Money & Banking
Demonetisation: 18 Hard Questions the Parliamentary Panel Should Ask the RBI Governor
The governor of the Reserve Bank of India, Urjit Patel is supposed to appear before a parliamentary panel today, to explain the demonetisation decision and its effect on economy. He would also be quizzed about the steps the Central bank took to deal with the massive cash crunch that followed the sudden withdrawal of 500 and 1000-rupee notes, announced by Prime Minister Narendra Modi in an address to the nation on the evening of November 8. Here is a list of questions that the Parliamentary panel may like to put to Mr Patel. 
 
1.   Was there any contingency plan before withdrawing the 85% on notes?
 
2.   When did the printing of Rs500 denomination notes start?                        
 
3.   How many pieces of notes of Rs2,000 denomination were ready by 8th November 2016?
 
4.   Was the stock of paper, ink, security features enough on that day to print new notes? 
 
5. Please give us the paper production figures also printing figures month wise before 8th November 2016 to support the contention that you were ready with plans or to indicate you had made adequate plans 
 
6.   Were you not supposed to change the security features as well along with new designs? Who delayed them?
 
7.   Do you even now have contracts in place for M-features, security thread, ink etc.? Or you are importing these on expired contracts? Give us the contract dates please. 
 
8.   How much have you spent on imported paper, ink, security features before and after the 8th November 2016?
 
9.   Luckily Bank Note Paper Mill India Pvt Ltd (BNPM) has so far produced solar 6,300 tonnes of paper, but by 8th November 2016 produced 2,600 tonnes of paper for Rs2,000 denomination. What if that Mill had also failed like Hoshangabad because of some accident? Was there a plan in place?
 
10. Is it true that the Hoshangabad plant was supposed to produce 6,000 MT security paper in a year but by 8th November 2016 had produced only 10 tonnes for Rs500 note paper?
 
11. You require 28,000 MT of paper to replenish 18 billion pieces. Was enough paper imported for this purpose? By when?
 
12. Why have you now called for tenders for import of 27,000MT paper?
 
13. You have plans to consume 27,000MT imported paper plus 14,000MT manufactured by your Mysuru paper mill even if you ignore Hoshangabad. Is this correct?
 
14. If so, do you know that you have exhausted your reserve bank notes while the old notes which were pulled out to be incineration that you put back into circulation, will wear out in a few months? How would you print all those notes and by which time frame. Can it take as long as two years?
  
15. As on 8th November 2016, was the printing capacity of Bharatiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL), a wholly-owned subsidiary of the RBI (Salboni and Mysuru) around 40 million per day and govt presses (Nashik-Maharashtra, Dewas-Madhya Pradesh) 15 million per day? 
 
16. How did you think replenishing even 10% of withdrawn notes within two months or 8 weeks was possible? Are all the Presses still working in two shifts to print 90 million notes per day?
 
17. Will the printing presses take this extra load continuously?  
 
18. How many more months required to replenish the old notes?

User

COMMENTS

Ajit Duge

4 months ago

What you want to prove by asking these questions ??

Ramesh Bajaj

4 months ago

Seems to appear as if RBI has been ordered , that's it!

REPLY

Govinda Warrier

In Reply to Ramesh Bajaj 4 months ago

Please do not reduce it to an issue between GOI and RBI or something done just to belittle Urjit Patel. The November 8 announcement withdrawing legal tender status of currency notes was not an encroachment into RBI 's domain. That day it was not demonetization. Let's not digress from real issues by shifting responsibilities

Mahesh S Bhatt

4 months ago

Major question estimates of cash black money reduction after this / & cost benefit analysis Mahesh Bhatt

