CURRENCY SWAP: 1 lakh cr done, 13 lakh cr to go?

sbiThe country’s biggest bank State Bank of India saw nearly Rs 40,000 cr deposited by the public in its branches in the first two days of the ongoing currency swap.

A total of Rs 1,666 cr worth of notes were exchanged.

Under the ongoing currency swap, bank customers can get up to Rs 4,000 worth of new currency notes in exchange for old currency from banks and post offices.

Any extra money they need to convert has to be deposited. Once deposited, they can withdraw Rs 20,000 over two days.

Compared to the first day, there was a decline of 20% in the amount deposited in the second day (today).

However, the total cash exchanged increased on the second day to 943 cr from 723 cr on the first day.

SBI’s number — 40,000 cr — indicates that the total amount deposited by the public overall would be in the range of Rs 1 lakh cr.

According to the Reserve Bank of India, the total amount of money held in the form of 500 and 1000 rupee notes in circulation in India is around 14.2 lakh cr.

If we estimate the total amount of money deposited in the first two days as Rs 1 lakh cr, it would imply that about 7% of the total 500 and 1000 rupee notes have come back for exchange.

If, by the end of December, only 70% of the total notes outstanding comes back for exchange, that would mean that 30% of the money held in the form of 500 and 1000 rupee notes was black, and was destroyed by its owners.

However, if all 14.2 lakh cr worth of notes comes back into the banks for exchange, it would mean that either there was no black money that was held in the form of currency notes, or that the black money holders found effect ways of turning that money into ‘white’ money.



Supreme Court to consider banning charge-sheeted candidates from polls The Supreme Court has today agreed to hear a petition that seeks to ban anyone who has been charge-sheeted in a criminal case from contesting elections in India.BJP leader Ashwini Upadhyay, who is among one of the most prolific filers of public interest litigation in India, is among those who had filed such petitions seeking disqualification of such ...
COLUMN: Why it’s hypocritical for Rahul Gandhi to accuse Narendra Modi of taking money from co... One of the interesting aspects of the current accusations and counter accusations around the alleged funding of BJP's 2014 Lok Sabha campaign by corporate houses is the sheer hypocrisy of it.Let's see why.According to third-party figures, an estimated Rs 23,000 cr was spent by candidates and political parties on the 2014 general election.Assu...
Mining baron Sekhar Reddy arrested after Income Tax raids Sand miner Shekar Reddy has been arrested, two weeks after the seizure of crores of rupees and gold in an income tax raid. The arrest has come hours after Income Tax officials conducted a raid on Tamil Nadu's top bureaucrat chief secretary P Rama Mohana Rao at his home.It was speculated that Rao's home was raided on the basis of information obtained from...
Rahul Gandhi’s gives ‘earthquake evidence’ on Modi After keeping the nation waiting for 10 days, Rahul Gandhi today dropped his 'bomb' on Narendra Modi that he had promised would 'cause an earthquake'.Gandhi said a company based in Uttar Pradesh has written "that Modi has taken money from them multiple times over six months."Quoting income tax investigation reports, Gandhi said: "They have writt...
Demonetization: RBI removes ‘explanation’ requirement for KYC accounts The Reserve Bank of India has responded to widespread criticism of its directive to collect 'explanations' from those depositing more than Rs 5000 by clarifying that this directive will not apply to bank accounts with proper documentation."On a review of the above, we advise that the provisions of the above circular at sub para (i) and (ii) will not appl...
Demonetization: Modi announces bumper prizes; 15 lakh users to get 1,000 rupees Narendra Modi announced several 'prize schemes' to promote cashless transactions.Under the schemes announced today, there will be two sets of prizes for consumers and another for small merchants.Under the first scheme, any customer who uses any electronic form of payment, including wallets and debit cards, will qualify for a 'lucky draw' of Rs 1,000 ...
Demonetizaton: Govt places limits on last minute deposits The Reserve Bank of India said that any person who continues to hold old notes of 500 and 1000 rupees in bulk will get only one more chance to deposit them into bank accounts and will also have to provide an explanation for the delayed deposit."Tenders of SBNs in excess of ₹ 5000 into a bank account will be received for credit only once during the remain...
Demonetization: Swaraj India says political parties could become money laundering centers Swaraj India party today said the Income Tax department's decision to continue to provide immunity to political parties from having to reveal their sources could turn them into money laundering centers.According to Section 13(A) of the Income Tax Act, 1961, if you have registered a political party, you can deposit any amount of money after opening an acc...
UPA-era procurement delays kept us back – BSNL CMD BSNL Chairman and Managing Director Anupam Shrivastava blamed delays in procuring key equipment for the present backward condition of the state-owned telecom operator.The company, which was once profitable and dominated India's telecom sector, has run up huge losses in the last several years, while private telecom companies have reaped tens of thousands ...
BSNL JE 2016 recruitment frozen after complaints to DoT – CMD Shrivastava BSNL Chairman and Managing Director Anupam Shrivastava said the recruitment of Junior Engineers (JEs) into the telecom company has been frozen by the Department of Telecom on the basis of complaints."It is being held up by the Department of Telecom... due to complaints," Shrivastava said in response to questions by candidates who have qualified in the ex...
DEMONETIZATION: Wholesale Price Inflation falls to 3.15% in November The annual rate of inflation, based on monthly WPI, stood at 3.15% for the month of November, 2016 as compared to 3.39% for the previous month and -2.04% during the corresponding month of the previous year.The fall is largely expected due to the impact of the withdrawal of high-denomination currencies during the month.Build up inflation rate in the ...
Domino’s Pizza starts cashless facility for phone orders Domino's Pizza has started cashless payment facility for those who order by phone as well."Post demonetization, we have seen many customers choosing to order online. Consumers coming to our restaurants to dine in or carry out are able to pay With Credit caras or Wassets. However, there are many customers who still order with a phone. It is for these cust...
Taxes will be made “more reasonable” in cashless India – Jaitley Taxes in India will be made more reasonable as more and more transactions switch to the cashless mode, finance minister Arun Jaitley said."As more and more transactions are made cashless, they will come under taxation.. (and with this) taxes will be made more reasonable, both direct and indirect," Jaitley said today.The finance minister was giving ou...
After pumps, Bata stores to provide cash withdrawal The story has been withdrawn by the company.
Modi says people who deposited others’ money may get to keep it all Opening a new front in the fight against black money, Prime Minister Narendra Modi today said people who were forced or tricked into depositing other people's money into their bank accounts may be allowed to keep the entire sum for themselves."Do not touch that money," Modi said, addressing a rally in UP."I am exercising my brain to come up with a pl...