Wednesday, November 9, 2016

Very Interesting on Removing Rs 500 And Rs 1000 As Legal Tender

19th Jun 2017: http://www.huffingtonpost.in/2017/06/17/how-i-knew-demonetisation-was-going-to-be-a-disaster-right-from_a_22417571/?ncid=NEWSSTAND0010

Updated  on May 29, 2017: This is a telling description of Modi's performance: http://www.thehindubusinessline.com/economy/india-second-most-complex-tax-jurisdiction-deloitte/article9714344.ece

Updated on May 11, 2017: http://www.livemint.com/Opinion/WUuVPSzFeYteHE7AKmphNM/Making-sense-of-Modinomics.html - Interesting summary

Updated on Feb 23rd 2017: http://www.livemint.com/Politics/RGZgD70N5ogk88Q8dwTNgO/Income-Tax-dept-to-launch-second-phase-of-bank-account-scrut.html

Updated on Feb 1st 2017:
A very nice article: https://scroll.in/article/827887/understanding-demonetisation-why-theres-a-war-on-cash-and-you-are-in-the-middle-of-it and http://www.financialexpress.com/opinion/how-has-india-fared-since-2016-what-tax-data-tells-us-about-the-state-of-the-economy/525606/

Income tax department asks taxpayers to verify their deposits online: http://www.livemint.com/Industry/PWNo4r01CdQcYafliQcnlM/Tax-department-asks-taxpayers-to-everify-deposits-post-demo.html

http://economictimes.indiatimes.com/news/economy/policy/banned-notes-what-jaitley-revealed-is-important-but-what-he-hides-is-crucial/articleshow/56953396.cms -  Some number crunching

Updated on Jan 18th 2017: 
https://qz.com/886094/silently-indias-supreme-court-has-set-off-a-chain-of-events-that-could-torpedo-narendra-modis-demonetisation-move/
The gentleman now strikes against gold: http://www.ap7am.com/lv-240877-spotlight-modis-surgical-strike-on-domestic-gold-holdings.html. Is he going to ask every woman to show what she is wearing or what she is hiding under her pillow or open up every locker? And dig under every tree? Another article: http://timesofindia.indiatimes.com/india/No-tax-on-jewellery/gold-purchased-out-of-disclosed-income-Finance-Ministry/articleshow/55724734.cms

We have already unearthed lots of black money based on the November 8th 2016 announcement. And created enormous mess in the life of people. Let's see where we go with the gold announcement..

Look at that: http://www.financialexpress.com/india-news/it-rejects-declarations-rs-2-lakh-crore-rs-13000-crore-revises-ids-amount/463770/ A family of 4 deposits 2 lakh crore. Huh, what?

http://scroll.in/article/821113/in-one-stroke-demonetisation-has-shaken-the-trust-our-monetary-system-is-based-on

Unfortunately the country's economy has not been made cashless nor is there any immediate push to make the economy cashless. The plan to introduce Rs 2000 note makes it obvious. Now people can horde those notes.

Look at all the gas agencies or hospitals or booking offices of trains, buses etc and see how much cash they deposit at the banks. Have we tried to minimize cash usage?

The vegetable sellers with their push carts plied their wares today without taking cash. They made me a debtor. Far better to have accounts receivable than let vegetables rot.

As on Nov 12th morning after reading the morning papers I understood this: That a lady could not be cremated in north India because cash was not available. Another man in Triplicane, Chennai had huge difficulty in getting his daughter married because cash was needed everywhere from flower vendors to beauticians and cards were not accepted and the lines outside & inside banks are  too long even on 12th morning. Trucks have come to a stop in Tamil Ndu because truck drivers do not have the new currency nor cards. Gives us an idea where cash is still king and professions which are beyond the realm of income tax.

Apparently the plan has fallen apart: http://indianexpress.com/article/blogs/pm-narendra-modi-demonetisation-note-recall-narrative-fallen-apart-4406642/

Another view of this: http://www.livemint.com/Opinion/uzvIE84KGXy1xvp06pTazM/Demonetization-is-a-hollow-move.html

A traveling salesman's diary here: http://www.livemint.com/Opinion/pN22OadikDCzoRcrB87UxH/A-travelling-salesmans-diary-in-the-days-of-demonetisation.html

A rather unfortunate fallout of the issues with lack of cash availability in ATM's long queues in banks is the fact that the government is trying to find more avenues to reach cash to the common man (disbursing thru petrol pumps) and having more establishments accept old Rs500, 1000 notes instead of getting more people and establishments covered though debit cards or electronic payments. Imagine if we had succeeded in the latter... We would have largely got rid of cash.. Now that has to wait. 

Interesting articles on this subject:



A friend sent me this:





An approximate translation:
A person in the street asks another for directions: 
Where is the bank?    It's a kilometer away. Can I walk or do I need to hail a taxi?    :@. Just stand behind me in the line.
Another image in a lighter vein: only if you can read Tamil. https://scontent-sin6-1.xx.fbcdn.net/v/t1.0-9/15055716_771632739656880_8057270732405090431_n.jpg?oh=89d8ddf2b74c76f147b3210c4708dfe6&oe=588773A0 

A MNC company gets hit: https://scroll.in/article/826796/a-ceos-tale-how-demonetisation-halved-the-profits-of-a-cashless-multi-national-company

Additional reading:
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