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New 100-rupee note poses fresh headaches for ATM operators

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Rs. 100

Mumbai, July 21 : The Reserve Bank of India’s (RBI) announcement launching a new series of 100-rupee denomination notes has been greeted with trepidation by the major companies engaged in the manufacture and supply of Automatic Teller Machines (ATMs) in the country.

Like the new post-demonetisation Rs 2,000, Rs 500, Rs 200 and the new Rs 50 notes and Rs 10 notes, even the new lavender-coloured Rs 100 is a tad smaller in size compared to the blue-coloured Rs 100 notes currently in circulation.

While the existing Rs 100 notes are sized 157×73 mm, the new ones measure 142x66mm, as per the RBI announcement this week.

“This means that all the 237,000 ATMs in the country would again have to be re-calibrated to dispense the new Rs 100 notes. This entails a massive effort which is both time-consuming and adds to our costs,” Confederation of ATM Industry (CATMi) Director V. Balasubramanian told IANS.

For recalibrating all the ATMs in the country to enable them dispense the new Rs 100 notes, the operators need the concerned bank’s official Cash Agency and an engineer of the machine manufacturer together.

“Though the actual recalibration may take barely 20 minutes per ATM, there are huge logistical issues involved in getting the Cash Agency person and engineer together all the time. Even then, with best efforts they can recalibrate barely 15-20 ATMs per day depending on the banks’ cooperation. So, this will be a huge time-consuming and high-cost exercise at a national level,” Balasubramanian rued.

Hitachi Payment Services Managing Director Loney Antony estimates that the entire recalibration process could cost over Rs 1 billion (Rs 100 crore) and take a minimum of one year to complete.

“In fact, the recalibration of the new Rs 200 notes introduced last year is still not completed in all ATMs, so recalibration of the new Rs 100 notes could take even longer unless planned properly,” Antony cautioned.

The RBI said in its notification that initially, the new Rs 100 notes will be dispensed only through bank branches and printing and supply would gradually increase.

Antony said it is important to have sufficient supply of Rs 100 and Rs 200 notes to ensure there are enough lower denomination currency notes in circulation for all transactions.

Balasubramanian said the ATM industry is grappling with the problem of how to recalibrate the ATMs in terms of the new and old Rs 100 notes and may refrain from doing so till sufficient numbers of the new notes are available.

Euronet Services India Pvt. Ltd. Managing Director Himanshu Pujara said unless all the ATMs are recalibrated, the new notes will not be available through this channel to the people, and recalibration itself is a time-consuming and expensive process for the already struggling industry.

Balasubramanian — who is also the President of FSS Company that manufactures ATMs — said that since the old and new Rs 100 notes will co-exist till the RBI completely withdraws the old notes, “it will be difficult to recalibrate all the ATMs to support the new Rs.100 notes”.

“There is likelihood of an imbalance between the supply of the new notes and the withdrawal of the old notes, especially in the hinterland,” Balasubramanian pointed out.

In such a scenario, he thought it would be prudent to let the banks and service providers decide when to calibrate the ATMs for the new notes, depending on the “supply-withdrawal” situation of the old notes across all states over the next few quarters.

At present, as per National Payments Council of India Ltd (NPCIL), there are around 237,000 ATMs functional in the country, but to adequately cater to the entire country’s population, the need is almost three-four times more, or around a million ATMs.

Flying in the face of the government’s declarations about digitising the economy, a whopping 57 percent of all ATM transactions are only for cash withdrawals. Immediate Payment Service (IMPS) lags at 20 per cent followed by Point of Sale (PoS) 17 percent, and rest for Unified Payment Interface and mobile wallets. (Total = 100 percent, as per RBI).

Major industry players say that, barring the metros and urban centres, people in states like Uttar Pradesh, Maharashtra, Bihar, West Bengal, Madhya Pradesh and others have to travel 40 km or more to access an ATM.

“Moreover, as per official data, barely 30 per cent of bank account holders in the country regularly use their ATM cards… the others prefer cash transactions. There are problems of infrastructure and connectivity which hamper growth of ATMs network,” Balasubramanian pointed out.

India has among the lowest ATM penetration globally, averaging 8.9 ATMs per 100,000 population, compared to Brazil’s 119.6, Thailand’s 78, South Africa’s 60 and Malaysia’s 56.4.