REPLY

Govinda Warrier

In Reply to Mahesh S Bhatt 4 months ago

Sir, Money changes color as it changes hands. The white money in your hands, once paid to me can become black depending on how I account it. I'll be happy, post all this chaos, if more people use legally recognized channels for transactions and keep less cash at home. If tax avoidance and fake currency come down, that's also good for the nation in the long run. No one expects a quick clean up in the present scenario. Have faith in the post Independence generation. We get worked up wondering whether the present political leadership can manage the show. No. But they will be forced to perform or perish, by the impatient youth who are willing to participate in governance. I anticipate a much larger, meaningful movement than India Against Corruption guiding the political leadership in the near future. Good Day

vswami

4 months ago

To Add (just to make it an odd number - 19)
If remember right, the former RBI chief has been open enough to decry the steps taken and gone ahead with as 'old fashioned' . Reading in between lines, it is to be inferred that in his contemplation, a better but least cumbersome alternate route would have been available, and could have been resorted to, to accomplish the same intended objective. If so, did , at any time, the RBI , -as has been now claimed to having been 'prodded' - offer any such suggestion ( to the empowered men who most matter and have had a hand or role to play ) in the whole episode?

Mohit Mehta

4 months ago

This all cheater never give answer and come up with new harassment for common public. They should be hanged in public like some Muslim Country.

P Krishnamurthy

4 months ago

Demonetisation has been a political move and an economic disaster with very limited political success

Anurag Srivastava

4 months ago

Hope he is asked questions like : Whose grand idea was to change the SIZE of notes in name of secuirty features which required calibration of ATM's ? Also if RBI was aware of license issue of ATM ? Most of the problems encountered by people was due to long queues not demonetisation itself. People didnt complain about demonetisation as they are doing about Jallikattu :)

REPLY

bharati

In Reply to Anurag Srivastava 4 months ago

Was the note shortage caused by banks saving them for certain customers?

Vikas Sivaraman

In Reply to bharati 4 months ago

Yes banks caved in to the pressure of politicians to refresh their notes unaccounted. RBI governor was too weak to support his banks against politicians. RBI gov is brother in law of Mukesh Ambani who in turn is a good gujju pal of Modi. So it's all well planned

Govinda Warrier

In Reply to Vikas Sivaraman 4 months ago

Great going! Aage bol...Bol...Put Moneylife in a corner from where it'll be tough to retreat...

David M. Thangliana

4 months ago

Very valid questions indeed. And the logic behind the discontinuation of Rs 1000 notes still escapes me as the gap between Rs 500 and Rs 2000 is so wide

REPLY

Vikas Sivaraman

In Reply to David M. Thangliana 4 months ago

It's simple. 6montgs from now the ₹ 2000 note will be demonotised to further flush out hoarded cash and the ₹ 1000 note will be reintroduced. Rumors are that a new 1000 note is already in the final design approval stage. And thankfully it's not PINK!!

Ramesh Bajaj

4 months ago

Very valid questions. The answers will be very important.

Govinda Warrier

4 months ago

These are more relevant and Interesting questions than the ten questions attributed to MPs who are members of the Parliamentary Committee. But let us also remember, there may not be need to replace the entire currency that has traveled back to the banking system post November 8 as substantial portion of this was not in use and was only "stock"

Govinda Warrier

4 months ago

These are more relevant and Interesting questions than the ten questions attributed to MPs who are members of the Parliamentary Committee. But let us also remember, there may not be need to replace the entire currency that has traveled back to the banking system post November 8 as substantial portion of this was not in use and was only "stock"

Govinda Warrier

4 months ago

These are more relevant and Interesting questions than the ten questions attributed to MPs who are members of the Parliamentary Committee. But let us also remember, there may not be need to replace the entire currency that has traveled back to the banking system post November 8 as substantial portion of this was not in use and was only "stock"

Govinda Warrier

4 months ago

These are more relevant and Interesting questions than the ten questions attributed to MPs who are members of the Parliamentary Committee. But let us also remember, there may not be need to replace the entire currency that has traveled back to the banking system post November 8 as substantial portion of this was not in use and was only "stock"

