Spending
SBI credit card arm ordered to pay Rs12,000 for deficient service

SBI Card and Payment Services has been directed by the North District Consumer Disputes Redressal Forum to pay the compensation to the Delhi-based customer for ‘lowering’ her financial credibility due to which she was denied a loan by another bank

 

A consumer forum has directed SBI Card and Payment Services to pay Rs12,000 as compensation to a customer for putting her name in CIBIL’s defaulters list despite an assurance that the annual fees of her credit card would be free for lifetime. 

 

The firm, a joint venture of State Bank of India and GE Capital, has been directed by the North District Consumer Disputes Redressal Forum to pay the compensation to the Delhi-based customer for ‘lowering’ her financial credibility due to which she was denied a loan by another bank. 

 

“Though the complainant (doctor) was issued ‘Free SBI Doctors’ credit card’ and was under no obligation to pay any amount to the opposite party (SBI Card and Payment Services), nevertheless it showed that Rs3,590 was due... Because of this negligent act, complainant was denied a car loan by HDFC Bank since her name appeared in the list of defaulters...

 

"We hold the opposite party deficient in service on account of which financial credibility of complainant had been lowered in the eyes of other banks to which she had applied for car loan,” a bench presided by Babu Lal said. 

 

The complainant, Dr Sara Varghese, had alleged that the subsidiary firm of SBI had assured her the credit card issued to her would be free for lifetime, but when her card was renewed an annual fee was charged from her. 

 

Her request for cancelling the card was not accepted and payment of the annual fees was demanded even though she had stopped using it, she had alleged. 

 

When her application for a car loan was rejected by HDFC Bank, she found out that her name had been added to the list of defaulters maintained by Credit Information Bureau (India) (CIBIL) for non-payment of the annual fees, she said. 

 

The credit card firm in its defence contended that the annual fees were charged inadvertently due to some technical glitch when the doctor’s credit card was renewed, and the error was corrected after it was detected. 

 

The forum rejected the contention saying no proof was shown by the firm that there was a technical snag.

 

User

RBI takes a pause, keeps repo, bank rates and CRR unchanged
Balance of payments and inflation and growth rate will determine future monetary stance, the central bank said
 
The Reserve Bank of India (RBI), in its mid-quarter review of the monetary policy on Monday, decided to keep key interest rates, cash reserve ratio (CRR) and repo rates unchanged. According to economists, external risks, particularly weakness in the rupee, may have prevented the RBI from cutting rates.
 
The CRR stands at 4% and the repo rate has been left unchanged at 7.25%.
 
While the macro indicators were falling in place for the RBI to continue easing rates, rupee depreciation has now become a major hurdle to rate cuts. Sharp depreciation in rupee over the last couple of weeks, touching new record-lows of 58.98 against the dollar on 11th June, limits the possibility of rate cuts in the near term.
 
The RBI said the rupee fall, external sector risks and elevated food inflation are areas of concern which need to be addressed. Balance of payments and inflation and growth rate will determine future monetary stance, the central bank added.
 
In its statement on the monetary policy, the RBI said, “It is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth. While several measures have been taken to contain the current account deficit, we need to be vigilant about the global uncertainty, the rapid shift in risk perceptions and its impact on capital flows.”
 
The large Indian current account deficit (CAD) and equity and bond outflows since the end of May make the currency price action precarious.
 
Given RBI’s previous hawkish rhetoric, and explicit focus on the current account deficit (CAD), the market was also not expecting any changes in the policy rates.
 
Sonal Varma, economist, Nomura Financial Advisory and Securities (India) Pvt Ltd, said, "In our view, while growth-inflation dynamics still call for rate cuts, rupee volatility and the ensuing concerns on financing the current account deficit are likely to determine monetary policy action. Hence, if rupee stabilizes and CPI inflation moderates, then rate cuts could follow, which is our base case view. On the other hand, if financing the current account is difficult, then rate cuts will likely be postponed further. We pencil in 50bp of cuts to the repo rate in second half of 2013 with CPI inflation and rupee likely to determine the timing of the moves."
 
 

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Many messy reasons why people prefer gold. Can the FM remove them?