Incidentally, China currently has around a staggering one million ATMs, which will touch 1.5 million by 2020.

(Qqaid Najmi can be contacted at [email protected])

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US bill over reciprocity of access to Tibet awaits Trump’s signature

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travel access to Tibet

Chicago, Dec 13 : The unanimous passage of a bill that insists on reciprocity between the US and China over travel access to Tibet is seen as a clear message that the US Congress is sending to Beijing about the situation in Tibet.

The Reciprocal Access to Tibet Act, which deals with “the level of access Chinese authorities granted US diplomats, journalists, and tourists to Tibetan areas in China”, seeks to deny admission to Chinese officials who prevent Americans from visiting Tibet.

It says, “The State Department shall report to Congress annually, identifying individuals who were blocked from US entry during the preceding year and a list of Chinese officials who were substantially involved in the formulation or execution of policies to restrict the access of US diplomats, journalists, and citizens to Tibetan areas.”

The bill now awaits signature by President Donald Trump to become law. Its passage was a result of a nearly four years of efforts by the International Campaign for Tibet (ICT) and other Tibetan groups under the leadership of ICT chair and Hollywood star Richard Gere, a passionate activist and a committed Buddhist, as well as its president Matteo Mecacci.

Asked how optimistic he is about Trump signing the bill into law, especially at a time when his administration is engaged in a tense trade war with Beijing, Mecacci told IANS in an interview via email, “The overwhelming support shown by the US Congress for this bill, which passed unanimously both in the House and the Senate, is sending a very clear message to the Chinese government that the American people care deeply about the situation inside Tibet, and are concerned about the isolation that China has imposed.”

He said this bill is about the “principle of reciprocity that complements the Trump Administration’s policy”. “The State Department has also conveyed, during a hearing in the Senate, that it shares the goals of the bill and will implement it. We are confident that President Trump will take all these elements into account, when it comes to signing the bill into law,” Mecacci said.

On how, once it becomes law, it might impact US-China relations in the specific context of Tibet, he said, “The State Department, which on December 4 expressed official support for the goals of the legislation and plans to implement it, will have to assess the level of access to Tibet for American citizens and identify the Chinese officials who are responsible for blocking access, and eventually denying them visas to the United States.

“This is about reciprocity and fairness, and it is very important that the United States challenges China’s policy not only on trade or economic issues, but also on civil and human rights, such us freedom of movement, freedom of information and the rule of law,” he said.

President Trump has not been known to pay particular attention to Tibet. It is questionable whether he is aware of the historic complexities of the problem. Given that, it has not been clear how he might approach the bill waiting for his signature.

However, Mecacci is optimistic. “As I mentioned, the US Administration has been following this bill very closely and supports its goals. In general, the Trump Administration has already issued a report on the status of Tibet negotiations in May 2018 in which it has outlined its position on the Tibetan issue.”

On whether the bill may become a sort of political football in the trade dispute, he said, “This legislation was introduced in Congress well before the beginning of the Trump Administration and of the trade dispute with China. For decades, the US Congress and US Administrations have supported the aspiration of the Tibetan people to a better life. This will continue beyond a trade dispute. Since it is about American interest, we do not see how this can be impacted by the trade dispute.”

(Mayank Chhaya is a senior journalist of Indian origin based in Chicago. He can be reached at [email protected])

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Modi’s BJP suffers defeat in Hindi heartland states

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Rahul Modi

Dec 12 : With good performance in assembly elections in three Hindi heartland states (Chattisgarh, Rajasthan and Madhya Pradesh), Rahul Gandhi, who took over the Congress reins as party President on December 16 last year, has proved the opponent BJP’s Modi that he has the power to defeat the political force of BJP- RSS that seek to divide the nation on communal lines.

But BJP suffered its worst defeat in these elections and Narendra Modi with 56-inch chest, who changed the very nature of politics and campaigning style after coming into power four years ago by making tall economic promises and showcasing Hindu nationalist views, failed to impress voters this time. He promised to give Rs 15 Lakh to very Indian, including creating one million jobs a month.

The Assembly results of five states is an indication that Modi’s brand is losing its luster.

