Vowing to carry forward the war against corruption and black money post—demonetisation, Prime Minister Narendra Modi today said the Government will soon operationalise a strong law to effectively deal with ‘benami’ properties and this was just the beginning. PM Modi defended the frequent changes in cash deposit and withdrawal rules after demonetization, seeing these as a sign of the Government being sensitive to people’s feedback as also a response to the ways being devised by the “corrupt” to thwart the Government’s drive.
In his monthly 'Mann Ki Baat' radio address to the nation, PM Modi on today said businessmen using digital payments would receive IT benefits. He also stressed that cashless transactions had increased by 200-300% in the past few days.
FM Arun Jaitley today clarified that there is no intention of the Government to impose tax on long-term capital gains from share transactions. Referring to the speech by PM Modi in Mumbai the previous day, the FM said the interpretation being given to the speech was not correct.
Restrictions on withdrawal of cash from banks and ATMs are likely to continue beyond Dec 30 as currency printing presses and RBI have not been able to keep pace with the demand of new currency notes. As the 50-day deadline for completion of demonetisation process draws near, there is a growing consensus among bankers that the restrictions on withdrawal would have to continue even in the New Year so as to maintain orderly working at the banks. “Most of us think that the withdrawal limit would not be completely withdrawn. It is a possibility that it could be relaxed if the cash situation improves, ” said a senior PSB official.
The RBI has refused to allow access to minutes of meetings held to decide on the issue of demonetisation of Rs 1,000 and Rs 500 notes announced by PM Modi on Nov 8. Responding to an RTI application filed by activist Venkatesh Nayak, the RBI refused to disclose the minutes of the crucial meetings of Central Board of Directors on the issue of demonetisation citing section 8(1)(a) of the transparency law.
IDFC Bank today announced the nation-wide launch of aadhaar-linked cashless merchant solution that uses a retailers' smartphone to enable digital payments. Aadhaar Pay, launched by the Government today, has been developed by IDFC Bank in association with Unique Identification Authority of India (UIDAI) and the National Payments Corporation of India (NPCI), the bank said in a statement.
Demonetisation has created an enormous opportunity to channelise public savings into productive assets, and consolidating data of SMEs and corporates can provide banks with the necessary information to assess the credit-worthiness of borrowers, CII said today.
Foreign investors have pulled out a massive $3.5 billion from the capital market this month so far following a rate hike by the Federal Reserve. Most of the outflows by the foreign portfolio investors or FPIs have been witnessed in the debt markets during the period under review.