The central bank defended its decision on a PIL filed by petitioner lawyer Rajneesh Bhaskar Gupta challenging RBI's decision. The PIL argued that it lacks the independent authority, as per the RBI Act, to make such a decision.
Appearing for the bank, Senior Advocate Parag P. Tripathi urged before the court that the matter be heard on a later date as the bench has already reserved its judgment in a similar PIL by petitioner lawyer Ashwini Upadhya.
"This is a currency management exercise and not demonetisation. The bench has earlier reserved judgment in a matter. I am suggesting that let that order come and we can have it after that. Most of what is being contented would have been dealt with it there. It is the pure nature of economic policy," Tripathi said.
The petitioner has contended that the withdrawal of the banknotes after 4-5 years, with a specific deadline, is deemed "unjust, arbitrary, and contrary to public policy".
"This is beyond the jurisdiction of the RBI. There is no provision in the RBI Act saying that RBI can take such a decision independently. I would have understood if the central government had taken the decision," the petitioner said.
After hearing the parties, the court posted the matter for next hearing on May 29.
The parties were asked to submit a short note in the matter.
"Counsel for the RBI has informed the court that another petition with the same subject matter has been heard. He prays for listing on Monday. List on Monday," the court said.
The PIL says: "It is respectfully submitted that the RBI, as Respondent no 1, does not possess independent power under the Reserve Bank of India Act, 1934, to direct the non-issue or discontinuance of any denominational value banknotes. Such power is exclusively vested with the Central Government, as stated in section 24 (2) of the RBI Act, 1934."
The PIL highlights that the circular in question fails to indicate that the decision to withdraw the banknotes has been made by the central government.
It argues that the RBI has provided no explanation other than the "Clean Note Policy" for taking such a significant and arbitrary step of withdrawing the banknotes from circulation, without adequately considering the potential repercussions for the general public.
Referring to the provisions of the RBI's clean note policy, the PIL points out that damaged, counterfeit, or soiled banknotes of any denomination are typically withdrawn from circulation and replaced with newly printed ones.
"However, in the present case, only the Rs 2,000 denomination is being withdrawn within a specific deadline, without any indication of the RBI introducing a similar replacement banknote into circulation," advocate Gupta further emphasises in the PIL.
The PIL raises concerns over the impact of withdrawing the Rs 2,000 banknote, claiming that small vendors and shopkeepers have already ceased accepting it.
It further argues that the RBI has not provided any clarification regarding the benefits to either the RBI or the national economy from withdrawing the Rs 2,000 denomination. The PIL also drew attention to the well-known hardships faced by citizens during the demonetisation of Rs 500 and Rs 1,000 notes in 2016.
"It is respectfully contended that the Rs 2,000 denomination, printed in 2016 and thereafter, remains in excellent condition with robust security features and does not necessitate withdrawal from circulation, be it under the Clean Note Policy or any other grounds. Furthermore, the Clean Note Policy specifically mandates the withdrawal of damaged, counterfeit, or soiled banknotes, rather than the withdrawal of all intact banknotes," Gupta states in the PIL.
The PIL also highlights that a significant amount of public funds have been utilised for printing the Rs 2,000 notes, which will go to waste as a result of their withdrawal.
"It is respectfully argued that there is a possibility that the RBI's challenged notification/circular may induce anxious citizens to queue up at banks across the country during the hot weather of May, June, and July. This situation could lead to the loss of numerous lives, similar to the period of demonetisation in 2016 when over 100 citizens lost their lives due to the incorrect policy decision of demonetising Rs 1,000 and Rs 500 notes by the Central Government. Now, a similar scenario is unfolding in the name of the RBI's Clean Note Policy, despite the absence of any statutory authority," Gupta argues.
As per SBI’s latest notification, special arrangements have been made for exchanging the big denomination currency notes with small denomination notes at around 890 branches across Odisha.
SBI’s Bhubaneswar Zone Chief General Manager (CGM) Chandrasekhar Sharma informed that Rs 12000 crore is currently available for exchanging the higher denomination notes. Further, he also informed that if the bank requires more currency for exchange, RBI will make the arrangements within an hour.
“Apart from Bhubaneswar, we have made special arrangements in multiple locations. Currently, we have Rs 12000 crore notes in smaller denominations of Rs 100, Rs 200, and Rs 500.”
Informing about the rules for exchanging notes, Sharma said that one person can exchange 10 notes (Rs 20000) at one time. If the bank is not crowded, then people can exchange more Rs 2000 notes multiple times.
“I would request our customers and all others that there is no need to panic. Adequate currency notes are available. Anyone can come at their own convenience. People can either exchange the notes at branches or can deposit in their accounts or deposit in machines. All banking systems are available and prepared to exchange notes,” said Sharma.
“I am assuring the entire population of Odisha that they will face no inconvenience,” Sharma added.
Furthermore, Sharma said, “No documentation or identity proof is required for exchanging the currency notes. Anyone can go to any branch to exchange notes. However, people should prefer bigger branches as small branches have a limit.”
A five-judge constitution bench headed by Justice S.A. Nazeer and comprising Justices B.R. Gavai, A.S. Bopanna, V. Ramasubramanian, and B.V. Nagarathna pronounced the judgment on a clutch of petitions challenging the Centre's 2016 decision to demonetise currency notes of Rs 1,000 and Rs 500 denominations.
Pronouncing the majority judgment, Justice Gavai said that the decision-making process cannot be faulted merely because the proposal emanated from the Central government.
Justice Gavai added that there was consultation between the Centre and the RBI for a period of six months.
"We hold that there was a reasonable nexus to bring such a measure, and we hold that demonetisation was not hit by the doctrine of proportionality," said the majority judgment.
Justice Nagarathna said examining Section 26(2) would not mean to sit over the merits of demonetisation and thus it is well within the lakshman rekha as drawn by this court.
The bench said there has to be great restraint in matters of economic policy and the court cannot supplant the wisdom of the executive with its wisdom. Justice Nagarathna differed from the majority view, and delivered a dissenting judgment.
Justice Nagarathna differed from the majority judgment on the point of powers of the Central government under Section 26(2) RBI Act. The detailed judgment in the matter will be uploaded later in the day.
During the hearing, the Centre had told the Supreme Court that the November 2016 decision to withdraw legal tender of Rs 500 and 1,000 currency notes was one of the critical steps in the series of transformational economic policy steps and this decision was taken after extensive consultation with the RBI and advance preparations.
The Ministry of Finance, in an affidavit, said: "The withdrawal of legal tender character of a significant portion of total currency value was a well-considered decision. It was taken after extensive consultation with the RBI and advance preparations".
It further added that demonetisation was also a part of a larger strategy for combating the menace of fake money, terror financing, black money and tax evasion. "The notification issued on 08.11.2016 was a major step to fight the menace of fake currency notes, storage of unaccounted wealth and financing of subversive activities", it said.
The Ministry of Finance, in an affidavit, said: "The withdrawal of legal tender character of a significant portion of total currency value was a well-considered decision. It was taken after extensive consultation with the RBI and advance preparations".
It further added that demonetisation was also a part of larger strategy for combating the menace of fake money, terror financing, black money and tax evasion.
"The notification issued on November 8, 2016 was a major step to fight the menace of fake currency notes, storage of unaccounted wealth and financing of subversive activities," it said.
The affidavit said the reform agenda of transforming the nation through a series of economic policies and changes were intended to strengthen the formal economy and nudge large sections of the informal economy to become part of the formal economy and reap its benefits.
"The withdrawal of the legal tender character was one of the significant steps in the enhanced formalisation of the economy with the aim of expanding opportunities for the millions living on the periphery of the economy," said the affidavit.
The government said the withdrawal was one of "the critical steps in the series of transformational economic policy steps".
The Finance Ministry added, "It was an economic policy decision exercised in accordance with powers conferred by an Act of the Parliament (RBI Act, 1934), in conformity with the provisions of the said Act and was subsequently affirmatively taken note of by the Parliament in the Specified Bank Notes (Cessation of Liabilities) Act, 2017".
The government emphasised that the withdrawal of the legal tender character of the SBNs (specified bank notes) was by itself an effective measure and was also a part of a larger strategy for combating the menace of fake money, terror financing, black money and tax evasion, but not confined to them alone.
The ministry said the informal labour force was predominantly cash-based. "Through digitalisation, mobile and internet connectivity, opening bank accounts and payment of subsidies through banking and other formal channels, government policy aimed at integrating them into the formal financial system and eliminating their reliance on cash transactions," it added.
The government claimed the number of fake currency notes and their value came down significantly, both in terms of the detection in the banks and seizures by the security agencies.
The affidavit said, "The overall impact of the withdrawal of the legal tender character of the SBNs on economic growth was transient, with the real growth rate being 8.2 per cent in FY 16-17 and 6.8 per cent in FY 17-18, both being more than the decadal growth rate of 6.6 per cent in the pre-pandemic years."
It further added that the volume of digital payment transactions increased manifold from 1.09 lakh transactions of value Rs 6,952 crore in the entire year 2016 to more than 730 crore transactions of the value of more than Rs 12 lakh crores in a single month of October 2022.
The Finance Ministry' response came on a batch of petitions being heard by a five-judge constitution bench challenging the November 2016 demonetisation decision. In the previous hearing, the top court had asked the government to file its detailed response in the matter.