Modi used every medium of technology from social networking sites, campaigning and even right wing organisations to scrutinize each and every speech and action of Congress president Rahul Gandhi and trying to build a fake propaganda of rejection but the fifth generation of Gandhi family leading the grand old party has successfully snatched two states – Chhattisgarh and Rajasthan – from the Modi-led BJP, while Congress is locked in a close fight in Madhya Pradesh in the semi-final test before the 2019 national election.

Rahul Gandhi hit the right chord by targeting Modi government on social and governance issues of farmers plight, youth unemployment, insecurity among minorities,corruption in Rafale deal, destruction and misuse of constitutional institutions like RBI, investigative agencies and educational institutions.This is quite evident from the latest development by the sudden resignation of the RBI Governor Urjit Patel.

This election has reflected the mood of the nation thus rejecting the element of fundamentalism, policy of divide and rule, giving importance to cow slaughter more than human lives and thus encouraging lynching by giving a free hand to his cabinet ministers to honour the culprits.

Rahul Gandhi addressed a press conference said that Prime Minister Narendra Modi had “failed to listen to the heartbeat of the nation.” Gandhi also said that “I was telling my mother that the absolute best thing for me was the 2014 election. I learnt a lot from that election. I learnt that the most important thing is humility,” said the 48-year-old Congress chief, who took a lot of the blame for the party’s non-stop election disasters. “Frankly Narendra Modi taught me the lesson-what not to do,” he added.

Congress makes an impressive comeback in the Chhattisgarh Assembly Election Result 2018 and is all set to end the 15-years rule of Raman Singh. Congress emerged as the winner in Rajasthan, Sachin Pilot and Ashok Gehlot are leading the talks for government formation in the state.

Madhya Pradesh Congress president Kamal Nath and party’s campaign committee chief Jyotiraditya Scindia are personally leading the effort to gather support from BSP and SP. In fact, Kamal Nath was believed to be in touch with BSP supremo Mayawati and SP chief Akhilesh Yadav.

Although he has been successful in extraditing Michel but Modi government failed to prevent economic offenders escaping from India with the taxpayers’money under their watch.

Rahul, who aggressively campaigned in the states by implementing his strategy of asking his party workers to engage in door to door campaigning and highlighting the failures of the current government and he himself addressed 82 rallies in poll bound states and religiously targeted Prime Minister Narendra Modi and the BJP on the Rafale deal, the Nirav Modi scam and other such topics that many said had no mass connect. He tore into PM Modi and controversially said, in rally after rally, “Chowkidar Chor Hai”. His speeches apparently found resonance with the voters but he also focused on optics.

BJP used every opportunity to mock the Congress president since the party was reduced to 44 seats in the 2014 Lok Sabha elections.

Now the time for the BJP is to introspect but the Saffron party hurriedly blamed the state chief ministers for the party’s defeat and said that “Modi is still popular among the masses and the election results do not reflect Central government policies led by Modi.”

Modi’s popularity is declining steadily and it all started with demonetisation which led to the closure of small and medium businesses and the collapse of small traders industry; faulty implementation of GST that jolted people’s confidence in him, steady steep hike in fuel prices, rampant corruption and high inflation.

Modi’s allies are concerned after seeing the results in cow belt, where the BJP’s domination has ended. Modi failed to deliver on the commitments he made during 2014 campaigning which backfired in these election results.

Blog : By Arti Bali,
arti

(Senior Journalist)

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Blow to BJP ahead of 2019 Lok Sabha polls – News Analysis

In the first instance of a party getting majority on its own in 30 years, BJP won 282 seats in Lok Sabha in 2014. The BJP-led NDA had won 336 seats out of 543.

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Congress workers Karnataka civic polls

The results in the Hindi heartland states of Madhya Pradesh, Chhattisgarh and Rajasthan came as a major shock for the Bharatiya Janata Party (BJP), which has won all the major states barring Delhi, Bihar, Punjab and Karnataka in elections held after the sweeping 2014 Lok Sabha victory.

The BJP was routed in Chhattisgarh and defeated in Rajasthan and Madhya Pradesh in closely-fought contests. The party mostly banked on the image of Chief Ministers Raman Singh, Shivraj Singh Chouhan to lift the party’s fortunes.

