/12/2016. This information is quite perplexing when we compare the printing press capacities. We have seen that RBI had a stock of 2.473 billion ₹2000 notes as on 8/11/2016 itself. So if these printing presses working at least 2 shifts/day, there would have been another 1.4 billion pieces of ₹2000 & ₹500 with RBI by 10/12/2016 (32 days x 43.84 = 1403 million). To completely replace, the ₹1000 notes by ₹2000 notes, RBI needed to print 3.429 – 2.473 = 0.956 billion pieces. So RBI should have by 10/12/2016 printed the entire ₹2000 notes to replace the ₹1000 notes. I hope and pray that RBI did not go ahead with another short shrift solution of printing more ₹2000 notes to replace ₹500 notes after done with ₹1000 notes, which will completely disrupt the mobility and balance of the currency in circulation. Why RBI holding the rest 1.729 billion of ₹2000 notes (3.429-1.7=1.729) without disbursing to public?

Also from the above we can find that a quantity of 0.444 billion ₹500 notes (1.4-0.956=0.444) printed after are with RBI, but a few millions are only disbursed to public. It is really perplexing that why RBI is not distributing these ₹500 notes in substantial quantities? This is quite baffling because RBI through its press releases informed that they disbursed ₹500 notes with the following series numbers:

·       without inset

·       with E as inset

·       with L as inset,

·       E and star as inset and

·       with R as inset.

This indicates that various printing presses are put to the task of printing the ₹500 notes, but as we are not seeing much of ₹500 notes in circulation, it is feared that some issues crop up during its printing. Recollect the media reports of two different design ₹500 notes crop up and RBI’s bizarre explanation. RBI informed that up to 10/12/16, they have disbursed 1.7 billion high denomination notes. This will definitely be 1.7 billion ₹2000 notes and a few million ₹500 notes, as I shown above. Also relying above printing calculations & RTI disclosure, we can very well conclude that RBI may have a stock of at least 1.7429 billion ₹2000 notes and  0.444 billion ₹500 notes as of 10/12/2016.

In the above context, let me put some questions to RBI:

  • Why you are not disbursing sufficient ₹500 notes to circulation to ease the mobility crisis?
  • Why you are not disbursing enough ₹2000 notes and imposing unreasonable restrictions on withdrawal for our money deposited in banks? 
  • Inform us whether the above stock of  notes is having any relation with the hoarding of huge quantity of currency notes seized from various parts of the country?
  • Exact quantity of ₹2000 notes and ₹500 notes printed and disbursed so far  
  • Or your printing systems faced any unexpected failure & you are struck?
  • Exact schedule and output of printing of various denomination of notes at various presses under RBI and SPMCIL

When we will get back our currency?


Now we have to consider when we will get back the ₹500 notes demonetised from the system back. As we seen from above that 0.444 billion ₹500 notes would have been printed up to 10/12/16, then how much time RBI will take to print remaining 16.721 billion pieces (17.165-0.444=16.721).

In this context, I am giving you three possible scenarios considering the printing capacity of our four currency printing presses. I have not considered certain constraints here, like additional skilled manpower needed to introduce a 3rd shift for a prolonged period, raw material supply constraints, machinery maintenance, forced plus routine shutdowns and other surprises which can crop up anytime. Then I have not considered additional output (?) possible with the reduced size of new notes too as someone argues. I gone ahead with a perfect printing mechanism with sufficient manpower and resources at disposal. So take this estimation and earliest possible dates with a pinch of salt.

First Scenario

Mysuru & Salboni (3 shifts/day) AND Nashik & Dewas

@88.82 million/day needs 188 days – 16thJune 2017

Second Scenario

Mysuru & Salboni (3 shifts/day) AND Nashik

@ 81.64 million/day needs 204 days – 2nd July 2017

Third Scenario

Mysuru, Salboni (2 shifts/day) & Nashik

@ 59.73 million/day needs 280 days – 16thSeptember 2017

These are the earliest possible dates to replace SBN with new currency in a pure resources management angle.

