The RBI governor also stated that Rs 9.2 lakh crore has been introduced into the economy in the form of new notes since November 8.
The Reserve Bank announced today that it raised the withdrawal limit at ATMs to Rs 10,000 with immediate effect, though the weekly limit remains Rs 24,000
In an interview with The Wire, the former central banker talks on the infeasibility of executing demonetisation while raising concerns over re-starting the working capital cycle of small and medium businesses.
In a letter to RBI governor Urjit Patel, the employee’s union says that the image of the central bank has been dented beyond repair.
Rising non-performing assets and sluggish economic growth have led to a decline in corporate borrowing, inhibiting the anticipated lending bonanza to companies from banks after demonetisation.
Deputy governor R. Gandhi’s claims on the quantity of low-value notes pumped into circulation are false. The giant release of small change is just another attempt at spin.
The Modi government’s claim that the public supports demonetisation ignores the localised agitations and dissenting voices from across the country.
Reddy also said that the problem of black money cannot be eliminated through demonetisation alone.
The latest rules create a window for NRIs and Indians who travel abroad to change their last 500 and 1000 notes, but what about everyone else?
The Sena also said that the BJP is living in a fool’s paradise if they think that demonetisation has ended the menace of black money
People have lost their jobs, small businesses are closing down and the agricultural sector has been hit hard as a result of demonetisation. The RBI must increase the supply of cash to curb further fallout.
India’s economy had some positives in 2016, but issues like joblessness, lower agricultural incomes and the demonetisation aftermath remain matters of concern.
Demonetisation has proved that it’s time we revisit what Gandhi and his colleagues had to say about public welfare and the importance of decentralisation.
More stonewalling from the ‘Reserved’ Bank of India
On Saturday evening, Modi addressed the country for the second time after the demonetisation announcement. Here’s what he had to say.
2017 will need to see less of the carrot and more of the stick in order to persuade India’s institutions to prepare against an ever-increasing number of cyber security threats.
Refusal to disclose reasons for the demonetisation decision does not stand up to legal scrutiny, RTI experts say.
Calculations based on the meagre numbers the RBI has released prove that the government’s aim of extinguishing black money has fallen flat.
The penalty for holding more than ten old notes may include financial fines and a jail term of up to four years in certain cases.
It is dangerous for the government to seek financial stability at the cost of people who entrust their money to banks.
The official line seems to be, ‘Show me your money but I won’t show you my records’.
When the RBI signed off on demonetisation, its central board had the lowest number of directors in 15 years and only three truly independent directors.
The gap between what the apex bank claims it has disbursed and what, according to its own earlier numbers, it could possibly have disbursed, has now grown to over Rs 66,000 crore.
Doctored videos, false news and WhatsApp hoaxes. India has it all and cannot afford to be silent during a debate on how best to fix fake news.
Customers with non-KYC accounts will be subject to the stiff conditions imposed by the RBI on December 19 for depositing old notes.
Either parliament has been misled by the government or claims about the supply of new currency by the RBI are flawed.
Deposits in excess of Rs 5,000 will only be credited once, and that too after the depositor is questioned as to why the notes weren’t deposited earlier.
The greater and longer the pain of demonetisation, the greater is the degree to which one of its key premises is undermined.
Though India will be affected and the rupee may weaken, comforting levels of foreign exchange reserves will likely soften the blow. Emerging economies with high external debt measured in US$ will suffer more.
The apex bank has repeatedly said that there are enough new notes available in the banking system. But the numbers they are providing show a different reality.
Despite the hardships being faced by the working class due to the note ban, the rhetoric of fighting corruption and targeting the wealthy means they are bearing the pain in silence.
The RBI’s decision to support the note ban and its flawed implementation have exacted a price from the economy in general but the poor in particular.
Even with the money presses running at full capacity, it won’t be till July 2017 before the full value of the cash withdrawn by demonetisation is replaced.
The impact of the contractionary demand shock triggered by the note ban will gradually radiate from cash-intensive activities to virtually every sector of the economy.
Everyone knows why the previous governor of RBI had to leave. Urjit Patel understands the circumstances under which he assumed charge but has still risen to the occasion.
Nineteen billion notes of Rs 100, 50 and 10 denomination released so far, says the RBI. Would engaging foreign printing presses have helped with the Rs 500 and Rs 2,000 note supply crunch?
Perhaps the biggest casualty of demonetisation has been the central bank’s loss of autonomy as it has allowed the government to ride roughshod over it.
By avoiding questions on when the situation will normalise and suggesting that the growth forecast doesn’t take into account the transitory impact of demonetisation, Urijit Patel is shunning responsibility.
RBI kept the short-term lending rate unchanged, saying it is adopting a ‘wait and watch’ policy to see the effect of demonetisation.
The original assumptions underlying the decision remain unclear, but it seems to be causing considerable harm. Although popular right now, demonetisation may not end up being a good bargain.