Indians have always invested in gold for weddings, gifts and as a hedge against inflation. But now there are other reasons—investors feel harassed by the tax and regulatory authorities. Can the FM and other authorities do anything about them?   

The central government is restless and the Reserve Bank of India (RBI) is nervous over the rising current account deficit (CAD), but people are impatient. The general public feels that the recent fall in the price of gold is temporary, it will rise again. So they want to buy as much gold as feasible as quickly as possible. This psyche of people has given rise to increasing demand for gold, which is making the government’s efforts at controlling CAD difficult. The CAD is the shortfall between what our country earns in foreign exchange through exports plus inward remittances and what our country spends by way of imports and outward remittances. This gap has reached a level of 5.4% of our GDP (gross domestic product) which is considered very high by the credit rating agencies. India is one of the biggest importers of gold which is the reason for the high CAD prevailing at present. 

 

There is a palpable anxiety in government circles, that if it fails to control the CAD, inflation may go haywire, GDP growth may suffer and the chances of India’s credit rating being downgraded are high. And if this happens, it can have catastrophic ramifications for our economy. That is the reason for the worry.

 

With a view to reduce the demand for gold, the government has taken a series of steps. The import duly on gold, which was just 1% till the beginning of last year has been increased as many as four times during the last 18 months, taking it to 8% at present. The RBI has brought in a series of restrictions on granting of loans on the security of gold, both by banks and gold finance companies. Besides, the central bank has put a lot of conditions on import of gold by jewellers and selling gold in the domestic market. The finance minister (FM) has appealed to the people to resist the temptation to buy gold.

Read: “Stop buying gold, says FM: unapologetic that savers have so few options”.

 

How to bring down the lure for gold? The gold mania is not new in our country and every Indian family believes in investing in gold jewellery not only for their personal use, but also as a hedge against inflation. But now there are more reasons to it than mere weddings and inflation. Here are two live examples of what people feel today about the messy investment options available in India. 

 

Why bank deposits are shunned by common people? A senior citizen told me that he got a big remittance from his daughter from the US and wanted to know more about the investment options without much hassles. When I suggested that his daughter being a NRI could invest in NRE and FCNR deposits in banks in India, free of Indian income tax, he said that his daughter did not want to invest in her name in India, as it caused tax problems for her in the US. Though NRE/FCNR deposits are tax-free here, laws in US require her to declare her income earned in India and pay tax over there. So he wanted to invest in his own name, without any hassles of TDS, filing of income tax return, etc, but in a safe and secure way. As he did not want to take any risk of investing in shares, he ruled out investing even in mutual funds. He did not feel comfortable to invest in bank deposits too as he said that it attracted TDS and consequent falling into the trap of never ending queries from tax officials. After considering all options, he only wanted to invest in physical gold coins which, he said, was the best option in today’s environment.

 

When I mentioned to him that our FM had appealed to people not to invest in gold as investing in gold upsets his apple cart, he said that unfortunately the FM did not seem to know the sufferings of common people, who got harassed from all sides, by banks, tax collectors, cheat funds, market manipulators, all and sundry, while the bigwigs minted money by hook or crook and went scot free. The best way for people to avoid all hassles was to invest in physical gold, which had given much better returns, with no paper work, no income tax, no TDS, no questions asked, but safe and secure, he said.

 

A woman’s lure for gold is not for jewels alone!

Here is another example of what an elderly woman—senior citizen—told me a few days back. As she was getting old, she said that she had converted all her investments in to cash and wanted to invest in physical gold, so that she can easily encash the gold coins as and when she wanted to raise some money and leave the rest to her kith and kin. She was tired of replying to tax authorities, insurance conmen, and a host of wealth management experts, who were bent upon making life difficult for common people. She said that the bank deposits were the worst investment options, as the returns were not only low, but subject to TDS and income tax, etc, which was making life complicated. While the rich have got their huge corporate dividends free from tax, the ordinary middle-class were squeezed by the tax authorities by making interest earned on their hard earned money taxable.  Despite the ups and downs in the price of gold, she was sure that gold was an appreciating asset and prices would keep on rising due to the short supply of the yellow metal. She did not want to buy jewels; she was clear in her mind that gold coins were the best bet for long term investment as they have a ready market at all times, war or peace.