Looking at the above earliest dates will make anyone shudder, I don’t know when the normalcy of the system can be restored! Remember, our Prime Minister on 8/11/2016 sought us a couple of days to restore the normalcy  This will give you an idea about the planning prowess of the mandarins in RBI and Finance Ministry. Ask ourselves whether we have fallen into a rabbit hole? We Indians still believe in magic and we bear all subjugation as our bad karma or destiny. But here no magic wand is left to create miracles, we are destined to silently suffer this onslaught for half a dozen months too.

Estimation of possible return of SBN

Now look at the way SBN is coming back to the banks. This table extracts information from various press conferences.

This table will explain you why Government & RBI are getting panic and imposing new restrictions like deposits up to ₹5000 to non-KYC accounts and questioning people depositing more than ₹5000 into their KYC accounts. Why we are treated like criminals? Under which legal or constitutional provision Government and RBI arbitrarily gives this police power to the bank authorities to abuse us?

This is becoming a theatre of absurd when the very Government, who is reluctant to reveal to public the names of celebrities and big shots who keep thousands of crores of black money abroad arm twisting the common man and honest tax payers!. Tell us what is the crime committed by us? Are you intimidating and insulting us for believing the Prime Ministers address to the nation on 8/11/2016??

Look at various possibilities on 30/12/2016 (20 days from 10/12/2016)

  • With an average daily inflow of ₹15000 crores, entire SBN valued ₹15.44 lakh crores will return to banks
  • With an average daily inflow of ₹12800 crores, total SBN valued ₹15 lakh crores will return to banks
  • With an average daily inflow of ₹10300 crores, total SBN valued ₹14.5 lakh crores will return to banks

My strong belief is that SBN valued around ₹15 lakh crores will most probably return to the system, rest of the SBN will be trapped in Nepal & Bhutan and other countries for the time being. If ₹15 lakh crores of SBN return, then it will totally shatter and tear away all mighty claims by the Government and RBI that a maximum of ₹11 lakh crores to ₹12 lakh crores of SBN will only return to banks.

Then the entire demonetisation hungama will fall apart as a monumental disaster, yep, its now just a matter of time.. Now the deadline set by our Prime Minister in his 08/11/2016 speech has already expired.


 The above presentation is the hard work of Mr. Member of the Mullaperiyar Special Cell, Government of Kerala. A civil engineer by profession. Associated with construction & management of various hydro electric projects & thermal power projects of KSEB Ltd between 1994-2001. Since 2001, shfited to water resources management & inter state water disputes with special emphasis on the techno-legal aspects. Now working in a consultant role to provide the techno-legal inputs on various inter state water dispute issues & water policy related matters to Kerala State Government.

Via

https://decipherdemon.blogspot.in/2016/12/a-monumental-disater-in-offing.html?m=1

Read further:

The Trouble With India’s Demonetization Gamble

https://arresteddevelopments.wordpress.com/2016/11/28/the-trouble-with-indias-demonetization-gamble

Demonetization and Freakonomics

https://arresteddevelopments.wordpress.com/2016/11/30/demonetization-and-freakonomics

Indian Government has No Clues of Black Money in India

https://arresteddevelopments.wordpress.com/2016/12/16/indian-government-has-no-clues-of-black-money-in-india

Cashless Monetary System means Absolute Power over you

https://arresteddevelopments.wordpress.com/2016/12/17/cashless-monetary-system-means-absolute-power-over-you

India Came First

https://arresteddevelopments.wordpress.com/2016/12/19/india-came-first

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

Where you can deposit Old Currencies after 50 Days

Where you can deposit your Old Currencies After 50 days

rbi-reu

The central government of India will stop the deposit of old notes of Rs 500 and Rs 1,000 at banks and post offices from 30 December 2016.

However, citizens can still exchange their old notes for new ones at the offices of the Reserve Bank of India (RBI). The apex bank announced that citizens can deposit their old notes of Rs 500 and Rs 1,000 at the RBI counters.

