Skip to main content

SURGICAL STRIKE ON BLACKMONEY

By
Currency notes of Rs.500and Rs.1,000 denomination that are currently in circulation will no longer be legal money and cannot be used as medium of exchange from Tuesday midnight,as Prime Minister Narendra Modi in a surprisemoveclampeddownonblackmoney as well as counterfeit notes in circulation.Instead,the Reserve Bank of India(RBI)will issue new Rs.500 and Rs.2,000 currency notes on Thursday.“The arrangement of buying and selling through existing Rs.500 and Rs.1,000 notes will not be available.These will be just worthless piece of paper,”Modi said in his hurriedly announced address to the nation on Tuesday evening.
Existing currency notes of Rs.1,2,5,10 and 100 denomination as well as coinscontinue to be legal and could be used for buying and selling.
Economists said the move would immediately press a pause button on transactions that were planned in black money.On the other hand,ordinary transactions such as buying of vegetables from the local market might be hit for a month, they added.Also,commodity prices might move up as black money supply get schoked.However,in a series of tweets,the Prime Minister’s Office said realestate prices, health care and higher education would come with in the rech of thec ommon man, thanks to this move.
According to one estimate,the cost RBI is incurring for printing a Rs.1,000 note is Rs.3.17,while a Rs.500 note costsRs.2.50.
The PM said the steps taken by the government would strengthen the hands of the common citizens in the fight against corruption,black money and counterfeit notes.
To enable people dispose of their existing Rs.500 and Rs.1,000 notes,Modi announced these could be deposited in banks and postoffices between November 10 and December 30 by showing ID proofs.
Business Standard New Delhi,09th November 2016

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more