 

This is a representative sample of what ordinary people feel about the investments options available in our country. It is difficult to wean away people from the lure of gold, unless the government comes out with innovative investment options with least paper work, no tax hassles, and no harassment from banks and government institutions. How can this be achieved?  Here is a practical suggestion for the government to consider in the interest of bringing down gold imports for all times to come.                                    

 

Exempt bank deposits totally from income tax without losing tax revenue: At present, corporate dividends are tax-free at the hands of shareholders, without any loss to the government, thanks to the system of taxing the distribution of dividends at the hands of companies and corporates who declare dividends. This has saved lakhs of investors from the rigmarole of filing tax returns to get paltry refunds from tax authorities, when dividends were taxed at the hands of shareholders.

 

Similarly, the long-term capital gains on shares are totally exempt from tax if the shares are sold through the recognized stock exchange. This is achieved without any loss to the exchequer by easily collecting the revenue through the levy of securities transaction tax while buying and selling of shares through the recognized stock exchanges. This has saved considerable time, energy, money, paper work and tax worries to millions of investors in the stock market.                                                                   

 

On similar lines it is possible to make interest on bank deposits free from income tax at the hands of depositors, by simply levying a small percentage of tax on the total interest paid by banks on deposits, making it obligatory for banks to pay this small percentage of tax every quarter to the government without deducting it from the interest paid to the depositors. There should be no income tax at the hands of bank depositors and all taxes should be absorbed by the banks just like dividend distribution tax is absorbed by the companies. This will be the biggest incentive for people to invest in bank deposits, which if made tax-free will serve as the best investment option for the rich and the poor alike, without any loss of revenue to the government.   

 

This will not affect the profitability of banks as this will give a big boost to the deposit growth of banks, and it will provide them an opportunity to lend more and earn more through increased turnover. The government, on the other hand, should be happy to receive the revenue in lump sum from the banks with least expenditure on collection of taxes. There will be no TDS, no tax on bank interest, no need to issue any certificates of TDS, no customer complaints against banks, no tax refunds to bank depositors and no harassment of bank customers. This will give a shot in the arm to the economy by giving a boost to the savings rate in the country. This is the best bet for weaning away people from investing in gold, thereby helping to reduce import of gold considerably. 

 

Conclusion:

This is the right opportunity for the government to achieve several objectives at one stroke. This one step of totally exempting bank deposits from income tax, without losing any revenue for the government, will not only help in weaning away people from investing in gold, but will also serve the purpose of discouraging people from investing in risky Ponzi and other collective investment schemes promoted by fly-by-night operators in different names, over which no regulator has full control. Besides, the banking sector, particularly, the public sector banks will be the biggest beneficiaries of this innovative step, helping them to substantially improve their business and profits, thereby reducing their reliance on the central government for capital infusion, which is the cause of fiscal deficit as well. But equally important, this one bold step will help in winning the goodwill and gratitude of a large majority of middle class population of this country running into several crores of bank customers, as they will get immeasurable relief from the harassment they face at the hands of different agencies for being honest and sincere in their daily life. This simple but most effective step, in short, can go a long way in building a strong economy and return to the heydays of low inflation coupled with high growth of the economy which can create a lasting impact in the life of ordinary citizens of this country.

 

 (The author is a banking analyst and writes for Moneylife under the pen-name of Gurpur .)

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COMMENTS

nagesh kini

4 years ago

Headline June 18, 2013 -
Trade gap at 7 month high as gold imports surge by 89% to $8.4b.
Exports decline to $24.51b. Com Secy. SR Rao Trade deficit is worrisome as it is largely contributed by heavy imports of gold and silver. This is raising concerns about economic recovery.
In May 2013 CAD widened from $17.8b to $20.1b, May 2012 it was $16.9b.
Who says imports are down?

Srikanth Shankar Matrubai

4 years ago

But, the FM's statement and Import Duty seems to taking effect by seeing the number of huge drop in Gold Imports.
Down from 150 tonnes to below 100 tonnes.

