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Former RBI-chief: Demonetisation pain is real; Authorities were not prepared

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Dr-C-Rangarajan

Hyderabad, February 18: Former governor of Reserve Bank, Dr C Rangarajan on Friday said demonetisation per se cannot check black money while tax and electoral reforms may do.

Citing unprecedented cash crunch following demonetisation, Rangarajan said demonetisation affected many small businesses and had an immediate adverse effect on the economy.

Dr Rangarajan was addressing a press conference at 32nd Conference of All India Reserve Bank Employees in Hyderabad on Friday evening, when he cited out the impact of noteban on economy.

He said, “It is the inadequate supply of new currency to replace old that has caused much of the storm.”

Rangarajan, who is also former chairman of Economic Advisory Council to the Prime Minister, said the immediate pain of noteban is real and tangible. “The sooner the phase comes to an end, the better for the economy,” he added.

Taking on to NDA government, the RBI’s former governor said, “In short, much of the controversy over demonetisation could have been avoided, had the authorities been better prepared.”

He also revealed that demonetisation was always considered as one of the possible instruments to neutralise black money but “it cannot be a standalone measure” to hold unaccounted income.

As for the Modi government’s demonetisation drive, he added, “It does not address the issue of how to prevent further accumulation of unaccounted income which needs measures like improved transparency in governance, revised tax structure and improved tax administration.”

The former RBI chief highlighted how the hurt by demonetisation is far greater than earlier two occasions on economy.

Also on Friday, the food-and-beverage giant Pepsico’s India-born CEO Indra Nooyi said demonetisation has had “significant impact” on her business in the last quarter of 2016 in India, there are still “lingering effects” of demonetisation and she hopes normalcy may roll out by the end of second quarter this year.

Just a day before, Managing Director of two- and three-wheeler major, Bajaj Auto had also termed the demonetisation drive as a “wrong” idea and said it has caused double digit degrowth for the industry and job losses.

Wefornews Bureau

India

All India Kisan Sabha to hold protests for loan waiver

AIKS will also extend its support to the protest march of ex-servicemen fighting for One Rank One Pension (OROP) on January 27.

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New Delhi, Dec 18 : Buoyed by the announcement of farm loan waiver by Madhya Pradesh and Chhattisgarh governments, Left-affiliated All India Kisan Sabha (AIKS) on Tuesday said it will hold another round of protest in the rural parts of the country to press for a complete loan waiver across the country and guaranteed remunerative crop prices.AIKS will also extend its support to the protest march of ex-servicemen fighting for One Rank One Pension (OROP) on January 27.

AIKS General Secretary Hannan Mollah said that ‘rail roko’ and ‘rasta roko’ will be held in all villages to urge BJP-led central government to hike the Minimum Support Price (MSP) for agriculture commodities as per the recommendations of Swaminathan Commission and waive loans of all farmers in the country.

“The outcome of recently-concluded elections showed that farm crisis was one of the major issues. The Congress governments in Madhya Pradesh and Chhattisgarh have waived farm loan because of the protests this year,” he said addressing a press conference.

“We have decided to keep momentum going till Lok Sabha elections to get our demands fulfilled. As many as 106 organisations under the banner of Bhumi Adhikar Andolan will participate in the protest,” he said.

The planned protest would be separate from the ones being held by All India Kisan Sangharsh Coordination Committee (AIKSCC) which represents over 200 farm outfits and the AIKS is also a part of it, Mollah added.

AIKS President Ashok Dhawale said Congress “showed no mercy to the farmers” by offering a loan waiver but farmers protests compelled it to do so.

Madhya Pradesh Chief Minister Kamal Nath has announced signing off the file on crop loan waiver of up to Rs 2 lakh as on March 30 this year.

Dhawale demanded the cut-off date be extended to December so as to make farmers, who have taken loan this year, free from the cycle of debt completely.

The AIKS leaders asked Congress governments to implement the loan waiver scheme without riders.

“Loan waiver scheme with conditions was a bad experience in BJP-led Maharashtra. In another BJP-ruled state of Uttar Pradesh, farmers received cheques of Re 1. So there should not be any condition,” Dhawale said.

Newly elected MLAs from Rajasthan, Girdhari Lal Mahiya and Balwan Pooniya, who contested on Communist Party of India’s (Marxist) tickets, said they would take up the cause with the government to make farmers in the state debt-free.

Pooniya said farmers were “looted” by the Modi government under Pradhan Mantri Fasal Bima Yojana, a crop insurance scheme, as the premium was high but compensation was low.

Expressing concerns over Congress President Rahul Gandhi’s remarks that loan waiver was not a solution, Mahiya said “It is hypocrisy. We will have to confront the government in the Assembly and on the road.”

Reacting to the NITI Ayog’s remarks that loan waiver is no answer to the debt trap, Mollah said the premier institution had become a “chamcha” (sycophant) of the BJP government.

“It is good for nothing. It agrees with whatever the government says,” he said.

On former RBI governor Raghuram Rajan remarks over the loan waiver, Mollah said “We know that it is not a solution. However, farmers are under debt because of low remuneration. They have been incurring losses for so many years. Let there be one-time loan waiver along with an announcement of the MSP fixed on Swaminathan commission’s recommendations, farmers will not need a loan waiver again.”

AIKS leader said they would meet Union Agriculture Minister Radha Mohan Singh over agrarian crisis in the country.

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FIR lodged against Shia Waqf Board chief for hurting sentiments of Sunnis

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Mumbai, Dec 18 : An FIR has been registered at JJ Marg police station against Uttar Pradesh Shia Central Waqf Board chief Waseem Rizvi by a Mumbai based organisation Raza Academy, for allegedly hurting religious statements of Sunni Muslims.

Earlier, the case was lodged against Rizvi on the basis of a complaint of the Sahaba Action Committee at Lucknow ‘s Chowk Police station.

In the complaint, the Sahaba Action Committee claimed that Rizvi had offended the members of Sunni sect of Islam by his remarks over their Caliphs.

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India retaliates after Pakistan violates ceasefire along LoC in Poonch

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Pulwama encounter

Srinagar, Dec 18 : India is strongly retaliated after Pakistan Army resorted to heavy mortar shelling    along the Line of Control (LoC) in Poonch sector of Jammu and Kashmir on Tuesday.

Pakistan Army  violated ceasefire by indiscriminate firing with small arms, automatics, and mortars .The troops guarding the borderline retaliated and the  exchange of fire was continuing intermittently  when last reports came in. The unprovoked firing from Pakistan side began in the evening.

On December 12, an encounter broke out between militants and security forces in Sopore area.

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