The affidavit also enumerated a series of steps especially post 2014, including the creation of the Special Investigation Team in 2014, the Black Money and Imposition of Tax Act 2015, the Benami Transactions Act 2016, the information exchange agreements and changes in the tax treaties with select countries, the Income Disclosure Scheme, and enactment of the Fugitive Economic Offenders Act 2018.
The government said all possible measures were taken to mitigate inconvenience to the public and reduce the disruption of economic activities after the decision. The top court is likely to take up the matter next week.
As the hearing commenced, a constitution bench headed by Justice S A Nazeer wondered if the matter survives for consideration at this stage.
Solicitor General Tushar Mehta, appearing for the Centre, submitted that for all practical purposes the matter does not survive for consideration. However, the case can be examined as an academic exercise, he said.
Responding to the submission, the bench said, "A five-judge bench for academic exercise when we are already burdened with such a large amount of pendency."
"We will fix it for hearing on October 12. We will examine if it has become academic and if it can be heard at all," the bench, also comprising Justices B R Gavai, A S Bopanna, V Ramasubramanian, and B V Nagarathna said.
The top court was hearing a batch of 58 petitions challenging the Centre's November 8, 2016 decision to demonetise currency notes of denomination of Rs 500 and Rs 1000.
On December 16, 2016, a bench headed by then Chief Justice TS Thakur referred the question of the validity of the decision and other questions to a larger bench of five judges for authoritative pronouncement.
It had framed various questions in the reference order to be adjudicated by the five-judge bench which includes whether the notification dated November 8, 2016, is ultra vires provisions of the Reserve Bank of India Act, 1934 and does the notification contravene the provisions of Article 300 (A) of the Constitution.
The three-judge bench had then said that assuming that the 2016 notification has been validly issued under the Reserve Bank of India Act, 1934 whether it is ultra vires Articles 14 and 19 of the Constitution.
"Whether the limit on withdrawal of cash from the funds deposited in bank accounts has no basis in law and violates Articles 14,19 and 21", the bench had said.
It had said whether the implementation of the impugned notification(s) suffers from procedural and/or substantive unreasonableness and thereby violates Articles 14 and 19 and, if so, to what effect.
The top court had framed various other questions and said that keeping in view the "general public importance" and the "far-reaching implications" which the answers to the questions may have, "we consider it proper to direct that the matters be placed before the larger bench of five judges for an authoritative pronouncement".
Options are available through which you can get ‘cash for cash’ deal and improve your financial condition.
The Indian government had demonetised Rs 500 and Rs 1000 banknotes in November 2016. People across the country returned the demonetised notes to different banks before those got officially declared as ‘banned’.
However, many are left with such banned banknotes which are currently valueless in market. If you think so, think again!
You can make good money with the ‘cash for cash’ deal if you still have the old Rs 500 note banned back in 2016.
There are ways you can earn Rs 5000 to Rs 10, 000 in exchange of the old Rs 500 banknote. However, you need to fulfil certain conditions to hit the jackpot.
The Reserve Bank of India (RBI) prints all banknotes with a unique pattern as well as serial numbers. Though you won’t find any variation in the notes except the serial numbers, every note has its unique pattern. However, while printing the notes, some mistake occurs. Such errors while printing the currency makes it invaluable.
Check the serial numbers printed on the RS 500 banknote you own. In general, the serial numbers get printed on the notes twice at the corners. However, if the note has only one serial number printed on it, then it can fetch you up to Rs 5000.
Apart from that, look out for the edges of the note. If any particular edge of the note is larger than usual, you can earn Rs 10, 000 by selling the note.
Several numismatists who are fond of collecting such rare items, are likely to lock a favourable deal and you can earn good money. The rare items though are invaluable in trading, they can turn good money fetching option for you.
You need to access the best platform to showcase your item where credible buyers throng in search of such rare items.
Coin trading sites like Quikr and Coinbazzar can help you find potential buyers. You need to create an account providing the credential as required. You need to specify your contact number as well as email ID for registration purpose and this will be the only means for the buyer to communicate with you.
After you register yourself on the coin trading sites, click a few photos of the Rs 500 banned banknote and upload it on the site. Potential buyers will reach out to your post and contact you if interested in the item. You can bargain the deal amount as per your choice.
So, what are you waiting for! Search for the old banknotes and elevate your financial backup locking a favourable deal.
OPCC chief Niranjan Patnaik said members of the Odisha Congress will stage dharna in front of the RBI office opposing the demonetisation.
Commenting on the matter, BJP spokesperson Golak Mohapatra said the Congress is jealous with the achievements made by the Central government.
"The BJP government has achieved success in ease of doing business, bringing down inflation and other fields as well. As general polls are getting closer, the protest by Congress is a political drama only," said Mohapatra.
Bhubaneswar: At a time when prices of food items and manufactured goods are in no mood to calm down in India, bank transaction limits imposed by the Government of India due to Demonetisation has affected the children badly.
To fulfil their wishes to buy new clothes, a pair of shoes or dine out with friends, a child asking parents for some money gets discouraged as the Demonetisation is already taking toll on the family. In this scenario, holding a bank account with some balance can ensure a smile on the face of a child who can get the things he/she wants without putting much pressure on parents.
Banker Ramesh Chandra Khadanga said, “Besides, a kind of responsibility can be developed in a minor when he/she holds a bank account in his/her name. Understanding the value of money and judicious cash utilisation habit can be incorporated in a 10-11 year old with the advice by parents or elders to save a portion of pocket money in a bank account and spend as and when he/she feels to do so.”
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Khadanga added, “Therefore, to serve below 18-years-old of the country and instil savings mentality in them, banks are targeting minors as a separate customer segment and launching special plans for them. It seems to be a ‘catch them young’ plan for banks looking at the customised minor savings accounts.”
Minors can open a savings account under the ‘Pehla Kadam’ and ‘Pehli Udaan’ schemes of the State-run State Bank of India (SBI) which is one of the frontrunners to serve the minors of the country. While a child below 10 years old can have a joint account with parents under the ‘Pehla Kadam’, a minor above 10 years and can sign uniformly and hold an independent bank account under the ‘Pehli Udaan’.
Khadanga further stated, “Most importantly the photo-embossed ATM-cum-debit card provided by the bank to an account holder of a minor will give a sense of pride and responsibility. Undoubtedly, they will be the happiest one after swiping their own debit card to pay against shopping bills during a point of sale (POS) transaction up to Rs 5,000 in a month.”
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“As the internet banking and mobile banking facilities and passbook with favourite comic characters printed on it are provided by the SBI to a minor account holder under both the schemes, a child gets unlimited joy and pride of having a bank account of his/her own,” he pointed out.
Besides, cheque book and standing instruction for money transfer facilities are given by the nationalised bank, he added.
For a common man, ‘change’ in monetary parlance has always been a bittersweet experience. It’s a double-edged, nay multi-edged sword in both its deficiency and sufficiency.
However, the demonetization winter has benumbed some of its fangs.
In day-to-day life, change or small denomination currencies (both coins and paper notes) are an effective tactical weapon of mass procrastination, repudiation, rejection, revocation et al.
It is surgically used as short change in an exchange, negation in a negotiation, disdain in a bargain, repudiation in a transaction and coerce in commerce, and also at times, it manifests as a providential waiver as a favor.
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Most of us who are daily commuters in mass transport must have borne the wrath of the change. There is this curious case of a taxi driver or an auto rickshaw driver who harbours an unexplained dislike towards your destination. He tries to euphemize his denial, by quoting a price way off the range, asking you to arrange the change, leaving you deranged. He knows well, how to throw riders into your ride to get rid.
Moving on to a debtor –creditor relationship – where a payer judiciously camouflages lack of money and intent, through lack of change. The change is roped in into the tug of war between the payer and the payee and the slugfest continues to extract and detract.
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Holding on to change is also a problem for some – most popular of the excuses being its weight, heft, clank and its abrasiveness on the wallet, which is perennially under the duress of one’s bottom. Well, following demonetization, banks started handing out neatly polythene-packed bags of Rs 10 coins in exchange of old Rs 1000 notes. If you entered the bank with the thought of your stash of old notes weighing heavy on your mind, you stutter out of the bank with bags of coins weighing down your trousers.
And sometimes, the change or the lack thereof, comes as a surprise- at times pleasant and at times as a confectionery. In a hard fought bargain, ‘no change’ makes the deal for you. The largest denomination currency in your wallet acts a good humbling agent for a persevering seller who belligerently bows down saying – ok take it, but don’t make it a habit.
Also Read: Demonetisation on a lighter Note…
Talking of habit, it actually allows picking up one. The unorganized barter of candies and confectionaries of some sort for coins is more organized than one can imagine. Nowadays, it’s not at all surprising to see a container of candies flanking the cash box of a shopkeeper. Some have even made it a standard operating procedure to hand over a candy instead of change irrespective of whether they have change or not and in utter disregard to the taste and preference of the customers.
Demonetisation per se might not bring about a change in the manner change is dealt. But the ancillary movement towards online payment is seeing a change in pattern. It’s easier now to nail the change to even its second decimal with the click of a mouse.
The note, we so dote,
leaves an endnote, with gloat.
Money, money everywhere,
so copious, yet impecunious.