REPLY

Kamal Shah

In Reply to Srikanth Shankar Matrubai 4 years ago

This is rather related to LBT and the volatility in the commodity. See the domestic price have jumped from 23500 to 28000.....what a miss . Since many of the jewellers lost a huge amount in the STOCK VALUATION , and the price volatility in the currency has kept a check on the imports .Mr FM should provide a traditional remedy for a traditional change .

CA PRADEEP AGARWAL

4 years ago

Gold has become a very tedious topic whether you buy jewellery or keep gold biscuits at home, actually forget every thing else they are protective wings of a housewife. Forget investments, house wife keeps it for a very long period of time.

Kamal Shah

4 years ago

Mr Finance Minister should have guts to tell how much demand of gold is there in southern states
as demand towards dowry . Minimum 4 tolas ( as per the information ) are demanded as dowry .
Apart from it, pure gold hardly reaches buyer's hand.

nagesh kini

4 years ago

Mr. Vinay Joshi,
If only the Congress President and the PM had seen your comments, both would have asked the present FM to 'step aside' to make place for an 'expert', you jolly well know who!
After reading your long winded comment I'm still at a loss to gather what you are trying to convey.
Wish you had kept it short and sweet to the point that is understandable by a layman.

nagesh kini

4 years ago

Mr. Vinay Joshi,
If only the Congress President and the PM had seen your comments, both would have asked the present FM to 'step aside' to make place for an 'expert', you jolly well know who!
After reading your long winded comment I'm still at a loss to gather what you are trying to convey.
Wish you had kept it short and sweet to the point that is understandable by a layman.

Vinay Joshi

4 years ago

Mr. Gurupur,
Ms.Sucheta ,
Mr. Debashis,

Will you all answer the following?

Mr. Gurupur, a PERTINENT QUESTION to you – why gold imports recorded in CAD? [A pvt. Bank Director says it should be in capital a/c. Well Fine!]

Hence along with the CAD I’m putting up, if cap a/c being raised later, as under.

Now go on to read my post to the ‘gold euphoria’! All introspect & answer including Prof. R. Vaidyanathan – IIM-B. [either ML send it to him or I’ll.]

I’ll first start with one fundamental question –

THIS QUESTION if answered by any authority, media experts, economists, financial analysts, international consultants, brokerages can reveal an answer in respect of high gold imports!?

The question - - How many retail investors have bought gold? Answer, the quantity.
[you all are HNI, how many of your known persons have bought gold?]

Each & every analyst has subscribed to the theory propagated by the Govt. – retail investors have purchased & are purchasing gold, HOARDING. This is false a propaganda.

Why there can’t be audit of the imports & retail sale? Banks are involved.

Can’t every importer give imports/sale vis-a vis stock on hand? Including duty free importers under export obligations. First cue should HAVE come from IT & CBEC to conduct such an exercise BUT the Govt. is gripping WITH ONE SINGLE EXPLANATION! It Knows WHY?

GOLD IS HOARDED BY THE BULLION ASSOCIATION MEMBERS WITH IMPUNITY.
[you have IT raids on ex BBA Prez, [richest assocs] & involvement of IT Commnsr. What outcome can be expected?] Their trading in futures are in cash & hawala based!

So, probe where the imported gold is. [i’m bearish on gold FYI] Genuine gold imports are not there, Govt knows it & is keeping silent. OK. [end the quest.]

DISCUSSION of any economist, is absurd to include ‘gold imports’, in capital account.

BOP transactions are current a/c, capital a/c & financial a/c. In CAPITAL A/C physical assets are recorded, RIGHT?

WHERE IS THE GOLD IMPORTED A PHYSICAL ASSET FOR RECORDING? [RBI had imported from IMF its capital asset. Diverting – today Central Banks are investing in equities.RBI has 560mt.]

In current a/c ‘goods’, include ‘NON MONETARY GOLD’. [apart from services, income & current transfers are included]

The following variables go into the calculation of current a/c balance [CAB].

X = Exports of goods & services.
M = Imports of goods & services.
NY = Net income abroad.
NCT = Net current transfers.

The formula : CAB = X – M + NY + NCT [theoretically it should be zero to balance.]