Citizens can still deposit their old notes in their bank accounts via RBI and withdraw money under the guidelines issued by the government.


Here is a list of RBI offices in six metro cities that people can visit to exchange their old notes for new ones:


Bengaluru:

Reserve Bank of India

10/3/8, Opposite Saint Martha’s Hospital,

Nrupathunga Road, Ambedkar Veedhi,

Sampangi Rama Nagar,

Bengaluru, Karnataka 560001

Office Timings:

Monday to Friday : 10 am to 5:30 pm

Saturday : 10 am to 1:45 pm


Chennai:

Reserve Bank of India,

Fort Glacis, Rajaji Salai,

P.B. No.40,

Chennai-600 001.

Office Timings:

Monday to Friday : 9:45 am to 4:45 pm

Saturday : 9:45 am to 1:15 pm


Mumbai:

Reserve Bank of India,

Main Building, P.O.Box 901,

Shahid Bhagat Singh Road,

Mumbai-400 001.

Office Timings:

Monday to Friday : 10:15 am to 5:15 pm

Saturday : 10:15 am to 1:45 pm


Kolkata:

Reserve Bank of India,

15, Netaji Subhas Road,

P.B. No.552,

Kolkata-700 001

Office Timings:

Monday to Friday : 9:35 am to 5:05 pm

Saturday : 9:35 am to 1:20 pm

Ads by ZINC


Hyderabad:

Reserve Bank of India,

6-1-56 Secretariat Road,

Saifabad, P.B.No.1,

Hyderabad-500 004 (A.P)

Office Timings:

Monday to Friday : 10:15 am to 5:15 pm

Saturday : 10:15 am to 1:45 pm


Delhi:

Reserve Bank of India,

6, Sansad Marg,P.B.No.696,

New Delhi -110 001.

Office Timings:

Monday to Friday : 9:45 am to 4:45 pm

Saturday : 9:45 am to 1:15 pm

Even though, the India Public will have to wait and watch as what will be the actual outcome after 30th December.. They are reluctant to believe anything by the present situation.

 

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

 

India listed Eight foreign firms for supply of note paper

Eight foreign firms listed for supply of note paper

The Letters of Intent along with the precise quantum of orders to each foreign firm would be finalised soon.

currency-icon-1

The Remonetization drive — and the frantic printing of banknotes — has brought some Christmas cheer for some of the world’s largest currency paper suppliers. Over Thursday and Friday, principals of eight foreign firms were in Bengaluru to finalise bids for contracts of 27,500 metric tonnes of paper for lower denomination currency notes to be supplied to India from April-December 2017.

Company officials who were part of the tendering process at the head office of the Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) told The Sunday Express that first the technical, and then the financial bids of eight of the nine firms who were invited for the limited tender were examined, and orders finalised. The Letters of Intent along with the precise quantum of orders to each foreign firm would be finalised soon.

banknote-paper

The contracts have been finalised for printing currency notes mostly of Rs 10, Rs 20, Rs 50 and Rs 100 denominations, giving a clear signal that the Rs 2,000 and Rs 500 notes would be printed on banknote paper manufactured in India.

Some of the largest companies trading in banknote paper from Germany, Switzerland and Italy figure in the list of successful bidders, but the British banknote giant, De La Rue, was conspicuous by its absence. De La Rue had been supplying huge quantities of currency paper to India for decades, but in 2010-11 lost its security clearance after failing to meet some security parameters. It is understood that the company did not get security clearance from the Ministry of Home Affairs for the current tendering cycle due to the details of commissions that were paid by it to persons named in the Panama Papers, published by The Indian Express in April.

While details of currency paper contracts are not made public, The Sunday Express has learnt that the eight firms that will share the massive contract are Lanquart from Switzerland, Komsco from South Korea, Arjowiggins from France, Crane from Sweden, Goznak from Russia, PT Pura from Indonesia, Fabriano from Italy and Louisenthal from Germany. Representatives of all the firms were present in Bengaluru for the scrutiny of technical and financial bids.

rs-10-note-10-rupee-note

Although the order may not be the largest ever placed by India — paper for higher denominations of currency is now manufactured domestically — company officials say demonetisation, and the urgency to print new banknotes at the four currency presses, have resulted in the rush to place the high-volume order before the Christmas break.

