While experts are postulating new theories and customers still facing dry ATMs, the cash chaos seems to have stemmed from a government decision. Last year it decided to stop printing of Rs 2,000 currency notes and forgot to revisit it. Sources said the government must have thought of phasing out Rs 2,000 banknotes at that time.
Plan and Policy
Plan & Policy
Even as the government and the Reserve Bank of India (RBI) have asserted that there is no currency shortage, SBI Research on Wednesday pegged the cash shortfall in the system at a whopping Rs 70,000 crore, which is a third of the monthly withdrawals at ATMs.
The central bureau of investigation (CBI) on Wednesday questioned Sunil Bhuta, chief financial officer (CFO) of NuPower Renewables, a company founded by the husband of ICICI Bank CEO and managing director Chanda Kochhar, in connection with an Rs 3,250 crore loan from the bank to the Videocon Group in 2012, officials said here.
Former Sebi chairman M Damodaran blamed the telephone calls from Delhi to Mumbai for the myriad problems that public sector banks face now and warned against their privatisation to resolve the crisis.
“Telephone calls from Delhi to Bombay, over the years, have been at the root of the problem of the public sector banks. People in Bombay have been unquestionably responding to the direction from Delhi,” Damodaran said told the students of the RBI-run National Institute of Bank Management here on Wednesday on their convocation.
The government has approached the National Company Law Appellate Tribunal (NCLAT) seeking modification of an NCLT order so that it can attach the properties of those involved in the $2 billion PNB fraud. In a petition, the corporate affairs ministry has also sought to invoke powers including the removal of the management and recovery of undue gains. The plea seeks modification of the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) by adding sections such as 241, 242, 246 read with 339 of the Companies Act.
Hyderabad: In an unprecedented move, the CPI(M) Central Committee on Wednesday did not allow general secretary Sitaram Yechury to present the crucial draft political resolution at the ongoing party congress here. The draft, which once adopted by the congress would finalise the political line of the CPI(M) for the next three years, was instead presented by former general secretary Prakash Karat.
A mega CPI(M) meet will give a new direction to the party on mobilising democratic forces to defeat the BJP, general secretary Sitaram Yechury said on Wednesday.
In his inaugural speech at the 22nd party congress being held here, Yechury said only the Left could give an alternative to the BJP’s “anti-people policies”.
The BJP on Wednesday appointed a new party president in Madhya Pradesh and will also replace its Rajasthan chief in a sign of major organisational revamp in the two poll-bound states where it has suffered a string of bypoll defeats to the Congress.
The government on Tuesday said it is working with the US to resolve all trade issues even as America has decided to review India’s eligibility to enjoy duty-free access for certain products under a tax benefit scheme.
The US has also added India to its watch list of countries alleging questionable foreign exchange policies. Besides, it has dragged India to WTO’s dispute settlement mechanism challenging Indian export incentive schemes.
With cash crunch in ATMs and banks reported from several parts of the country opposition on Tuesday slammed the government saying the “terror of note ban” has returned to haunt the people and dubbed the situation as a “financial emergency”.
Currency shortage was reported from parts of Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Bihar and poll-bound Karnataka among other states. Several ATMs in the national capital also saw long queues and soon ran out of cash.