Its predominantly believed that a surplus nation has highest saving!?
PRC [China] has 3.5+trn$ surplus, yes, it’s savings rate is 50% against world average of 20%,
India slipping down under 30%.

PRC is second largest bullion importer in Asia, its citizens are not buying gold!?

But in comparison India has CAD of 5.2%!?

As per Basel III, ‘unencumbered gold’, in whose hands?

FINALLY HOW MUCH YOU HAVE TO BATTLE THE SITUATION? OK. FY12 CAD SURPLUS OF $5Bn.! Fantastic, [By capital recording logic.] recording jugglery is different.

Mr. A Balasubramaniam, CEO, Birla Sun Life Mgmt; in an interview states “the main villain is gold imports”! Referring to CAD.

On depreciating rupee CAD a factor, in Q3 against CAD 4.7%, INR appreciated by 1%! What is the answer? Gold imports were not pruned then!

If CAD is a factor then why surplus Russia, Malaysia, South Korea currencies depreciated by approx 2.5% during the rupee tumble? Why STG Pound gained in spite of CAD?
Even PRC renminbi gained only 0.53%.

Today reserves under 300Bn barely six months cover [1991 it was 4/6 weeks cover] & a Bank Director emphasizes recording gold imports as capital account.

But no one sees global phenomenon & $ strengthening virtually against all currencies esp Asian & EM’s.

Why RBI is not intervening apart from its limited intervention to curb gold imports indirectly & asking SEZ’s to realize proceeds within 12mnths from due.
What is the comfort level for RBI? 60? Or further to realistic 70?

WHY TODAY NO RATE CUT FROM RBI? Is it not bothered of fueling inflation on sliding rupee? Petrol in Bombay has been raised by Rs2/-.

INR-$ volatility is not a challenge FOR CAPITAL INFLOWS but taxation. FII’s got out of equity, as in last 20 odd days from all emerging markets not debt.

‘Operating above potential growth rate’ has led to high inflation & CAD, WB, Global Economic Prospects states it.

As of now rupees direction is unclear, analysts are cautious Q1 earnings can’t be better than YoY only Q2 will show signs & Q3 definitive.

Are $10Bn NRI bonds coming?
[yes, if rupee stabilizes! when?]Don't expect inflation bonds in near future.

No RETAIL INVESTOR IS BUYING GOLD! GOLD FUTURES IN MCX ARE HIGH [coz of hoarding] & HOARDERS THINK THEY CAN SELL AT PREMIUMS IN SPITE THE BEARISH OUTLOOK IN INT’L MKT!

RBI may have resorted to curbing imports, CBEC with its tariff & assessable value $479, [May $449] was not slowing imports, apart from rupee depreciation.

So, do not jump to the govt. band wagon to state RETAIL SALE!?

Custom data for last quarter & year[concise] & YoY will be out on imports/exports – can be purchased by anyone across India. IT REVEALS THE NAMES OF ALL IMPORTERS & EXPORTERS OF ALL COMMODITIES!

Where is the gold imported? Who financed it? If $ strengthens will Sensex plunge?

Regards,

Bhupesh

4 years ago

Why not IT office maintain a person' TDS status linked with PAN in its database and bank inquire it to see if TDS has to be deducted on FD interest or not.

SuchindranathAiyerS

4 years ago

Since times immemorial, Indians have relied on Gold to protect them from the consequences of bad Governance. The FM cannot put an end to bad governance. Or corruption. Or Govt's self indulgent profligacy. Or the resultant inflation. Without all this, he would not be FM and there would be no You Pay Too Government!

Mrs Kokila Mani

4 years ago

Election nearing, depreciation of the rupee will allow politicians of all hues to bring back their ill-gotten wealth.
A theory is doing the rounds that with election nearing, depreciation of the rupee will allow politicians of all hues to bring back their ill-gotten wealth. Speaking at an award function in Chennai a few weeks back to honour