Officials maintain that while some currency paper from foreign firms had to be airfreighted over the past few weeks, no such instructions have been issued to the firms selected for the current bids, and the consignments will be shipped as is done in the normal course.

Significantly, officials of the foreign firms say that the bidding in Bengaluru turned out to be highly competitive, and that the positive response from almost all the companies invited by BRBNMPL resulted in the price of the currency paper being almost 10% lower than the price fixed for the last orders placed in 2015-16.

 

 

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

 

World Bank Secretly Supporting Adani’s Carmichael Coal Mine

World Bank Accused of Secretly Supporting India based Adani’s Carmichael Coal Mine

2250

The World Bank has been accused of secretly funding a massive new Indian backed Queensland coal mine. But the back story behind this strange development goes far deeper – it began with a brutal attempt by President Obama to use US influence to defund fossil fuel resource development in poor countries.

Adani coalmine ‘covertly funded’ by World Bank, says report

The bank’s private sector arm is accused of subsidising loans that funded the Indian firm’s Queensland exploration bid.

Adani’s Carmichael mine has been “covertly funded” by the World Bank through a private arm that is supposed to back “sustainable development”, according to a US-based human rights organisation.

Adani Enterprises acquired exploration rights for Australia’s largest proposed coalmine in 2010 with a US$250m loan from banks including India’s ICICI, which was in turn bankrolled by the World Bank’s private sector arm, the International Finance Corporation, a report by Inclusive Development International says.

The report accuses the World Bank of using “back channels” to conceal its support for a company that “would have little chance of receiving direct assistance from the IFC”, which has a “mandate for sustainable development”.

ICICI was among six Indian banks that received US$520m from the IFC between 2005 and 2014.

This means the World Bank has exposure to the contentious Carmichael project, from which a growing number of Australian and overseas banks are shying away.

 

Back in April 2015, WUWT reported how an attempt by the Obama administration to push the World Bank into choking off finance for coal projects in the third world had backfired. China stepped into the breach, and used its enormous state resources to create a new bank, to provide the fossil fuel finance the Obama influenced World bank was no longer willing to provide, effectively sidelining the renewables obsessed world bank into international irrelevance.

Japan joined the coal rush, offering Japanese financial services as an alternative to the new Chinese Infrastructure Investment Bank. Japan added to the humour of the situation, by demanded the UN classify the Japanese financial offering as “climate finance”, on the grounds that Japan were financing supercritical coal plants. Japan wanted recognition for the difference between the reduced CO2 output of their supercritical plants, and the CO2 a traditional coal plant emits.

The sidelining of the World Bank was a catastrophic blow to President Obama’s attempts to influence international energy development, and a substantial loss of US influence and prestige on the world stage.

If these new accusations are true, if the World Bank did knowingly secretly finance the Carmichael Coal Project, my interpretation is that the World Bank has quietly ditched its alleged commitment to defund fossil fuel projects, and is now fighting for survival, secretly funding coal projects in an effort to claw back market share and international relevance from their upstart Japanese and Chinese rivals.

Adani coalmine ‘covertly funded’ by World Bank, says report

The World bank’s private sector arm is accused of subsidising loans that funded the Indian firm’s Queensland exploration bid

Adani Enterprises acquired exploration rights for Australia’s largest proposed coalmine  with a US$250m loan from banks including India’s ICICI, which was in turn bankrolled by the World Bank’s private sector arm, the International Finance Corporation, a report by Inclusive Development International says.

The report accuses the World Bank of using “back channels” to conceal its support for a company that “would have little chance of receiving direct assistance from the IFC”.. As per the private sources the company is heavily backed by Power Holders in New Delhi.

ICICI was among six Indian banks that received US$520m from the IFC between 2005 and 2014.