Never one would have imagined that bank notes could be capable of such extracurricular activities, had the government not got a missile-lock on them.
As soon as the news broke out, these soon-to-be obliterated Rs 500 & 1000 notes broke into the social media like a clown on stage, with histrionics, which are peculiar at best and pecuniary at worst. While some rasping their cacophonous swansong, others are basking in the glory of the new-found utility.
There is a high likelihood that a lot of 500 and 1000 currency notes will survive the ‘surgical strike’ by the government. Not every piece of paper will be pinned to the ground with its own epitaph penned on it. Like an untimely death, the notes will have lot of years left in them and like an unannounced school bell a lot of them could never make it to the bank in time – hence they still can be minted for adoption into our day-to-day lives in other non-pecuniary forms.
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Scribbling on bank notes was a glorified public nuisance for quite some time, but it became a bankers’ privilege after government intervened. Such cacographic impulses which can only be stirred by bank note can be cultivated once again and the public can be ushered back into the fold. There is so much promise here with all the liberty and the real estate of the note to play with. From scribbling one can regenerate to doodling, degenerate to squiggling et al. Use them as stick notes – missing, may be the carrot, stick they will.
Then there is the recreation of bimanual counting (hand counting). It fascinates a lot of people – a recent viral video also purported how much efficiency in the Indian banking system can be unlocked if the sleight of hands of cashiers can be improved. One went on to ponder whether it is the NPAs (Non Performing Assets) or the NPA (Non Performing Ambidexter) affecting the banking system. Well, with banking, one just could not tell!
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But with the obsolete notes, this faculty of finger aerobics can become household and the domestication of bimanual counting may go on to contribute to skill development, if not financial inclusion.
If one’s dealings were too transactional during its ‘legal tender’ age, there is equally no harm in developing an academic taste towards them in their illegitimacy. In notes there are lessons in linguistics, general awareness, graphology, cryptology, rudimentary arithmetic and of course, hide and seek.
Congress further alleged that old notes worth Rs 3,118.51 crore were deposited within five days in 11 district co-operative banks in Gujarat headed by BJP leaders.
Reports claimed that the Ahmedabad District Cooperative Bank, whose directors include BJP national President Amit Shah, received the highest amount of old demonetised notes to the tune of Rs 745.58 crore in just five days.
Corroborating this, Odisha Pradesh Congress Committee President Niranjan Patnaik in a series of tweets, stated, “Now that it is clear that demonetization was nothing but a money making exercise for the BJP. Now that the real intent behind inflicting this disaster called demonetization is exposed, it's clear that BJP knew well in advance about it. That's why, days before demonetization they used cash to buy land across India, including 18 districts of Odisha.”
The OPCC Chief even criticised CM Naveen Patnaik for praising the ‘disastrous idea’ of demonetisation instead of speaking for common man in the State.
https://twitter.com/NPatnaikOdisha/status/1010139338502561792
"In all of this, let's not forget what CM Naveen Patnaik did. Instead of speaking for common man of Odisha, he praised this disastrous idea, which was nothing but organized loot. Like always, the match was FIXED between BJD and BJP," tweeted Niranjan Patnaik.
Responding to the allegations of PCC president, senior BJP leader Prithviraj Harichandan stated, “Bharatiya Janata Party started buying land in several districts across Odisha way back in 2015. That had nothing to do with demonetisation as the process had started almost a year earlier. If Congress is raising such questions, it should look within the activities of the party. Congress is one party which has sown the seeds of corruption in this country.”
The party will stage protest for two hours -from 10 AM to 12 noon in front of the RBI Headquarters in Bhubaneswar and all nationalised banks in sub-divisions and blocks across the State, informed BJD General Secretary Sanjay Dasburma at a Press meet here. However, functioning of the banks will not be affected by the protest, he added.
Dasburma said while the adverse effects of demonetisation is yet to get over, the unavailability of cash has posed even greater financial crisis for the general public
"While people are still facing problems due to demonetisation, drying up of ATMs for the last 15 days has put the public in huge crisis," he rued.
"At a recent review meeting, Prime Minister Narendra Modi was informed that 2,21,700 ATMs across the country were paralysed till April 16. Besides, SBI's research bureau has estimated a shortfall of Rs 70,000 crore in the market," he said.
The cash crunch has affected people of all walks of life in the State, including farmers, students and women in the State, added the BJD leader.
It may be mentioned here that of late banks in Odisha have been facing severe cash shortage with many ATMs showing 'no cash' signboards for the past few weeks.
With deadline for exchange of demonetised notes already expired on December 30 last year, the temple trustees are worried about how to exchange the banned denominations.
Shree Jagannath Temple in Puri has received about Rs 18 lakh in demonetised notes as donations. However, as per temple authorities, the RBI has not taken a call to exchange the banned notes despite several pleas.
"We had urged the Reserve Bank of India to request the Finance Ministry for exchange of banned notes. However, the RBI expressed its inability saying that the rule is applicable for all," said Pradeep Kumar Das, administrator of Shree Jagannath Temple Administration (SJTA).
"We have kept the old denomination notes in our temple chest after the RBI refused to take up the matter with the Union government. We don't know what would be the fate of the notes. The Managing Committee may request the government or dispose of the notes in some other way," said Das.
He said they can't stop devotees from dropping old denomination notes in the temple 'hundi' (donation box).
Of the Rs 3-4 lakh that the temple receives in donations on an average every day, about Rs 3,000 to Rs 5,000 are in old notes.
"These notes can only be used if any further relaxation regarding exchange of banned notes is made in future," Puri Collector, Arvind Agrawal said.
Senior servitor Krushnachandra Khuntia said "The Centre should instruct the RBI to allow exchange of notes for the betterment of the temple."
Similarly, Tarini Temple of Ghatagaon and Majhighariani Temple of Rayagada have also received huge amount of demonetised notes.
"Banned notes worth around Rs 18 lakh have been received. These are kept in temple chest. We have appealed the State government to take a call on it," Tarini Temple accountant Akshya Behera said.
The Majhighariani temple authorities have collected around Rs 11.53 lakh in scrapped currencies. "We have written to RBI which is yet to communicate. On the instructions of RBI, we can act accordingly," said BH Janardan, superintendent of Majhighariani temple trust.
Interestingly, the Supreme Court had asked the Centre in July this year to offer one last chance to people still holding old notes with genuine reasons. The Centre, however, had declined to open another window for exchange of demonetised notes.
https://youtu.be/yqpY_dbUmps
Surprisingly, while the decision to implement the note ban was to push people to opt for digital transactions, residents of Nuagaon village who once were very enthusiastic on a cashless economy now seemed to have returned back to the old ways of paper currency payments. Even shopkeepers who used to seek online payments now accept currency more readily. Barring some youths and women SHGs who have access to smartphones and use e-wallets, credit and debit cards, others use cash for day to day activities.
"Banks had promised to roll out many initiatives and facilities for cashless transactions for us but we did not get it," a youth said.
Even in Bhubaneswar, at Unit 1 market, the busiest in capital city, people and shopkeepers love using paper currency more often than not. Businessmen say that since there is ample amount of notes in the market, people are preferring paper currencies rather than digital money.
At some places, PoS machines are lying defunct while other places which once displayed ads and signboards promoting 'cashless' transactions seem like they have outgrown the whole cashless idea.
On the other hand, as per information available with the SBI, the bank witnessed a manifold increase in cashless transactions in Odisha.
Also Read: Demonetisation Not One-Stop Solution: Jaitley
President of SBI Officers Association, Vivekanand Das, said there has been a rise of nearly 60 percent in cashless transactions. "Branches have been witnessing lower footfalls and PoS machines are being used more in places like shops, markets," he said.
As per information, while last year by October, 6,500 PoS machines were supplied by SBI in Odisha, their numbers have more than tripled to nearly 21,000.
Before demonetisation, while the SBI recorded monthly online transactions worth Rs 120 crore in Odisha, the figure has skyrocketed to Rs 180 crore.
The printing presses of RBI at Mysore and Salboni are geared up for designing and printing of the new Rs 1000 note. As the presses are currently engaged for printing of Rs 200 notes, people have to wait for the Rs 1000 note for few more days.
Also Read: 200 Rupees Note: Top 18 points All You Need to Know before using
Rs 1000 is set to narrow the wide gulf between the Rs 500 and Rs 2000 denominated notes. It will ease day-to-day operations and be beneficial to the common man.
The RBI presses have stopped printing of Rs 2000 note six months back but it will continue to exist. While the government had printed it for faster remonetisation, it decided to focus on lower value denominations.
Earlier on August 25, RBI had released Rs 200 and new Rs 50 notes that will only be available in the banks. ATMs will not dispense these new notes due to their size unless the machines and their cassettes are recalibrated.
Meanwhile, whether the new Rs 1000 notes will be available in ATMs or not and the security features it carries are not yet clear.
Official sources of RBI said, a new batch of banknotes with inset letter "A" in both the number panels, bearing the signature of Urjit R. Patel, Governor, Reserve Bank of India, with the year of printing '2017' on the reverse, are being issued while continuing to issue of Rs 500 denomination banknotes in Mahatma Gandhi (new) series from time to time which are currently legal tender.
