Flipping hell.
India politics thread
- Thread starter Shiva87
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They aren't tax free. They just have exemptions if they follow conditions. They need to maintain books, have their accounts audited and compulsorily file a return. Most political parties barely do scams with their fund anymore fearing the backlash.
Donations aren't exempt per se. Its recipient details needn't be disclosed if the receipt is above 20k. But it's not as easy to do so to convert black money. As I said, election commission is pretty straightforward when it comes to parties' accounts and any small issue will cause ECI to create a big issue over it. That's only the parties. If a person receives it from his supporters it's fully taxable aggregate donations exceed beyond 50k.
In India companies are very difficult to mess around with. For them contributions to parties are limited to 5% of the profits earned. Depreciation rates in India are monitored by the income tax department and our personal rates cannot be adopted to compute tax. For instance buildings may be charged 20% deprecation in our books but tax act allows only at 5% so it has to be recomputed.
Most of the scams happen in Trusts, which aren't bound by a lot of restrictions companies are. But to get a recognised trust (as per the tax act) is very difficult. Trusts are banned from receiving anonymous donations (which is taxed at a flat rate of 30%)
In Sydney right now. Tried to convert my Indian rupees to AUD, and three different currency exchange places told me they are still not dealing in Indian rupees after demonetisation because of lack of cash. 
You won't get anywhere going after political parties. They will never shell out the same amount of cash. What's so flipping shocking about it? I'd much rather see psu banks get healthy which translates to millions getting loans for their daily businesses.
In Sydney right now. Tried to convert my Indian rupees to AUD, and three different currency exchange places told me they are still not dealing in Indian rupees after demonetisation because of lack of cash.
I wouldn't convert any rupees if I were you.
Not to forget the fall in interest rates on all deposits.
Discarding everything that is wrong with @entropy's post, it would also mean fall in lending rates so not much to look at there. Second, drop in purchasing power in the short term would also mean fall in borrowing which coupled with increased deposits would lead to further fall in profits. If millions getting loans is his emphasis, then crippling the liquidity and forcing SMEs out of business might not be the best approach in doing so.
Why? They are new notes. I want to convert them so I could spend them in Australia.
Whatsapp fake news
So, I think it is fair to say now that the implementation has been a complete and utter disaster. I initially supported the idea but some things have become clear to me since it was introduced
- RBI and the Govt either did not do a proper impact analysis of the move or they simply did not care. It is increasingly looking like a political gamble done by Modi rather than a serious administration decision.
- If Modi was actually serious about curbing black money, he needed to go after the political parties or at least bring their funding under RTI. But that obviously can not and will not happen, so this whole exercise is moot. India today did a great sting operation which exposed all major parties bar BJP, openly acting as agents of converting banned cash into new one despite the amount running into several crores. Nothing major happened after the same.
- I talked to my friends from Baniya class. They did not face any difficulty in converting any cash they had lying around. But the business is badly down since the move. Be it the wood, crusher, pipes.. any kind of business. None of them believe that the business will normalize till the market has enough cash flowing again. People ordering on white money will not happen in their opinion. This means that parallel economy of black money will be established again, it may not be as big as before but it will be established.
- So many businesses going through a downturn will result in significant number of people losing their jobs or source of income. This will eventually hurt BJP and Modi. The UP elections might just be coming one month too late for BJP.
- RBI and the Govt either did not do a proper impact analysis of the move or they simply did not care. It is increasingly looking like a political gamble done by Modi rather than a serious administration decision.
- If Modi was actually serious about curbing black money, he needed to go after the political parties or at least bring their funding under RTI. But that obviously can not and will not happen, so this whole exercise is moot. India today did a great sting operation which exposed all major parties bar BJP, openly acting as agents of converting banned cash into new one despite the amount running into several crores. Nothing major happened after the same.
- I talked to my friends from Baniya class. They did not face any difficulty in converting any cash they had lying around. But the business is badly down since the move. Be it the wood, crusher, pipes.. any kind of business. None of them believe that the business will normalize till the market has enough cash flowing again. People ordering on white money will not happen in their opinion. This means that parallel economy of black money will be established again, it may not be as big as before but it will be established.
- So many businesses going through a downturn will result in significant number of people losing their jobs or source of income. This will eventually hurt BJP and Modi. The UP elections might just be coming one month too late for BJP.
Pleaae feel free to tell me what's wrong with my post.
So the entire population needs to be put under stress so that PSU banks can recover from their faulty loans? Hmmmmm
Please start with what you wrote on loans against what I posted. Second, the problem with PSU banks isn't that they don't have enough deposits, it is because they have plenty of non-performing assets (meaning they have bad loans). Correcting that is very hard and at least for me, corrective measures can be tough for their consumers (because whether you agree or not, public sector banks are meant to provide for sectors that won't be touched by private banks, so one must expect a bit of extra risk to be incurred by these banks). But adding liquidity in the banking system is definitely not the right way.
There is no corrective measure for NPAs. You said it so yourself. Majority of them will only be written off in the near future. In a country like India where PSU's control a huge portion of banking and peoples savings, yes strengthening them is the right way forward. A huge influx of cash will help them do what they do best, start giving out loans more freely. This move also gives both the banks and customers a much needed opportunity to move away from working entirely in cash and towards a quicker and more efficient system.
Not sure why people are moaning about the move being entirely PR. If anything, it will hurt Modi most in the upcoming elections. Given how high his approval ratings were, he would have happily cruised through the upcoming elections.