excellence in financial journalism, Chidambaram frowned on the titillating language used by sections of the media, especially in the world of finance.
Angry at the oft-repeated headlines of “Rupee Plunges” even as our currency would have depreciated by a few Paise against the US$,he said rupee never plunged. Isn't ominous! The reason for the same is not far to seek. whenever any FM opines on the state of the economy, it is a remarkable coincidence that Indian economy faces significant turbulence! The joke in Dalal Street is that whenever the FM bats for the markets the Sensex loses a few hundred points!
Even as he claims that the Indian economy is witnessing copious flows of foreign investment, the rupee came under severe strain. Has he not seen that the rupee has depreciated by around 7.5% this year!
None from our establishment could put his finger on one precise reason for this depreciation till date. Nevertheless, the Indian Rupee is under pressure on account of a variety of reasons.
Gold - the Gorilla in the room?
Economists within the establishment somewhere down the line hold surging

gold imports as the villain of the piece.
Professor R Vaidyanathan of Indian Institute of Management, Bangalore puts

the matter rather humorously when he says that even as such lecturing goes

on by sarkari experts, ladies in their own household would well be shopping

for gold! And that would include the FM's household too. What else would explain the sudden spurt in gold imports to about 150 tons per month on an average in the first two months of this fiscal when was 75 tons per month the previous fiscal?

REPLY

S Santhanam

In Reply to Mrs Kokila Mani 4 years ago

I agree with the views of Prof R Vaidyanathan. Households of Chettiars (Chidambarams) and Iyengars (Rangarjans) are known to hoard these precious metals including platinum. Every Chettiar rich man will have kilos of gold in his household. Every Iyengar household will have kilos of silver (as using silver vessels is considered sacred). Every marriage in these families means kilos of gold and silver from the girls' families to boys' families. Let them first liquidate them and demonstrate their dislike for these precious metals before they preach the message to others.

Vinay Joshi

In Reply to S Santhanam 4 years ago

Mr. S Sanathanam,

I'll answer Prof R.Vaidyanathan, IIM-B separetly.

How many Chettiars you KNOW WHO PURCHASED gold in this gold euphoria? Answer me with figures vis-a-vis Iyengars?

If they already have WHY ARE YOU QUESTIONING NOW?
WHAT IS THE RELEVANCE OF IT?
WHAT IT HAS TO DO WITH CAD?

The tainted Gurunath Meiyappan a 'chettiar', married to a 'TAM-BRAHM', BUT THE DOWRY SYSTEM PREVAILS, & transfer of gold & jewelry as CUSTOM HAS NOTHING TO DO WITH CAD?

WHAT IS YOUR CASE FOR LIQUIDATING PERSONAL GOLD?

I UNDERSTAND YOUR MISPLACED ANGER but EARNEST REQUEST TO FOLLOW THE STORY vis-a-vis the present CAD 'if you comment'.

Pl read my HEADER put up to the authour, Mr. Gurupur.

Regards,

nagesh kini

4 years ago

I'm in entire agreement with the really enlightened old man and woman - it is a fact of life, at least in India, for gold holdings to appreciate with time, no tax, no tedious TDS,no paper work to acquire or dispose above all no hassles whatsoever!
Gold is easy to store it can even be buried in walls or underground. No termites or rats to gnaw.
Who seeks returns when there is a safer insurance like gold that can be very easily encashed by mere delivery and no paperwork of any kind?

REPLY

Vinay Joshi

In Reply to nagesh kini 4 years ago

Hello Mr. Nagesh Anna,

Can you buy & sell gold without paper work? FCA, should answer!

So you know what the aspects are?

Or you mean sleazy deals - if no 'HALLMARK GOLD', or otherwise in proper deals but clandestine!

Read my 'Header' posted to the authour.

Regards,


nagesh kini

In Reply to Vinay Joshi 4 years ago

Mr. Joshi,
Please put an end to your old "Anna" stuff, here and now.
You don't need an FCA to answer your weird points that are all full of gas leading to nothing whatsoever meaningful. Instead suggest you come out with rational stuff!
I've read your so-called 'Header' - frankly I'm at a loss what you are trying to convey!

Vinay Joshi

In Reply to nagesh kini 4 years ago

Nagesh,

Done away as you do not want to be respectfully addressed.

Only the intelligentsia can understand what i write & have a focus UNDERSTANDING of my writings to reply.My writings are well understood in international media.

I do not want FCA to answer, in fact across the board i cast aspersions on FCA understandings & their own aspects. It seems you do not read the journals or stopped subscription.