The new notes are similar in all respects in design to the Rs 500 banknotes in Mahatma Gandhi (New) Series, which were notified on November 8, 2016.
“It will be confusing to gauge the authenticity of Rs 500 notes if the new design comes to market,” said Bhubaneswar based businessman Anupam Sahoo. “There should be proper communication about identifying the new notes from RBI as the frequency of change is very high,” he said.
(With IANS inputs)
"It was told that demonetisation would help bring back black money and end naxal and terrorist activities. The people across the country would like to know the impact of the demonetisation," BJD spokesman P K Deb said and demanded that the Centre clarify whether naxal and terrorist activities declined in the aftermath of demonetisation.
"Will the central government bring out a white paper on the subject and inform the people as to how much black money returned to state coffer?" he asked while speaking to reporters.
Accusing BJP of not doing "much" for the development of Odisha and country, he said "BJP says it will make Odisha its laboratory for welfare schemes. But the party should inform people of the state what it has done so far for the state."
Alleging that the BJP-led NDA had failed keep the promises made by in its manifesto before the 2014 Lok Sabha election, he said it had assured to create two crore jobs every year.
Going by such promises, it would have generated six crore jobs, including 30 lakh employments in Odisha. "We need a reply on this from the government," Deb said.
Targeting Union Minister Dharmendra Pradhan, Deb wanted to know how many young men from Odisha have got employment in the IOCL's refinery at Paradip and about the promise on the special category status for Odisha.
He also blamed for not hiking MSP for various agricultural produce despite its promises.
The BJD spokesman asked BJP to share information and status of the coastal highway project, central assistance and conversion of state highways into national highways in Odisha and non revision of coal royalty.
"We want the union ministers scheduled to visit the state in some days should answer the questions raised by BJD," he added.
As per sources, the police had approached regional Reserve Bank of India (RBI) office in Bhubaneswar on March 16 and asked them to exchange the money but the bank authorities turned down their pleas saying that the deadline for exchange of currencies was over.
“Old notes which were seized from various cases are lying with us, which we have been trying to deposit, but so far unable do so,” Abhimanyu Nayak SDPO, Baripada told newsmen.
“Seeking court’s permission for exchanging the cash took time and subsequently after that we were directed to deposit the amount at the RBI within the deadline of March 31. But when we sought help from the apex bank we were turned down,” Nayak said.
A combined amount of Rs 2.88 lakh seized through 9 different cases, comprising 185 numbers of Rs 1000 denomination and 207 number of Rs 500 denomination notes, are lying with the police.
Meanwhile, the police have said they would once again seek court’s help to sort out the matter.
Talking to media persons here on Friday, Income-Tax Chief Commissioner Shyama Prasad Choudhury said,” More than 1000 individuals and entities have deposited Rs 861 crore in various banks in Odisha, which includes one single deposit of Rs 32 crore alone. The depositors include individuals, companies and cooperatives who had not declared the money in tax assessment in previous financial years.”
Choudhury said, those who deposited above Rs 50 lakh have been bracketed under P (priority) 1 category and their deposits, sources of income, IT returns and financial transactions are now being scrutinised. Besides, another 3080 individuals made deposits in Rs 25 lakh-50 lakh and below Rs 25 lakh ranges which have been categorised as P2 and P3 respectively.
“The depositors have been asked to respond and give appropriate information on the source of income and deposits by March 31. If it is found that deposits were made from undeclared income, 87.25per cent of the deposits would be collected as fine,” said Sandeep Lakra, Additional Income-Tax Commissioner.
After demonetisation, the sources of income of 380 persons are under scanner of the IT Department. The concerned department has advised the depositors to contribute their unaccounted wealth in the Pradhan Mantri Garib Kalyan Yojna (PMGKY).
The government has decided that black money can be converted into white after deduction of 49.5 per cent tax if deposits are made under the scheme.
Addressing gathering at the Advantage Odisha-2017 conference here, Patnaik said, “We will connect every panchayat of the State with high speed internet in the next three years. This will help in boosting our aim of digital empowerment objective.”
Official sources said, the government aims to connect half of the 6,801 GPs by end of September.
Also Read: Odisha to use digital infra for swift service delivery: CM
Principal secretary, Electronics and IT, Pradeep Kumar Jena who too was present on the occasion said, “The Centre’s National Optic Fibre Network (NOFN) project, aiming to provide broadband connectivity to the GPs across the country, was suppose to complete the work in Odisha long back. But due to some reason or the other, Bharat Boradband Network Limited (BBNL) and its contractors have not at all started the work. But, going by the current pace of work, we hope we will be able to connect about 3,400 GPs with internet in 15 districts by September this year.”
“In the remaining 15 districts, they are not in a position to start the work. Odisha Power Transmission Corporation Ltd (OPTCL) has taken the responsibility to provide the panchayats with internet connectivity through overhead lines. In that case the wires will be laid along the electric wires on the existing poles.”
“By merely giving internet connectivity, the problem will not be addressed. Hence, all departments of the government are now coming up with various e-governance solutions so that the common man will be benefitted,” stated Jena.
Currently, almost all the panchayats of Jagatsinghpur and Mayurbhanj district are connected with internet, he informed.
The 2-day Advantage Odisha-2017, jointly organised by Odisha Information and Technology department, Orissa Computer and Application Centre (OCAC), ABP group aims to provide a collaborative platform for investors, IT companies, policy makers and industry leaders to exchange dialogues and ideas on entrepreneurship in context of Odisha.
Panda is booked under charges of tax evasion.
The house of Panda at Gouri Nagar in Bhubaneswar and another house at Anantapur under Soro block in Balasore district are being searched by the IT officials who had found evidences of more properties disproportionate to his known sources of income.
Panda was allegedly of evading Income Tax and converting black money to white. Acting on the complaint, the I-T officials had conducted simultaneous raid on the office of Panda in Khariar and his private residence at Gouri Nagar in Bhubaneswar. During the raid, it was found out that after demonetisation he had deposited money amounting to some crores in different accounts. Besides, he has not filed his income tax return in the current fiscal year.
Panda was not able to give an adequate answer about the source of such large amount of money, the reason behind his not filing I-T return and how he was able to produce two PAN cards in his name.
Bolangir: More than two-and-half-month after a sensational loot of cash to the tune of Rs 80 lakh from different bank ATM counters, the Bolangir Town Police has finally managed to nab the prime accused from Kolkata.
Police have also seized cash worth Rs 26,46,700 and 10 SIM cards from the possession of the accused who has been identified as Sunil Kumar Sahu.
Talking to the media persons, Bolangir SP Ashish Kumar Singh said the authorities of Axis Bank, State Bank of India (SBI) and ICICI Bank had assigned Tikeswar Pradhan and Sunil Kumar Sahu, employees of CMS company, on November 5 last year to deposit Rs 1.28 core in their respective ATM counters.
“The duo as usual deposited the said amount in these ATM counters on November 5. But the banks came to know about the shortage of Rs 80 lakh cash in their ATM counters on the next day and informed the police. During investigation, police came to know that the duo had gone to the ATM counters in Saintala, Badmal, Tusra, Belpada and Bolangir town in a Bolero jeep in the night on November 6. There, Sunil managed to withdraw cash using his and Tikeswar’s password,” the SP informed.
He further said as ill luck would have it, the Centre on November 8, announced demonetisation of Rs 500 and Rs 1000 notes two days after the incident.
“As police did not find damage in any ATM, it had its doubt on the CMS employees. After examining the CCTV cameras in these ATM counters, police found Sunil and Tikeswar as the culprits. Police later arrested Tikeswar and acting on his information, it later arrested Sunil from Kolkata on January 26 after tracking his mobile phone. Police have forwarded him to the court and detained his wife for further interrogation,” Singh added.
He also said after reaching Kolkata, Sunil managed to exchange the old notes with new notes with the help of a broker. “We are interrogating his wife to know about her complicity in this case. Besides, efforts are on to arrest the broker and recover the remaining amount from him,” he pointed out.
Police had earlier arrested Sunil’s brother-in-law and another CMS staff in this connection and forwarded him to court.
Bhubaneswar: Amidst falling revenue, the Odisha government’s focus will be on increasing revenue generation in the upcoming 2018 annual State Budget. At the pre-budget meeting of the Finance department with former finance ministers, representatives from industries, economists investors, RBI and Nabard officials, emphasis was laid on the areas through which revenue collection can be increased and to prepare the budget clubbing the plan and non-plan sectors together in line with the Union Budget format.
During the months of November and December of the current financial year, tax collection along with receipts from non-revenue sectors was considerably lower than the target.
Keeping in view lower revenue collection, experts at the meeting suggested tax increase in sectors like mining, business, land revenue and professional taxes. Moreover, suggestions were given to collect professional taxes from doctors, chartered accountants and lawyers.
“The size of the budget depends on the revenue collection. What we have observed is that revenue from own tax and non-tax sources have declined as compared to previous years,” said former Finance minister, Prafulla Ghadei.
“A lot of suggestions pertaining to increase in revenue were discussed in the meeting. For example a suggestion was given to levy professional taxes on lawyers, doctors and chartered accountants, who are currently exempted. Let’s see how far the State government accepts these suggestions,” said resident editor of The Business Standard, Dilip Satpathy.
On the other hand, the government has decided to merge plan and non-plan expenditures heads for the 2018 state budget in line with the union budget format.