The public support, even now, is in favor of the move. Even that friends I quoted, still attest to be Modi supporters. This move was a political gamble in the sense that it will either cost BJP the UP elections or win it. Given the short memory of Indian electorate, it will have zero to little impact in next general elections.
Les hope so. Given the nature of negative journalism nowadays and short term thinking I wouldn't be surprised if people think Rahul Gandhi is the way forward.
HT just released the youth survey. This was their finding for choice of political icon by the young in the country
51% Modi
14% Kejriwal
2-3% Rahul Ghandi
Says it all. Only way RaGa ever gets to be PM is if Congress somehow stumble to power and thrust him in that role.
Thank feck for that. If anyone is interested they should check out Bibek Debroys town hall on NDTV. He answers the questions pretty well inspite of the negative crap NDTV insist on peddling to the masses.
I don't think you have correctly interpreted what I meant to say. You don't strengthen PSUs by handing them cash, inadequate liquidity or (lack of) deposits was never their problem as you say yourself, it was NPAs which will continue to be so in the future. You don't achieve anything of note by increasing their liquidity in the short run. Let's consider why: on the supply side of liquidity, any excess liquidity in the banking system is only likely to be temporary because once banks are availed with new cash, people will withdraw their savings and within a period of time, amount of cash in the banking system will not have increased significantly. On the other hand, owing to the amount of "black money" that was successfully wiped out (if any), the money supply in the economy will actually have declined compared to before. So in no terms is it certain that PSUs or any other banks for that matter will have enhanced savings with them and even if they did, it basically achieves nothing. On the demand side of credit, I have already replied to this in post #1287.
Identify these people and ban them from the next election. ffs.
The banks are not just receiving cash but also new customers. Let's not forget, the banks now can track how much money, sources of income for each of its customers. This translates to more accountability when it comes to paying taxes and brining in more money for the govt. putting aside the argument of cash deposits, they can now move away from old in-house banking techniques towards a better and more efficient which was long overdue.
Once again for the third time I reiterate, deposits are not the problem with the PS banks; and now you are now shifting goal posts. Improving efficiency of banking system or accountability of paying taxes didn't require squeezing 86 percent cash from the economy or compromising the independence of RBI from Central government.
Yeah..hindsight is a lovely thing. Alas, the world doesn't work that way. I never said deposits are the issue. I said this influx of cash helps them to breath easy and do more business(which is always a good thing). Btw, this isn't the end all argument and neither am I shifting any goal posts. Initiatives of this scale have several benefits and not just a handful. But if you are someone who cannot see the benefits of digital banking, then it is a waste of time even discussing the issue with you.
Nearly 950 Million Indians Don't Have an Internet Connection, Finds ASSOCHAM-Deloitte Study
Yet the govt wants to force digital transactions down everyone's throat.
Yet the govt wants to force digital transactions down everyone's throat.
Poor coolredwine. He is trying soo hard to troll but no one seems to bite.
And I have explained time and again why this won't be so. Also in your initial post you claimed the move was for helping out PSU banks and my debate was on this topic not on going cashless. Please try to follow your own line of reasoning in a discussion before jumping from one set of conclusions to another. And also please point to the post where I've said digital banking is a bad thing or there aren't any benefits to it. If you presume that introducing digital banking requires sucking out liquidity completely from the system then it is a waste of time even discussing the issue with you.
Yeah..merry Christmas to you too!
Fake new notes worth Rs 26 lakh seized in Gujrat.
And they said that demonetisation will completely remove fake currency. In Modi's very own Gujrat, counterfeits are freely available. Seems the new currencies are 'very hard' to counterfeit
http://m.deccanherald.com/articles....om/content/588524/fake-notes-worth-rs-26.html
And they said that demonetisation will completely remove fake currency. In Modi's very own Gujrat, counterfeits are freely available. Seems the new currencies are 'very hard' to counterfeit
http://m.deccanherald.com/articles....om/content/588524/fake-notes-worth-rs-26.html
Typical bhakt
Turning a blind eye and making fun of the poster instead of addressing the facts mentioned in @coolredwine post
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This move looks more idiotic with every passing day. I genuinely thought things would start to normalise by now..
I finally got to see the new ₹500 note.
I like it better than the old one.
The ₹2000 limit is a big pain though
I like it better than the old one.
The ₹2000 limit is a big pain though
Finally got the 500Rs note.
Looks like bank authorities are done with giving 500 notes in bulk to big shots.
Looks like bank authorities are done with giving 500 notes in bulk to big shots.
Move is not idiotic. If I have to summarize the issues and troubles, I would say that Govt underestimated the alternate routes and tricks people will come up to convert black money in old currency to new. Some of the steps, like replacement of 4k should have been 1 time only.
If they have intent, they can still catch some frauds, apart from those already coming to light. People who have replaced money by distributing it to others, mainly those who will go unsuspected, can be traced back. Some scams have been taken care at Bank level though with Bank manager assisting in it. I am assuming that can be traced in some way but will be tougher.
What's there to troll? I have presented a fact. You have been going on and on with your thoughts and moods and theories and hypothetical scenarios.
The execution and planning have to be a part of the move.
The idea behind it might have been decent. The execution has been anything but.
Ideas are dime a dozen without proper implementation.
I was talking about idea there but yes execution and planning is part of move. Part of planning was trade-off with secrecy but still some aspects of alternate routes should have been closed. I hope they continue the drive against black money even if this move may not give desired result.
It is funny though to see some detractors coming up with examples which show corruptness of people in country as reason to criticize move.
I assume that when no of chain snatching incidents go up in your area, you blame the thieves for lack of morals.