SO I POINT OUT TO YOU ONLY YOUR OWN GAS!?

Further YOU never being practicing makes a lot of difference.

Gas will be filled in the balloon, helium, to be sent to the stratosphere heights to disseminate internet signals!

Irrational persons will ask for rational aspects not understood the difference.

Nagesh, tell me you were in the so called meet called by Sucheta on RBI cheque, you gave an unexplained an explanation.
[FYI sucheta had confirmed with me RBI ntfn, tho' she had prior info.]

You were the only FCA & an ICAI member - BUT YOU COULD NOT TAKE UP THE ASPECT TO ADVISE SUCHETA IN HER LETTERS TO RBI.

YOU SHOULD HAVE AS FCA & member ICAI, stated in the said meet 'THAT A CHEQUE IS AN INSTRUMENT UNDER THE NEGOTIABLE INSTRUMENT's ACT & IT CAN'T BE DECLINED. NON ACCEPTANCE OF THE CHEQUE[S], ulta-vires, just like refusal of legal tender.

IS IT YOUR GAS? Sucheta ANSWER,if you must!

Nagesh, at your age you may not comprehend certain intricate aspects, ORDINARILY YOU SHOULD HAVE ASKED TO AMEND BANKING REGULATION & NI ACT resp. Then only the non acceptance of cheques can be implemented.

Further Nagesh as FCA, and so called ACTIVIST with ML, as well a common citizen you are JUST NOT aware about IT sec 194 IA which mandates 1% deduction by the buyer & give to the seller only 99% of the sale deed value. Right!

Nagesh, YOU FCA & MEMBER ICAI, TELL ME - - [neither ML nor you have raised these follow issues.]

i] WHO WILL COMPENSATE FOR THE LOSS ON INTEREST ON THIS 1% DEDUCTION? WHEN WILL THE SELLER's REFUND COME?

ii]WHAT IF THE SELLER FALLS SHORT BY 1% TO MEET LTCG NORMS?

iii] ANY INDICATION THE TRANSACTION WILL BE TREATED AS COMPOSITE SALE/PURCHASE?

AS FCA & ICAI MEMBER YOU TELL ME HOW TO DEAL WITH JT. SELLERS UNDER LIMITS & SINGLE BUYER,vis-a-vis JT.BUYERS UNDER LIMIT WITH SINGLE SELLER.

iv] WHAT ABOUT JOINT BUYERS & JOINT SELLERS? WHAT ABOUT THEIR LIMITS?

v] WHAT ABOUT BANKS FINANCING? OK, THEY JUST DISCHARGE PURCHASE OBLIGATION BUT COMPLICATED.

SO THE ABOVE PUT UP THE LACUNA'S WHICH YOU UNAWARE OR ML!

But i find it 'laughable' your OBSERVATIONS AS ABOVE!?

IF YOU CAN'T UNDERSTAND THE HEADER THIS IS HEAD ON - GEAR UP TO UNDERSTAND IT --no genuine gold imports, CAD necessarily does not mean weakening of currency, YOU NEVER CAN UNDERSTAND RATE POLICY OF RBI OR FOR THAT MATTER EVEN UNION BUDGET [as evidenced with your comments then.]I DON'T THINK YOU'LL KNOW WHAT IS 'REER'.

Nagesh, i had simply stated THAT you FCA know the sleazy aspects.
[re-read] my above post.

I EXPECTED A PROFESSIONAL REPLY FROM AN ICAI MEMBER, FCA BUT IT'S JUST WANTING!?

INSTEAD THE ABOVE NOW SHOULD GET YOU RID OF YOUR GAS & BE COMMENTING ON GENUINE ASPECTS AS ACTIVISTS & "KNOWLEDGEABLE" AN ACTIVIST & AS AN ICAI MEMBER, FCA!.

Regards,

Balraj

4 years ago

How to make these good ideas reach FM, Government ..etc? OR Let Moneylife Invite FM the way they invited others like RBI Dy Governor, Vinod Rai, Janata party Leader...etc and put forward all these ideas before them?

REPLY

nagesh kini

In Reply to Balraj 4 years ago

A great idea Balraj!

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