According to sources, the 2018 budget size is likely to be around Rs 1 lakh crore. With the State government implementing the recommendations of the 7th Pay Commission, the exchequer will bear an additional burden of Rs 5,000 crore.
More emphasis is likely to be given to social sector, rural infrastructure, irrigation, education and health sectors.
“More focus should be given to agriculture and agri-based industries as there is need to create employment in these sectors. If employment is generated at rural level, then pressure will ease on urban areas,” said retired bureaucrat, Bibek Patnaik.
“The Union Budget is being tabled early following which the State government will place the budget. We will prepare the budget keeping in mind all the key variables including the demonetization move and GST,” said Finance minister, Pradeep Amat.
Bhubaneswar: In a show of strength, Congress party leaders including former Home Minister Shivraj Patil today held a demonstration in front of the Reserve Bank of India (RBI) office in Bhubaneswar protesting against demonetisation and alleged that the poor and middle class sections of the society are worst-hit even after 70 days of the note ban.
Despite the much-talked about rift in between OPCC chief Prasad Harichandan and senior Congress leader Niranjan Patnaik, both the leaders were seen sharing dais during the protest meeting in front of the RBI office.
Holding placards Congress leaders and activists shouted slogans and marched from Congress Bhawan to the RBI office. They demanded resignation of RBI Governor Urjit Patel alleging the apex bank has lost its autonomy due to intervention from the Centre.
Addressing the gathering at the protest meeting, Patil said, “We have rights to oppose the Centre’s decision to sanction loans at low interest rates to people who have already withdrawn Rs 8 lakh crore from banks and did not utilise them properly.”
Alleging economically-backward sections of the society are worst-hit due to the note ban, the OPCC chief stated, “Though the Centre had said the demonetisation would eradicate black money and decrease inflation in the country, someone cannot be stopped to withdraw their hard-earned money deposited in banks during exigencies such as for education and medical expenses.”
Also read: Second phase of anti-demonetisation stir from Thursday: Congress
Expressing similar views, Narasingha Mishra, Leader of Opposition said, “Without talking to experts, the Prime Minister on his own took the decision. Now, the demonetisation has hit the economy badly and in coming days situation will be grim.”
Refuting the charges, Basant Panda, BJP State president, said, “Those, who have made the country poor and brought shame to it, are making tall claims and playing political gimmicks.”
The Congress party has planned to launch nation-wide protests targeting the Modi government over demonetisation in between January 20 and 30.
Also Read: Excise revenue in Odisha declines on account of demonetization
However, the picture will be clearer by the end of the financial year, informed Padhi adding further that the Odisha’s treasury system has achieved notable progress.
The slump in the finances will improve in the coming 2-3 months, he added.
The party workers would stage demonstration followed by a protest meeting at Lower PMG here from 11 AM to 3 PM. TMC general secretary and MP Subrat Baxi, West Bengal Education Minister Patha Chatterjee, Water Resources Minister Saumen Mahapatra and Ramnagar MLA Akhil Giri are scheduled to participate in the protest.
Earlier on Monday, a group of TMC activists staged a demonstration in front of CBI office here protesting arrest of MP Sudip Bandyopadhyay in the Rose Valley ponzi scam. Besides, the court granted a four-day remand to MP Sudip after his six-day remand period ended on Monday.
As per the directions of the All India Congress Committee (AICC), the Odisha Pradesh Congress Committee (OPCC) today convened a meeting of the district presidents and office-bearers of the party in the State and prepared a detailed roadmap on these lines.
In a bid to highlight the problems faced by the common men due to cash crunch, the AICC has appointed 11 conveners. Each convener will be entrusted with the responsibility of three organisational districts.
Moreover, on January 9th, the Mahila Congress through various methods will carry out rally protesting demonetization. The party leaders from the State will also join the National-level protest that Congress has planned on January 11 in New Delhi.
“The common man is suffering due to demonetization move by the Modi-led Central government and the Odisha chief minister has also supported the move. Congress will launch protest against both the Central and State government,” said OPCC chief Prasad Harichandan.
In reply to Congress’ call, Odisha BJP chief spokesperson, Sajjan Sharma said, “People have realized that the step will help going forward and this trust has set in among the people of Odisha. This is the reason why there have been no protests despite facing difficulties. Congress has failed in understanding the needs of Odisha people.”
Also Read: Congress threatens to hurl egg at CM Naveen
However, Odisha in-charge BK Hariprasad and Opposition leader, Narasingh Mishra were not present in the meeting. Narshingh did not attend the meeting despite he was named in the list of conveners. Out of the party’s 33 organizational districts, 19 district presidents attended the meeting.
“The State in-charge has always been trying to keep the team together. It is under his direction that the Congress party has called this meeting. The Opposition leader is not a part of this committee and will attend the meeting of committee in which he is a member,” said OPCC Treasurer, Mohammed Moquim.
According to sources, as per directive from All India Congress Committee (AICC), the Odisha Congress will outline plans for its protest at districts across the state.
Apart from this, Congress is likely to prepare strategies for the ensuing panchayat polls at the meeting which will be attended by all district presidents, sources added.
Also read: Congress threatens to hurl egg at CM Naveen
Meanwhile, Congress chief whip Tara Prasad Bahinipati has alleged that no party MLAs have been invited to the meeting.
Bhubaneswar: Despite a slew of measures announced by Odisha government in its Excise Policy 2016-17 including slashing of deposit fee from Rs 80 lakh to Rs 20 lakh for setting of new units, no investors have evinced interest to establish new facilities in the State.
Official sources said, no proposals have been received by the Excise Department for installation of new units so far.
“Yes, we wanted to attract investors both from Odisha and outside. But so far we have not received any such proposal”, said Prasant Kumar Senapati, Excise Commissioner. He informed this on the sidelines of attending the inauguration of OSBCL’s (Odisha State Beverages Corporation Limited) cashless transaction here.
The official however was hopeful of getting proposals for installation of new breweries and distilleries in future.
To woo investors in liquor manufacturing sector the Odisha government in its Excise Policy 2016-17, which came into effect from 1 April, 2016, had slashed deposit fee for new units from Rs 80 lakh to Rs 20 lakh. Besides slashing manufacturing tax on beer, it had also reduced import fee for bulk import of beer by Rs 5 per litre.
Industry analysts however contribute this to the impact of liquor ban in neighboring Bihar. They observe apprehension of a similar ban in Odisha deterred the sector’s major players to invest in the State.
Also Read: BODI eyes Guinness World Record in organ donation pledging
“Broadly it is directly linked to liquor ban in Bihar in April last year. The investors might have thought Odisha may go Bihar way and in that case they will lose money”, said Prakash Kumar Dhal, an analyst.
He too opined that revenue from excise being one of the major contributors to the State exchequer, it might not follow Bihar as anticipated. This was evident when Excise minister Damodar Rout recently rejected the implementation of a Supreme Court order in Odisha which banned liquor shops within 500 metre of National and State highways across the country.
While the excise collection in 2015-16 was Rs 2568 crore, this time the government expected an additional Rs 800 crore. Analysts feel post demonetisation, the State government is unlikely to meet its excise revenue target as the move by the Centre has severely hit liquor sales in Odisha.
Out of the total 3,843 liquor shops in the State, 50 per cent have reported a decline in sales following banning of Rs 500 and Rs 1,000 currency notes from November 8 mid-night, official sources said.
Out of the major challenges the state government will have in the New Year is Panchayat elections which will be held in mid-February. The popularity of the BJD government will be put to question if it loses seats in the Zilla Parishads.
Besides, the ongoing rows relating to Mahanadi water sharing with Chhattisgarh government and Polavaram multi-purpose project with the Andhra Pradesh government will be a tough challenge for the state government. On Mahanadi issue, it will be a victory for the Odisha government if the Centre puts brake on the ongoing projects on Upper Mahanadi by the Chhattisgarh government. However, going by the developments of Polavaram project with the Centre declaring it as a national project and sanctioning Rs 1981 crore to the Andhra Pradesh government, the issue has certainly gone out of hand of the Odisha government.
Another challenge for the state government in the New Year would be revenue generation which was severely dented due to demonetisation drive by the Centre in November.
Despite a series of welfare measures, the state government has failed to bring down the poverty rate in Odisha especially in rural areas where 1.28 crore poor. The government has a tough challenge to substantially bring down the poverty ratio in 2017.
Besides, industrialisation will be an acid test for the state government in 2017. With the steel majors like Posco and ArcelorMittal backing out of Odisha, the state government hopes for a sizeable investment to the tune of Rs 2.3 lakh through the Make in Odisha conclave it had organised in December. It would be a real challenge for the government to ensure that the volume of investments as promised by the companies at the conclave is put into practice.
Another challenge the state government will have in 2017 is left wing extremism. Though Odisha had a major success against the Maoists with a major onslaught in October killing about 30 Red Rebels, the latter have come back with a vengeance killing innocent tribals in the district. Considering the sequence of events, the government will have to act tough to drive them out of the state.
This apart, incidents like Nagada child malnourishment, Japanese Encephalitis in Malkangiri and Dana Majhi carrying the body of his wife on shoulder had exposed the gross failure of the state government in providing health care services to the poor.