Govinda Warrier

4 months ago

These are more relevant and Interesting questions than the ten questions attributed to MPs who are members of the Parliamentary Committee. But let us also remember, there may not be need to replace the entire currency that has traveled back to the banking system post November 8 as substantial portion of this was not in use and was only "stock"

Govinda Warrier

4 months ago

These are more relevant and Interesting questions than the ten questions attributed to MPs who are members of the Parliamentary Committee. But let us also remember, there may not be need to replace the entire currency that has traveled back to the banking system post November 8 as substantial portion of this was not in use and was only "stock"

Government puts on hold move to tax indirect transfers
In a measure of relief to foreign portfolio investors (FPIs), venture capital and private equity investors, the government on Tuesday said it is putting on hold its recent circular on taxation of indirect transfers.
 
India's Central Board of Direct Taxes (CBDT) had on December 21 issued a circular applying indirect transfer provisions on FPIs whereby any profits made by funds with the underlying assets would have been taxed, including equities in India.
 
Application of these provisions would have subjected foreign portfolio investors to greater scrutiny by the Income Tax department and would have led to double-taxation in many cases.
 
"After the issue of the aforementioned circular, representations have been received from various FPIs, FIIs (foreign institutional investors), VCFs (venture capital funds) and other stakeholders. The stakeholders have presented their concerns stating that the circular does not address the issue of possible multiple taxation of the same income," a Finance Ministry release here said.
 
"The representations made by the stakeholders are currently under consideration and examination. Pending a decision in the matter the operation of the above mentioned circular is kept in abeyance for the time being," it said.
 
Indirect transfer provisions deal with taxation of transactions, where even though the transfer of shares happened overseas, the underlying assets were in India.
 
Indirect transfer provisions were introduced in the Income Tax Act in 2012, with retrospective effect cluase by which the Indian government sought to bring British telecom major Vodafone's $11 billion acquisition of Hutchison Essar in 2007 and other such transactions under the tax net.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

COMMENTS

vswami

4 months ago

This is one of those odd but sensible and pragmatic moves , albeit belatedly, the govt. / FM could be remembered to have made in the recent decades. As is to be readily imagined, just this one move alone may go a long way in primarily saving the nation from a protracted and never ending tax litigation; thereby, save the Exchequer , and in effect, the taxpayers' monies, from wasteful public expenditure, with no purpose served.

Raji Venkatarajan

4 months ago

Is is good to do such post-mortem exercise. But do these people know the compulsions like huge counterfeit currencies flowing freely in the high denomination notes etc. Only political class know through their intelligence. Can RBI Governor be the right person to explain the context?

Pharma Money Reaches Guideline Writers, Patient Groups, Even Doctors on Twitter

This story was co-published with NPR’s Shots blog.

 

The long arm of the pharmaceutical industry continues to pervade practically every area of medicine, reaching those who write guidelines that shape doctors' practices, patient advocacy organizations, letter writers to the Centers for Disease Control and Prevention, and even oncologists on Twitter, according to a series of papers on money and influence published today in JAMA Internal Medicine.

 

The findings of the papers provide further evidence showing how conflicts of interest help shape health care, a subject ProPublica has explored through its Dollars for Docs series since 2010. (Check whether your physician receives money from drug or device companies through our news tool.)

 

What the New 2018Collaborative Media' Can Mean

  • Search through nearly 15 million records to see if your doctor has received money from a drug or device company. Search for your physician.
  • Get the data that powers this investigation. A complete, digital download is available for purchase in the Data Store.

 

"The very way we all think about disease — and the best ways to research, define, prevent, and treat it — is being subtly distorted because so many of the ostensibly independent players, including patient advocacy groups, are largely singing tunes acceptable to companies seeking to maximize markets for drugs and devices," researchers Ray Moynihan and Lisa Bero wrote in an accompanying commentary.

