oppn parties Latest Deposit Restrictions Must Be Taken Back

News Snippets

  • In reply to a question in Parliament, the government says it is empowered to lawfully intercept, monitor or decrpyt information stored in a computer resource in the interest of sovereignty or integrity of India
  • Police stop a 12-year old girl on her way to the Sabarimala shrine
  • In Karnataka, the JD(S) indicates that it might support the BJP government if it falls short of numbers after the bypolls
  • Congress pips the BJP in local body elections in Rajasthan, winning 961 wards to the BJPs 737
  • After Airtel and Vodafone-Idea, Jio also indicates that tariffs will be raised from December
  • Sources in Shiv Sena say that they might revive the alliance with the BJP if it offers the 50:50 deal
  • A miffed Sanjay Rout of the Shiv Sena says that it will take "100 births" to understand Sharad Pawar
  • Mobile operators Vodafone-Idea and Airtel decide to raise tariffs from next month
  • Sharad Pawar meets Sonia Gandhi and says more time needed for government formation in Maharashtra
  • Justice S A Bobde sworn in as the 47th Chief Justice of India
  • Supreme Court holds hotels liable for theft of vehicle from their parking area if parked by valet, says "owner's risk" clause is not a shield from such liability
  • Finance Minister says she is receiving feedback from many sectors that recovery is happening as there is lower stress
  • Sabarimala temple opens, but police bar the entry of women below 50 years
  • Finance Minister Nirmala Sitharaman says Air India and BPCL to be sold off by March
  • Media person Rajat Sharma resigns as DDCA president
Two Muslim litigants in Ayodhya refuse to accept the Supreme Court order, say review petition might be filed
oppn parties
Latest Deposit Restrictions Must Be Taken Back

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
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.