Taking a leaf out of such incidents, it is hoped that the state government will try its best to ensure that such incidents would not occur again in 2017.
At the same time, eyebrows were raised when huge amount of cash including new currency notes were seized across the country from people across different sections after the demonetisation.
Out of curiosity the Odisha TV’s investigation team undertook sting operations to understand how the new currency notes are being exchanged with the old ones through middlemen and the modus operandi of the group. Followings are the excerpt of the conversation between the middlemen and OTV team.
Agent 1: How much money you want to exchange?
OTV: Rs 50,000.
Agent 1: Why you are wasting my time? Give the money to anyone else or deposit in a bank? Why you have called me here?
OTV: How much you can exchange?
Agent 1: I can exchange Rs 30 lakh or 40 lakh old notes, if you wish.
OTV: Can you take 50% and give 50% to me for an exchange of Rs 50,000 old notes?
Agent 1: It’s wastage of time considering the proportion of amount we will get.
OTV: Where you will exchange the money?
Agent 1: You want that information as well while exchanging Rs 50,000 old notes. You want to exchange the old notes and I will get my commission, thereby the matter is over.
OTV: It would have been better had I know where you will exchange the amount?
Agent 1: Our acquaintance is the most important thing. Whenever you want to contact me you can do so and meet me.
OTV: In how many days you can exchange the money?
Agent 1: Within maximum 7 days.
OTV: In bank?
Agent 1: Obviously. Such big amount can be exchanged in a bank only. In a shop an exchange of this amount is not possible.
OTV: Where you will do the exchange?
Agent 1: If you have confidence in me, make the deal. It’s your wish. Otherwise you can go elsewhere. We have other possible waiting to make a deal. We just want our percentage. In your case also, we will take the commission. Many big shots are involved in the exchange racket as it is humanely impossible for a single person. The exchange will be done secretly. If you want to make a deal, meet me in the evening.
The OTV’s investigation team visited another broker as well to get a better clarity on the nexus. Here is the excerpt of the conversation -
OTV: How much cash you can exchange?
Agent 2: Rs 20-25,000
OTV: where you are exchanging?
Agent 2: In banks only we are exchanging the old notes. We have not opened a company or set up machines to print money at home.
OTV: Can you take me to the place where the exchange is being done?
Agent 2: As you will get the exchanged money in your bank account, what is the need for you to go the place where exchange is being done? Am I asking how you got so much money? You will get the exchanged amount and I will have my 20% commission. Earlier, many people have done exchanges. If you have made up your mind, make a deal or go elsewhere.
Also read: More than Rs 1.42 cr cash including new notes seized in Sambalpur; 8 held
The OTV team got inkling on functioning of currency notes exchange rackets when more than Rs 1 crore cash including new notes were seized from a liquor businessman in Sambalpur. Besides, Rs 31 lakh was seized in New Delhi and the case was transferred to the Income Tax department of Odisha region to probe.
Some locals of Muniguda of Rayagada district and Paleru in Andhra Pradesh brought to the notice of the OTV team about working of note exchange rackets in the area alleged money are being transferred to their bank accounts and signature is being taken on stamp paper from them saying that 20% commission will be given to the accountholder after March when the condition post demonetisation will stabilise.
Also read: Odisha faces acute shortage of Rs 100, Rs 500 notes: Govt
The investigation team of the news channel later came to know the racket is being operated from Bhubaneswar and Cuttack.
The middlemen to whom the OTV talked to were third and fourth layers of agent. Many influential persons are involved in the racket at different places and managing the illegal exchange of notes from the top.
Retail liquor business has declined by 40-50%.
Excise department sources revealed that from April 2017, online invoicing for retailers will be launched across the State. Through this initiative, retailers can directly buy stock from the depots online.
Also Read: Excise minister rules out blanket ban on liquor
The online service was launched from Chandikhole depot today.
“The sales have declined as compared to last year. With the launch of online services, retailer can generate online invoices. After depositing the money online, they can get their stock from the depot. They don’t have to come to the corporation to deposit money or bank drafts. It will save a lot of time as the processing of transactions will be instantaneous,” said Sethy.
Not only the Prime Minister, but also his Cabinet colleagues like Piyus Goyal, Arun Jaitely, Rajnath Singh had earlier appreciated Patnaik over the same issue.
Sundergarh MP and Union minister Jual Oram dubbed it as equation for floor coordination only. "If they back us in fighting corruption and black money for the greater interest of the country, what is wrong if a new equation arises for floor coordination only? But, in practical purpose, there is no chance of any equation in the field of election" Oram said.
BJD also commented in similar style. "The general election is two and half years away and it's too early to say on any sort of understanding", BJD spokesperson Pratap Deb said.
"CM has been appreciated for speaking his mind and his honest talk. It should not be linked to any other thing", he added.
Similarly, Excise minister Damodar Rout, who is also the vice-president of the regional party, said-"There is nothing wrong if BJD goes for any understanding with any party. But, now it will maintain equidistance from both BJP and Congress".
On the other hand Congress saw it as relation of co-wife. "BJP and BJD have a relation of co-wife. They were in a coalition earlier and now they are supporting each other internally. In future, they would also fight election together", Opposition chief whip Tara Prasad Bahinipati said.
Notably, Prime Minister Narendra Modi applauded Odisha and Bihar CMs for openly backing Centre's stand on note ban while addressing BJP MPs in New Delhi.
"Many parties have remained away from us on ideological ground, but some them have openly supported us in our fight against corruption and black money. I am greatful to Odisha CM Naveen Babu and Bihar's Nitish Kumar", Modi said.
Citing that the beneficiaries of various Central and State housing schemes are facing a lot of difficulties, Naveen informed the PM that the State government will not be able to achieve the target of completing 5 lakh houses by 2017 if the restrictions continue.
Also Read: Demonetisation crisis: Odisha seeks PM’s intervention
However, Leader of Opposition, Narsingh Mishra criticized the CM saying “CM is writing various letters to the PM just to show off. Why did he announce his support to demonetization move then? After supporting the move, why CM has to write letters seeking help? In the end the State government will say that we are trying, and have sent letters and will allege central negligence.”
BJP also slammed CM for just writing letters and not doing anything. “Our CM is a CM for writing letters. He has been writing letters every day, but is not being able to achieve much. He just wants to pass the buck to someone else,” said BJP spokesperson, Sajjan Sharma.
In a letter to Prime Minister Narendra Modi today, chief minister Naveen Patnaik said consequent upon demonetisation of high value notes and the restriction on District Central Cooperative Banks (DCCBs) to accept the Sustainable Banking Network (SBN) as deposits and for exchange of such notes, the DCCBs are facing a severe liquidity crunch. Besides, the currency chest branches of the commercial banks are not able to provide currency to the DCCBs to cope with the demands of the farmers at the PACS level for their Rabi operations.
The chief minister further said since PACS are treated at par with individuals in respect of drawal of funds from their accounts with the DCCBs, they are able to draw only Rs 24,000 per week from DCCBs to meet the credit requirement of their farmer members. As a result, they are unable to cater to the demand for crop loans, procurement proceeds and insurance claims pertaining to Kharif-2015.
He also informed the Prime Minister about the difficulties in transferring the procurement price of paddy from the apex State Cooperative Bank account to the farmers’ account held in different nationalised banks, cooperative banks and Regional Rural Banks (RRBs), if it is a Jan Dhan account. Such transfers were rejected in many cases causing enormous hardship to the farmers.
Keeping in view these difficulties, Patnaik urged the Prime Minister to take necessary measures by directing the concerned authorities to make adequate currency available to the DCCBs by the Currency Chest branches of the commercial banks which should be monitored by the Reserve Bank of India (RBI), Regional Office, to enable the DCCBs to provide crop loans to the farmer members and also pay their paddy procurement proceeds as well as insurance claims.
The chief minister also requested the Prime Minister to lift restrictions imposed on PACS to draw Rs 24,000 per week so that they can cater to the credit requirements of the farmer members.
Besides, he also requested the Prime Minister to allow the procurement dues of the farmers, which is being transferred from a government account, irrespective of the amount, to be credited to the farmers account without insisting on the time consuming process of KYC (know your customer) verification.
After holding a review meeting with the Food Supplies and Cooperative department officials, Dasburma informed that paddy procurement is underway in 9 districts through 255 Primary Agricultural Cooperative Societies (PACS).
The total value of the procured paddy is pegged at Rs 525 crores.
The minister also said that demonetization has affected paddy procurement in the State and the farmers are facing difficulties in withdrawing money.
“The paddy procurement process of the current Kharif season has begun in 9 districts and around 67 blocks and urban local bodies have participated in the process. 255 PACS are now involved in the process. Till now 3.58 lakh metric tonne worth of paddy has been procured from farmers. We have already paid Rs 409 crores to farmers online, while the total cost of the paddy procured is Rs 525 crore,” said Dasburma.
On the other hand, the Congress has criticised the double standards of the state government towards the farmers.
Also Read: BJP demands CBI probe into ‘faulty’ paddy procurement
Briefing media persons in Koraput, PCC president Prasad Harichandan said contrary to its commitment, the state government is not providing the minimum support price (MSP) on paddy to the farmers.