 

The papers published in the journal cover a variety of issues:

 

More than two-thirds of patient advocacy organizations that responded to a survey indicated that they had received industry funding in their last fiscal year. For most, the money represented a small share of their budget. But 12 percent said they received more than half of their money from industry.

 

Most organizations reported having a conflict-of-interest policy, but a much smaller percent said that their groups had policies for public disclosure of those relationships. Fewer than 8 percent of respondents said their group "perceived pressure to conform its positions to the interests of corporate donors or partners" and nearly 14 percent said their group had declined a contribution because of concerns about conflicts of interest.

 

"Although the amounts and proportions of financial support from industry are modest, the pervasive nature of industry support suggests the need for robust public debate about how to ensure that [these groups] serve the interests of their constituencies," the authors affiliated with the Cleveland Clinic and other academic medical centers wrote. It called for greater transparency of funding sources by the groups.

 

Organizations that received funding from opioid manufacturers were less supportive of guidelines proposed by the CDC to limit prescribing of the drugs for chronic pain. More than 150 organizations formally submitted comments after the proposed guidelines were released in February 2016, and 80 percent of them were supportive, though some had recommendations for changes.

 

Among the 45 groups that received money from opioid makers, though, the level of support was only 62 percent. And none of those groups disclosed their funding sources in their comments. (The CDC did not ask or require them to do so.)

 

"More people are dying than ever before from these products and it's important to know how the market is shaped by the spending of drug companies," G. Caleb Alexander, co-director of the Center for Drug Safety and Effectiveness at Johns Hopkins University, said in an interview.

 

Two committees that developed guidelines for the management of high cholesterol and hepatitis C did not fully comply with standards set by the Institute of Medicine in 2011 to limit the number of industry-funded panelists. The Institute of Medicine required that fewer than half of guideline writers have commercial ties and that all chairs and co-chairs have no conflicts. But in both cases, at least one chairperson received money from industry and, in the case of the hepatitis C guidelines, a substantial majority of panelists also received money.

 

Moreover, the authors noted, when separate committees with no commercial conflicts developed guidelines for cholesterol and hepatitis C, the recommendations were more conservative and called for less expensive first line treatments.

 

Nearly 80 percent of U.S. hematologist-oncologists who use Twitter have financial conflicts of interest. The authors said their results raise questions about how conflicts should be disclosed and managed on social media. It recommended that, at minimum, physicians active on Twitter should disclose their industry funding in their biographies.

 

A preliminary analysis of tweets by these doctors, not yet published, has shown that "a sizable percentage are tweeting about drugs that they have specific ties to," oncologist Vinay Prasad, one of the authors of the study and an assistant professor of medicine at Oregon Health & Science University, said in an interview. "Not a single one has disclosed so far, but we'll find out."

 

The pharmaceutical industry trade group, in a statement, defended the relationships between companies and other organizations.

 

"Industry engages with stakeholders across the health-care system to hear their perspectives and priorities," said the statement by Pharmaceutical Research and Manufacturers of America. "We work with many organizations with which we have disagreements on public policy issues, including on prescription medicine costs, but believe engagement and dialogue are critical.

 

"While we cannot speak for particular organizations, we have heard from many patients who are concerned about the growing out-of-pocket cost burden when trying to access needed health-care services and treatments. In addition, there is broad recognition by the patient community of the significant unmet medical need that exists for many fighting devastating and debilitating diseases."

 

Moynihan and Bero, the authors of the JAMA Internal Medicine commentary, wrote that their primary concern is that patient groups actually speak for patients. Recently, when Mylan came under widespread criticism for the price of its EpiPen, patient groups were largely silent.

 

"To ensure a healthier patient voice in medical research, education, policy and practice, sponsored groups that want to be seen as independent and credible need to decrease their industry sponsorship and ultimately disentangle, gaining in authority what they lose in resources," they wrote.

 

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for their newsletter.

 

User

COMMENTS

Pradeep Kumar M Sreedharan

4 months ago

Bought

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)