The Adani group is also embroiled in several Indian criminal investigations into possible fraud and corruption, including the alleged siphoning of money offshore through an invoicing rort and the alleged profiteering on imported coal through inflated valuations.

An Indian subsidiary of the Australian project’s parent company, Adani Enterprises, was accused by its own lawyer this year of fraud, illegal land purchases and other violations over a solar project.

Environmentalist are also concerned over the support to a company despite its Mundra coal plant and port being blamed in an Indian Ministry of Environment investigation for flouting public consultation requirements, and creating ecological and social harms, including air and water pollution, destruction of mangroves and curtailing the livelihoods of local fishers.

The Inclusive Development International report said Adani Enterprises’ sister company, Adani Power, received US$1.18bn in financial support from IFC “intermediaries” through loans, bonds and share issues.

 

sources:

World Bank Accused of Secretly Supporting Adani’s Carmichael Coal Mine

https://www.theguardian.com/environment/2016/dec/22/adani-coalmine-covertly-funded-by-world-bank-says-report

 

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

 

 

RBI Partially Rolls Back Rs 5,000 Order

RBI Partially Rolls Back Rs 5,000 Order

The Reserve Bank of India’s 60th Notification, on day number 43 of Demonetisation, since the date of announcement of Demonetization has partially rolled back an earlier notification that caused anger because it sought to restrict deposits of over 5000 rupees, in the process creating more confusion.

The earlier notification, issued on December 19, allowed the deposit of over 5000 rupees in bank accounts by citizens only once, that too after a “satisfactory explanation” could be provided to three bank officials.

 rbi-reu

Wednesday’s rollback makes an exception for fully KYC compliant customers. But it means that customers without fully compliant KYC norms will still have to give a “satisfactory explanation”.

KYC stands for ‘Know Your Customer’, a process through which banks obtain information about the identity of customers with accounts so that they cannot be misused. A proof of identity and a proof of address – Aadhar, license, Voters ID card, Passport or nrega card – have to be supplied for account verification.

Wednesday’s notification means that customers with fully compliant KYC accounts will be exempt from the order that states that deposits of over Rs 5000 could only be made once till December 30 and that people making such deposits will have to provide a “satisfactory explanation” to three bank officials as to why they didn’t deposit these amounts earlier.

This rule caused widespread anger and confusion all round, with people questioning why they had to provide an explanation for depositing their own money in excess of Rs. 5000. People cited legitimate reasons for waiting till the last week of December to deposit money. They also cited Prime Minister Narendra Modi’s promise in his November 8 address that people could deposit bank notes till December 30.

The decision follows widespread criticism of the guidelines, with people saying the Prime Minister as well as the finance minister have asked people not to throng the banks as they have time till December 30 to deposit invalid notes in their accounts.

Yogendra Yadav told CNN News18 that an “unfair and stupid” order had been rescinded. “It erodes the credibility of the RBI further,” he told the channel in a phone interview.

Another decision by the government taken on Wednesday has added to the all round confusion enveloping digital payments.

The Government passed The Payment of Wages (Amendment) Bill, 2016 to remove a provision that made employers seek written permission from employees before paying salaries by cheque or crediting them directly to bank accounts.

Demonetisation: Yogendra Yadav’s special explanation mocks RBI and Modi government

Several people including politicians and media had criticised RBI for the previous decision. Attacking the RBI decision, Swaraj Party leader had said, “It is not just about an unfair and stupid order. It is about compromising trust in Reserve Bank. Remember, currency a piece of paper that works on turst.”

It’s not just abt an unfair&stupid order
It’s abt compromising trust in Reserve Bank
Remember, currency a piece of paper that works on turst https://twitter.com/_YogendraYadav/status/811075208958226432 

Below is the explanation Yogendra Yadav had given while depositing cash in a bank:
c0geka2veaajnpr
 Then comes Arvind Kejriwal’s tweet
c0iykbnuaaqosys
We’ve told earlier People are loosing trust in Government, The RBI and the Banks in India.
sources:

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015

Demonetized Indian Banking| What is this 5000 Rupees Deposit Rule

Demonetisation:  The new Rs.5000 rupees deposit Rule

Daily Labourers in India were accepting the demonetised currency as they can deposit them in banks till December 31.