Condemning the arrest of two farmer leaders Akshaya Kumar and Seshadeb Nanda by the Commissionerate Police on Monday evening, Harichandan said while the state government claims that it gives top priority to the welfare of the farmers, on the other hand, it has taken repressive measures towards them with the illegal detention of these two senior farmer leaders.
Alleging farmers of the State are suffering due to the demonetisation, Congress chief whip Tara Prasad Bahinipati said during the zero hour there have been instances of vegetable distress sale in the State. “Situation has become akin to the Emergency period due to scarcity in cash availability in the market,” he claimed.
The demonetisation heat got some support from BJD MLA Samir Das in the House. Participating in the debate, Das said, “The BJP-led Central government has failed to tackle the situation after the demonetisation.”
Also read: No Bharat bandh, only protests over demonetisation: Congress
The Congress members demanded the Speaker’s ruling and a reply from the Odisha Finance Minister on the demonetisation.
Unable to run the House, Speaker Niranjan Pujari adjourned the proceeding of the Odisha Assembly till 3 pm.
Replying to a question raised by Congress MLA Chiranjib Biswal, he said, “Following the demonetisation, cooperative banks in the country were barred from accepting and exchanging the demonetized Rs 500 and Rs 1,000 notes. As a result, financial transaction in all cooperative societies in the state was discontinued. Taking note of the difficulties faced by the people in withdrawal of money from the cooperative banks, the Chief Minster had a written to Union Finance Minister seeking his urgent intervention. Even the Reserve Bank of India was also urged in this regard.”
Out of 4345 banks, 2076 are running with loss, Rout informed. He said farmers have bore the brunt due to halt in transaction in cooperative banks. Though they have been granted agriculture loans, they are not provided with the money due lack of hard cash in the banks.
He further said though the RBI has recently made some relaxation in the transaction norm for the cooperative banks, the latter is still running short of cash. However, there is some improvement in the situation and efforts are on restore normal functioning of these banks, the Minister added.
Addressing a press meet at Congress Bhawan here, he said the Prime Minister is squarely responsible for ruining the livelihood of 5 crore people due to demonetisation. He also referred to the death of 80 people while standing in queues before banks to exchange old currencies and held the Prime Minister responsible for their death.
Alleging that the BJP prior to the announcement on demonetisation had bought lands in various places across the country, Ahmad demanded a probe by the joint parliamentary committee into the matter.
“The corruption on the part of Modi himself by leaking the information to his own supporters and party members is being termed as a scam worth Rs 8 lakh crore. Earlier, RBI was considered to be an autonomous body but, now it seems that the Central government is exercising control over it,” he pointed out.
Reacting to the statement of the AICC spokesperson, Odisha BJP president Basant Panda said “The step taken by PM Modi is a bold one and is welcome. Since the citizens of India have welcomed the decision, the protests by the Opposition will not yield any results.”
Addressing the ‘Make in Odisha’ Conclave in Bhubaneswar, Jaitley said “India of course has remained one of the finest islands of growth world over. Last two years we have been the fastest growing major economy of the world and I have no doubt that we would continue to do so this year also. But the challenge for India is how to look ahead as far as the country is concerned. Therefore, some changes which are now taking place will look as difficult challenges in the immediate context but their potential for the future to bring about significant changes in the country is extremely important. I do believe that two initiatives – and I would thank the Odisha CM and his colleagues for being supportive on both those initiatives – the recent currency changes, and also the proposed GST would eventually benefit the whole country and certainly a state like Odisha. If you look at the long term impact beyond one or two quarters, once these two decisions are effectively implemented, notwithstanding the painful process of implementation itself, what would really be the impact of these decisions? As far as GST is concerned, the whole country would be one big market. There would be seamless flow of goods and services across the country. This itself would now entail a system where leakages will be blocked, a far more efficient tax system of indirect taxation would come into existence and obviously over a period of time it will not only help in the growth process but also help a consuming state like Odisha. Tax evasion will increasingly become extremely difficult because some limb of the transaction from its inception till the sale – the whole process of manufacturing, the whole journey of a particular product – will be captured somewhere on the IT backbone which is being developed for this process.”
Odisha CM Naveen Patnaik thanked Arun Jaitley gracing the conclave which has been organized by the State government for attracting investments. Citing that Odisha boasts of world class infrastructure, Naveen in his address, urged the industrialists to invest in the State.
“I feel extremely happy to inform you that I was a part of the inaugural ceremony of the nine new industrial infrastructure projects and industrial units over the past 15 days, including 3 projects of Aditya Birla group, Shahi Exports and the ITC Group. I congratulate the companies and welcome them to our family. Odisha which is often been identified as a mineral rich state is a land of rich and diverse achievements comprising historical monuments, archaeological sites, traditional art, sculpture, dance and music. I request all to celebrate our rich cultural heritage by participating in the Konark Dance and International Sand Art Festival which is commencing this evening. My government has already set benchmarks in every sector. Odisha which was known for natural calamities is known for setting international standards and received global recognition for its handling of natural disasters. Who would have thought 15 years back that Bhubaneswar would top the smart city chart in the country and be in the top five of the finest smart cities of the world,” said Naveen Patnaik.
Also Read: ‘Make In Odisha’ conclave kick starts; CM hopeful of big-ticket investments
The chief minister also spoke about Vision-2025 in which state is planning to attract investments worth Rs 2.5lakh crore which will create 30 lakh new employment opportunities by the year 2025. Odisha is committed to provide all necessary infrastructure support to industries and will aim to take policy initiatives and develop world class infrastructure for industrial development, said Naveen.
In a press meet in New Delhi, All India Congress Committee’s chief spokesperson, Randeep Surjewala alleged that BJP members have bought land at significantly lower than market prices, adding that the demonetisation decision is the "biggest scam" in the country so far.
While revealing that BJP has bought properties in 18 districts of Odisha on the lines of those purchased from in Bihar, Surjewala dared Narendra Modi and Amit Shah to make public all financial and land dealings of BJP and RSS in the last six months.
Citing a reference, Surjewala pointed out that former Rajya Sabha member of BJP, Surendra Lath bought 2 acre land in Kendrapara on August 30, 2016 at a price of Rs 45 lakh. It is alleged that the price paid for the land was way below its market rate. Similarly, BJP has bought land in Jagatsinghpur on September 19, Berhampur and Jharsuguda in October. The Congress also demanded that all financial and land dealings of BJP should be made public.
Also Read: Demonetisation: Scarcity of essential commodities feared
“In the Kendrapara town, the land has been bought at Rs 45 lakh while the actual market price is Rs 1.5 crores. In the guise of setting up a district office, the party has channelled the funds just before the demonetization move. Whose money is it and what is its source?” asked president of Odisha Pradesh Congress Committee (OPCC) chief Prasad Harichandan.
Reacting to these allegations BJD has sought a clarification from BJP National President, Amit Shah.
“If there is any truth to the allegations, then Amit Shah should definitely provide answers,” said BJD spokesperson, Pratap Deb.
“While responding to these allegations BJP’s Brugu Bauxipatra said “Whatever BJP is doing, it is doing in front of the eyes of the public. All these land dealing are being done through the State government’s land registration mechanism. BJP has already bought land for party offices in 18-19 districts out of 30 and in a few days time construction will start.”
Observers believe that such allegations could spell trouble for Odisha BJP during the winter session of the Odisha Assembly will begin from tomorrow.
Vehicular traffic was normal in Bhubaneswar and Cuttack and other parts of the State. All the business establishments and private organisations remained open except educational institutions. Government buses and other private vehicles were seen plying on the road.
The protesters staged demonstration at various places. The activists of Centre of Indian Trade Unions (CITU) took out a procession from Master Canteen square in Bhubaneswar and demonstrated in front of the office of Reserve Bank of India (RBI).
Similarly, Congress leaders also held similar demonstration in front of the RBI. PCC president Prasad Harichandan and other top leaders took part in the event. "We have not called for a bandh, but have decided to observe it as 'Akrosh Divas'. It is Prime Minister Narendra Modi, who spread the message of bandh. We protested against ban on Rs 500/1000 notes, which led to nationwide financial crisis", PCC spokesperson Sarat Rout said.
Odisha Pradesh Congress President Prasad Harichandan said-"This is an undeclared emergency by the Narendra Modi government. People are suffering a lot due to the decision of the NDA government".
Besides, the activists of the Left parties also held protest rally near Srimandir Singhdwar, Swargadwar and Marine drive in Puri. They demanded withdrawal of decision on note ban. "We demand the people should be allowed to withdraw their money from bank. The demonetisation decision has crippled the life of the common man and farmers. The impact of the demonstration has already fallen on the Modi-government. We will intensify our agitation in future", State CPI secretary Dibakar Nayak said.
Ali Kishore Patnaik, CPI-M State Secretary, said the central government should allow people to use the old currency notes so that they do not suffer due to the Centre's decision.
He said while the small traders are bearing the brunt, the economy of the country would collapse following the demonetisation move.
The Congress also observed the Akrosh Divas in Cuttack, Balasore, Jeypore, Bolangir, Sambalpur and Rourkela. The Left party members also held separate demonstrations in front of bank branches and other government offices.
Accusing the BJP of spreading misinformation, the Congress on Sunday had said it has not called for a ‘Bharat Bandh’ or a countrywide shutdown on Monday but a ‘Jan Akrosh Diwas’ to hold protests against demonetisation.
