Government is going to create an Amazon like web portal for procuring its goods and services from vendors. If created, such an entity will undertake the entire procedures for procurement needed for the government in a centralized manner. Besides the digital non-paper format, the portal will bring completer transparency as information is easily accessible to the public. Revealing this move, Ms, Rita Teaotia, Department of Commerce, Ministry of Commerce & Industry told that it will save at least 10% of government money during procurement. At present, the public sector is around 25% of India’s GDP and procurement by the government is about 20% of the whole trade. The port
People’s resolve for bearing the pain of cashless days after demonetization will be tested during the first week of December. As the first monthly closing day passes on November 30, reports indicate that the informal sector and part-time labourers are about to bear the burnt. Shortage of cash takes away their purchasing power and the employers are making innovative ways like half salaries, half month closures etc. Unorganised sector laborares are least digitally prepared and educated and this may stop them from cushioning from the current stale mate. Reports from several cities indicate that employers offer only a part of their salary. Large number of shops and retail establ
The RBI has asked banks to consider deposit accumulated during the demonetization period as incremental Cash Reserve Ratio. This means that banks can’t lend out of the sudden flood of deposits. The RBI instructed that deposit from September 16 to November 11 as transitory deposit. Interestingly, RBI’s calculation of temporary deposit goes back to September 16 which means that demonetization related deposits started from that date onwards. There was accusation that deposits started going up high even two-three months back the demonetization date of November 8. The RBI press release indicated that a 100% CRR should be kept for the deposits accrued during this period. &l
Governor of the RBI, Urjit Patel is alive. Nearly 20 days after the denomination day, Patel has came into the light declaring that the Central Bank will make necessary actions to ease the ‘genuine pain of citizens.’ Throughout the last twenty days, there was a general confusion at Patel’s silence after demonetization and later it turned into anguish as he never bothered to face the public. The Governor has not mentioned anything about independent India’s biggest monetary event that came as a shock. He was conspicuously absent from the scene despite being the newly crowned Governor of the central bank. On the previous day, Union Minister Ravi Shankar Prasad
Nobody has expected that – the ruling BJP or even the Congress. Former PM and economist – Manmohan Singh made a scorching attack on demonetization. In a solo performance at Rajaya Sabha, Dr Singh who is known as the father of India’s economic reforms, described currency ban as an ‘organized loot and a legalized plunder’. His words were sharp as he asked the PM to name even a single country where people were not allowed to withdraw their deposits. After Dr Singh’s attack, Prime Minister Narendra Modi left the Rajya Sabha without making a reply. He is expected to make his point on Friday. Manmohan Singh who was attending the Parliament after a l
India is in a soul-searching debate about the effectiveness and consequences of PM Modi’s demonetization war on black money. The debate is started and led by the academicians and the media, and fortunately, it is yet to reach the common man. Ordinary people take pride that their sacrifice is worthful to bring down the rich and disloyal in their neighborhood. Their belief and commitment are indeed the best asset for the government to survive any potential popular outrage. PM Modi is perhaps one of the rare post-independence leaders who secures such a jealous level of trusts of the common man. But popular sentiments sometimes have only short run life. Especially they may die
The Chair of the US Fed, Janet Yellen indicated that the US central bank is going to make its anticipated rate hike soon. She signalled that an increase in short-term interest rates could “become appropriate relatively soon”, asserting that the US central bank is reluctant to delay it for too long. The Fed is trying to reduce unemployment while achieving a minimum level of inflation. The two set goals are maximum employment and price stability. Next meeting of the Fed which is going to take the critical rate hike decision is scheduled for December 13-14. In its latest policy review, the central bank stated that the case for higher rates had strengthened. T
After a chaotic period of monetary shock, the government has come out with a group of measures to arrest the difficult cash stringent situation in the country. To smoothen transactions, government has announced that old notes can be received in selected spots like petrol pumps etc up to 24th of this month. The decision was taken late Sunday night at the meeting of senior government officials. Now, people can use the denominated notes of Rs 500 and Rs 1000 at petrol pumps, government hospitals, government-run cooperative shops, air-ticket counters, milk booths, , burial grounds, international airports, to buy tickets at railway stations and for metro trains, to pay for medicines i
The country is witnessing an unparallel public support and sacrifice to fight black money after Prime Minister launched demonetization. At the same time, trends show liquidity paralysis is catching the economy that may affect even the country’s GDP growth. On the other side, bank staffs are working hard to meet both demonetization process and liquidity injection. Finance Minister indicated that the process of enabling new note delivery through the ATMs or recalibration will start in two weeks. He said that preparing the ATM for handling the newly designed thin notes of Rs 2000 and Rs 500 denominations has not done early as it may led to leak of the demonetizati
In a step that will address the present currency chaos, the Government today launched new Rs 500 notes. Previously, it was the most sought currency note. This step is expected to facilitate monetization as the new Rs 2000 notes seems to be awkward solution in meeting transaction needs of the people. The Rs 500 denomination was the largest component of the previous currency system as it constituted to nearly 48% value of the notes circulated. Non-issue of the new Rs 500 and Rs 1000 notes proved to be the main defect of the demonetization drive. It has created liquidity shocks in the system and currency chaos. Non-issue of these two most sought notes felt that demonetization was has
Dictionary on Indian Economy
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