oppn parties Latest Deposit Restrictions Must Be Taken Back

News Snippets

  • Centre to sell 29.5% in Hindustan Zinc at an expected price of Rs 38000cr
  • Stocks remain negative on Wednesday: Sensex loses 303 points to 53749 and Nifty 99 to 16025
  • IPL: RCB beat LSG by 14 runs and end their dream run. Rajat Patidar scores a brilliant 112. RCB will take on RR to decide who goes through to the finals
  • Delhi Additional district judge Nikhil Chopra says there is no legal right for people seeking to worship deity inside Qutab Minar, says it survived 800 years without worship so "let it survive like that"
  • Punjab chief minister Bhagwant Mann sacks state health minister Vijay Singla over corruption charges. Singla was later arrested by the ACB
  • Protestors burn the house of Andhra minister P Viswaroop and MLA Satish Kumar over renaming of Konaseema district as B R Amberdkar Konaseema
  • Gyanvapi: Varanasi district judge decides to first hear the 'maintainability' plea filed by mosque management
  • Delhivery and Venus Pipes shares list at premium of 10% and 8.7% respectively even when market sentiment was down
  • In a bid to cool edible oil prices, Centre allows duty-free imports of 20 lakh tonnes each of crude sunflower oil and crude palm oil per annum this year and next
  • Centre caps sugar exports to ensure availability of stocks in the domestic markets to cool prices
  • Stock markets get the jitters as RBI signals rate hike and government moves in to control inflation: Sensex tumbles by 236 points to 54052 and Nifty goes down by 89 points to 16125
  • IPL: Lucknow Super Giants to meet Royal Challengers Bangalore in the first Eliminator today. Winners to take on Rajasthan Royals for a place in the finals
  • IPL: Sensational David Miller blasts three sixes off the first three deliveries of the last over to help Gujarat Titans beat Rajasthan Royals by 7 wickets and enter their maiden IPL final in their debut year
  • While joining US-led IPEF, PM Modi says it will bring "peace and prosperity in the Indo-Pacific region"
  • Mamata Banerjee says Bengal government will not lower VAT as the excise cut by the Centre will already reduce state's revenue by Rs 641 cr
US President Joe Biden says India-US ties to be among "closest on earth" //////// China and Russia send bombers near Japan even as Quad leaders were holding meetings there /////// Gujarat Titans enter IPL finals in style, beat Rajasthan Royals by 7 wickets
oppn parties
Latest Deposit Restrictions Must Be Taken Back

By Sunil Garodia
First publised on 2016-12-20 17:56:12

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.
When things move logically, people support even those initiatives of a government where they know that it has grossly miscalculated and is causing them immense hardships. Demonetization was one such move. Despite suffering the pain of not being able to withdraw their own funds from bank accounts, even in limits set by the government, the people were somehow largely supportive of the move as they thought it would lead to lessening of black money, corruption and terror funding. But with its latest restrictions that further amounts in banned currency notes can be deposited only once in bank accounts and any such deposit over Rs 5000 would entail enquiry as to why it was not done earlier, the government has lost a lot of public support for demonetization.

When demonetization was announced, the window for depositing the banned notes was given from November 10 to December 30. Now it was up to the people whether to deposit all their cash at one go or use the ample time to deposit it in tranches. Not all people are comfortable with going to the bank with a large amount of cash. If someone has Rs 5 lakh in cash, he would maybe deposit it on five occasions in batches of Rs 1 lakh each instead of risking it all at once, especially when he hears that rowdies roam near banks to loot people coming to deposit their cash. Also, banks were overburdened from day one and he would wait for queues to get shorter. Rules are being changed too frequently, giving demonetization a feel of something being done on a trial and error basis by a government that does not know what it is seeking.

Further, since the government is using big data mining to identify people who have deposited more in their accounts than their past transaction history allows, there is no need to restrict deposits. Also, since the I-T department is issuing notices to those who are depositing over Rs 2.5 lakhs (in some cases even to those depositing below this amount), it would be better to allow everyone to deposit what they want and then catch the tax evaders or avoiders. In any case, these restrictions are an invite for bank officers to go the corruption route and demand money from depositors for allowing them to deposit the funds in excess of Rs 5000. It also makes people lose faith in the RBI and the government. The government should immediately take back the latest restrictions and shift the bureaucrat who suggested them to the backwaters. Robert A Heinlein had said “Government! Three fourths parasitic and the other fourth stupid fumbling.” This government is turning out to be both parasitic and fumbling in equal measure.