Likewise, the Maoists also extended support to the country wide demonstration. The Malkangiri division of the outlawed outfit appealed to the people through a press release to support the move against demonetisation. “The Centre has tried to strengthen the corporate houses by gathering the notes of common man in banks”, the release read.
Union minister Dharmendra Pradhan took a jibe at the BJD-led government for indirectly supporting the demonetisation move. "Initially, they supported demonetisation, but surprisingly the Odisha government has shut down schools and colleges. This is the double standard nature of BJD. I think maybe they (Odisha government) have also been affected by this move", Pradhan said.
The BJD also reacted to Pradhan saying that school and colleges were shut down in apprehension of any law and order situation. "Pradhan should analyse the decision of State to close the school and colleges in law and order aspect. It is a precautionary measures. State government's stand on demonetisation is very clear and it has remained intact", BJD spokesperson Pratap Deb said.
So far, there has been no major incident, except a few stray incidents in the districts," a senior police official said.
“I am directed to say that it is reported in the press that some political parties would observe a bandh on November 28 in protest against the demonetisation as announced by the Central government. It is apprehended that they may stop vehicular traffic, rail traffic and close down business establishments and picket before all government offices, banks and educational institutions etc. You are, therefore, requested to take all preventive measures to maintain law and order and to ensure maintenance of essential services in the district. You are also requested to ask the officers and staff to come to office by 9.30 AM positively,” said senior IPS officer and special secretary, Home, Lalit Das, in a letter to all district collectors today.
Meanwhile, apprehending untoward incidents during Bharat Bandh, the state government, in a release in the late evening, announced closure of all government and private educational institutions tomorrow.
The decision has been taken for the safety and security of the students as the bandh call is given by several political parties, a release issued by the Chief Minister's Office (CMO) said.
In view of the Bharat Bandh call, authorities of the Utkal University today cancelled all examinations which were scheduled tomorrow.
As informed by the Controller of Examinations, Utkal University, rescheduling of the examination would be announced through a notice later.
Speaking to newsmen here on Saturday, Dibakar Naik, CPI State Secretary, “Activists and leaders of CPI, CPIM, CPIML, SUCI and the All India Forward Block will stage demonstrations in front of the RBI office in Bhubaneswar and branches of State Bank of India in all district headquarters during the All India Protest Day on November 28. The activists of Left parties will also court arrest protesting against the disorder in Modi’s financial policy.”
Also read: BJD regime in Odisha working against tribals: CPI
Naik further stated, “We demand exchange of old currency notes should be allowed till December 30 and availability of enough of currency notes in market."
Central team member and Union Joint Secretary, Food and Public Distribution, Suresh Vashist held discussions with Ganjam collector Premchandra Choudhary along with representatives from Agriculture, industries and cooperative banks.
Rice millers and transporters were also present during the discussions.
The team also reviewed the situation in Jajpur district.
“The team took feedback on the demonetization program from the farmers associations, traders associations, and industries’ representatives of Ganjam district and nearby areas. Everyone has welcomed the step,” said Vashist.
Also read: Central team happy on State’s steps to ease demonetisation pain
“The joint secretary of the Food and Public Distribution who is a part of the central team visited today. The representatives from Ganjam district along with 4-5 other nearby districts were called for discussion with them. They have given their feedback to the team on the problems faced in rural areas. We hope that after receiving the feedback, some directions or instructions will be issued to bankers and the administration so that the public is able to transact smoothly,” said the Ganjam Collector.
The team which is checking the implementation of demonetization, difficulties faced by the general public and the steps taken by the State government in this regard, had also held discussions with the State finance department officials yesterday.
"The State has taken very good measures to ease the problems arising out of demonetisation. We have discussed various strategies to sort out people's pain in future. A report in this regard will be submitted to Centre", team member Suresh Vasisht said after holding a review meeting with top officials and bankers here at Secretariat.
“In the meeting with State officials, we came to know that all have welcomed the decision of Centre and are working accordingly”, he added.
The team reviewed withdrawal situation, status of calibration of ATMs to dispense Rs.2,000 and Rs.500 notes, demand of mobile banking in unbanked gram panchyats and overall impact of demonetisation on various segments.
The State special secretary, Finance, Ashok Meena, who was a part of the meeting, emphasised on problems mostly in rural areas. “The situation in urban areas has eased to some extent while there is still problem in rural areas. We have asked the Central team and RBI officials to provide more small currency notes of Rs 100/500 denomination to rural areas. We have also reiterated CM Naveen Patnaik's demand to make transaction facilities for farmers through cooperative banks as procurement and sowing season is doing the round", Meena said.
The Central team has visited Odisha as part of decision of the Union Government to depute teams of Additional Secretaries/Joint Secretaries /Directors to various States and Union Territories to assess the ground level situation amidst reports of cash crunch and review the currency availability across the State in the network of bank branches, ATMs and post offices.
Even almost two weeks after the Rs.1,000 and Rs.500 notes ceased to be legal tender, with exceptions in some areas like petrol bunks, hospitals, and the latest exemption for in government departments for sale of seed to farmers, general public have been facing great inconvenience for exchange, withdrawal from the banks and the ATMs.
Also Read: Baijayant reviews Paradip-Haridaspur rail project
“Within one hour of the announcement of the scheme, I tweeted welcoming it and my party has also taken a stand welcoming it. With regard to implementation, we know that people have been facing difficulties and Odisha chief minister Naveen Patnaik, right since the day after the announcement is monitoring the situation. The CM has been taking steps to ensure facilitation, particularly in rural areas. I have said this before and let me say it again, I think it is possible to take a stand, both by supporting this ban on old notes and also being sensitive to the difficulties that many people are facing right now,” Panda said.
A decision to this effect was taken at a high level meeting presided over by chief secretary Aditya Prasad Padhi at the State Secretariat here this evening which was attended by senior bureaucrats and bank officials.
The chief secretary asked the bank officials to appoint the members of woman self help groups (SHGS) and Bank Mitras of Odisha Livelihood Mission as Bank Correspondent (BC) to ensure banking services in unbanked panchayats.
It was decided that any efficient panchayat or block level employee would be appointed as BC.
Also Read: Naveen writes to PM Modi over RBI’s ban on DCCBs accepting demonetised notes
Present at the meeting, Principal Secretary, Finance, Tuhinkant Pande asked the concerned banks to allow the BCs appointed by them for offline deposit and withdrawal of money. As per the Reserve Bank of India (RBI) guidelines, the BCs are allowed to do this offline job for one day.
The chief secretary asked the banks to allow their BCs for larger transaction of money and give details of the BCs appointed at the panchayat level. It was decided that the BCs will report about their presence to the concerned Panchayat Sarpanches who will provide space to them in the panchayat office to discharge their duty.
Apart from this, the State Bank of India (SBI) was asked to provide adequate number of new notes to the post offices to enable the people to exchange their old notes. Besides, those having no postal account will be allowed to instantly open account and deposit their money.
It was revealed that there are a total of 6056 ATM counters in Odisha of which about 75 percent ATMs have been made operational.
Besides, of the 8251 BCs appointed by various banks, 84 percent of BCs are now on duty. Till date, about Rs 6000 crore of old notes have been exchanged with new notes while people have been allowed to deposit old notes in their account and withdraw new notes.
Panchayati Raj secretary Deo Ranjan Singh, RBI General Manager, Bhubaneswar, Prasanna Kumar Das and Additional Secretary, Finance, Tapan Kumar Pradhan were also present at the meeting.
In a letter to Union Finance minister Arun Jaitley today, Chief Minister Naveen Patnaik said out of 6238 Gram Panchayats in Odisha 4400 do not have a bank branch.
“In the context of demonetisation of Rs, 500 and Rs 1000 currency notes along with restrictions on withdrawal, my concern is to ensure that the people living in the villages do not suffer on this account. They should continue to access benefits and services such as old age pensions, wages under MGNREGA, scholarships etc being provided to them without any difficulty. Besides, bank branches should provide services relating to withdrawal of money and exchange of old currency in a hassle-free manner,” Patnaik stated.
Apart from relaxations in withdrawals for government disbursements like old age pensions, which the Reserve Bank of India (RBI) has facilitated, the Chief Minister requested the Union minister to instruct the Apex Bank to urgently provide mobile banking services or to set up temporary counters in unbanked GPs for which the state government will provide requisite support and infrastructure for the benefit of 1.65 crore of people of 70 percent of GPs in Odisha constituting 47 percent of the rural population of the state.
Talking to the media here this afternoon after a meeting with senior officials of the RBI and State Bank of India (SBI), Principal Secretary, Finance, Tuhinkant Pande said the state government has decided to provide old age, widow and differently abled pensions in the state tomorrow.
“I had a meeting with the senior SBI and RBI officials, currency chairs and social sercurity officials to begin logistic operations so that the people in each GP would avail the old age and other pensions,” he added.
The principal secretary further said that for disbursement of pension among 35 lakh beneficiaries, the state government has earmarked Rs 140 crore.
He said the district collectors have been asked to make all necessary arrangements to provide pension to aforesaid persons.
BJD spokesperson Sashi Bhusan Behera said the Centre should take immediate steps in providing mobile banking services to ensure that common people especially those living in remote and inaccessible areas of the state will not face any difficulties.