Else in this cash crunch no where to go. 

In between The RBI on Monday has issued fresh guidelines on depositing demonetised high value currency notes of Rs. 1000 and Rs. 500. Here is what you need to know:

What is the new rule from RBI?

The Reserve Bank of India on Monday announced that deposits of more than Rs. 5000 of demonetised currency note will be allowed only once, till December 30. So if you have Rs.10,000 with you in Rs.1000 or Rs.500 notes, you will have to take it to the bank in one go. After that, you will not be able to make any more deposits of demonetised notes till December 30.

Does this mean I cannot deposit more than once?

If you have less than Rs. 5,000 in demonetised notes in your hand, you can spread it over any number of deposits.

Are there any new procedures for depositing more than Rs.5,000 in demonetised notes?

You will have to present your case of why you didn’t deposit them earlier, in the presence of at least two bank officials. If the officials find your response satisfactory, it will be accepted. But your bank account may be scrutinisied later at the time of audit.

What if I deposited Rs.4000 and later found two more Rs.1000 notes?

If the combined values of your deposits exceeds Rs. 5000, you will be subjected to the same procedure as when depositing more than Rs.5,000 once. And you will not be able to make any more deposits of demonetised till Dec.30 after that.

But how will a bank know if I have deposited Rs.4,000 earlier elsewhere?

Every time you deposit demonetised money, the bank alerts the CBS (core banking solution). If you deposit Rs. 4,000 as old notes today , you can deposit only Rs.1,000 more in old notes without being asked to give an explanation.

What is this KYC compliance clause?

The one-time deposits of over Rs.5,000 can be made only to KYC-compliant accounts. KYC, or Know your customer, is a business process to verify the identity of bank customers. Banks collect a valid identification proof and address proof and PAN card details of its customers periodically. Those who haven’t submitted these documents are KYC-non compliant. Such customers can deposit only up to Rs. 50,000 in demonetised notes.

I don’t have time to visit a bank. Can I send someone on my behalf?

Yes, you can. You have to provide suitable authorisation to the bank and the person depositing the amount should show approved identification. You still have to send a written explanation as to why you didn’t make the deposit earlier.

I have more than Rs. 5000 in cash. But they are not demonetised currency notes…

There is no restriction on currency notes that are legal tender.

I have unaccounted money worth more than Rs.5000 and I am planning to disclose it under the new declaration scheme. What should I do now?

These restrictions do not apply to deposits made under the government’s new income declaration scheme, the Pradhan Mantri Garib Kalyan Yojana 2016. You have to deposit 25 per cent of total declared unaccounted money to the Pradhan Mantri Garib Kalyan Yojana, a scheme with a four-year lock in period with no interest.

I lost track of all rules related to demonetised money. A quick recap please.

Government has demonetised Rs. 1000 and Rs.500 currency notes with effect from November 8 midnight. Though the government had earlier made some exemptions, these notes have ceased to be legal tender and are not being accepted anywhere from December 15. If you still have them, they can be deposited in your accounts in nationalised and private-sector banks till December 30. 

After that, the Reserve Bank will continue to accept these notes directly till March end after getting a declaration.. 

But there is a question  “who’s going to believe this”.

People have lost their trust in the Government, RBI and the Banks ironically in the matter of finance.

Read further:
Indian Government has No Clues of Black Money in India
https://arresteddevelopments.wordpress.com/2016/12/16/indian-government-has-no-clues-of-black-money-in-india
Cashless Monetary System means Absolute Power over you
https://arresteddevelopments.wordpress.com/2016/12/17/cashless-monetary-system-means-absolute-power-over-you

arrested-ds-160x32

https://arresteddevelopments.wordpress.com

Along with thanks and compliments to the sources for the shared data

Creative Commons Copyright © Arrested Developments 2015