In Rajasthan, where opinion polls had written off the BJP, Prime Minister Narendra Modi and party chief Amit Shah put in extra efforts, besides banking on the hardcore Hindutva image of Uttar Pradesh Chief Minister Yogi Adityanath, to take the battle to the Congress, but still lost.

The BJP, however, managed to open its account in Mizoram, where the Mizo National Front (MNF) ousted the ruling Congress partty, but saw its numbers fall from five to one in Telangana, where the Telangana Rashtra Samithi swept the polls.

The results of these five states, which were dubbed the semifinals ahead of the next general elections in April-May 2019, could be a factor in the battle between the BJP-led National Democratic Alliance (NDA) and the Congress-led opposition.

The major issues raked up by Congress, specially the farm loan waiver amid an agrarian crisis across the country, employment and anger among upper caste, seems to have worked in its favour and could haunt the ruling dispensation if remedial measures are not taken.

The BJP is not ready, however, to accept the defeat as a referendum on the Modi government.

Union Finance Minister Arun Jaitley said issues in state elections are entirely different. The BJP won Madhya Pradesh, Rajasthan and Chhattisgarh in 2003 but lost the Lok sabha elections next year, he pointed out.

The general elections in 2019, he added, would be fought around Modi’s performance, with people voting for a tried and tested leadership instead of a non-ideological opposition coalition which is bound to collapse sooner than later.

The Congress, which had a disastrous performance in the 2014 Lok Sabha elections and suffered successive defeats in various Assembly elections, smiled for the first time after defeating the BJP in a direct contest in the three crucial states in north India.

Party president Rahul Gandhi, who campaigned vigorously, said the Assembly election results were a referendum on Prime Minister Narendra Modi’s non-performance on issues of unemployment, agrarian distress, corruption and negating the ill-effects of demonetisation.

Out of total 678 Assembly seats in the five states in the current round of elections, the Congress has won close to 300 seats while the BJP managed to win over 200 seats. In the 2013 Assembly polls, the BJP had won 377 seats in Madhya Pradesh, Rajasthan, Chhattisgarh and Mizoram while the Congress had won only 122 seats in these states.

In the 2014 Lok Sabha polls, the BJP had won 62 out of total 83 Lok Sabha constituencies of Madhya Pradesh, Rajasthan, Chhattisgarh, Telangana and Mizoram. Now the three Hindi heartland states will be ruled by Congress and the its impact would definitely be felt in the 2019 Lok Sabha polls.

In the first instance of a party getting majority on its own in 30 years, BJP won 282 seats in Lok Sabha in 2014. The BJP-led NDA had won 336 seats out of 543.

Its allies include the Shiv Sena, which has been on the war path for a while. Similarly, N. Chandrababu Naidu’s Telugu Desam Party (TDP) and Upendra Kushwaha’s Rashtriya Lok Samata Party (RLSP) have walked out of the NDA.

Since 2014, BJP has managed to retain just six Lok Sabha seats in by-polls. It won Lakhimpur in Assam, Shahdol in Madhya Pradesh, Beed and Palghar in Maharashtra, Vadodara in Gujarat and Shimoga in Karnataka.

In the last four years, the party has lost Lok Sabha by polls in Ratlam in Madhya Pradesh, Gurdaspur in Punjab, Alwar and Ajmer in Rajasthan, Kairana, Phulpur and Gorakhpur in Uttar Pradesh, Bhandara-Gondiya in Maharashtra and Bellary and Mandya constituencies in Karnataka.

The BJP, however, maintained the verdict was a mandate against the state governments and not against the Modi government.

“The results in five states clearly show there is no uniform trend across the country and local factors determined the outcome in each state. This is evident from the fact that even Congress suffered massive defeats in Mizoram and Telangana.

“Despite 15 years of anti-incumbancy in Madhya Pradesh, the BJP has put up a fight in Madhya Pradesh and has a major comeback in Rajasthan. The BJP’s and Congress’ vote share in both the states in Mandhya Pradesh and Rajasthan is almost tied which clearly show that the BJP has the potential to comeback with big victories in 2019 Lok Sabha polls,” BJP Spokeperson G.V. L. Narsimha Rao told IANS.

He also said whenever Congress has tied up with a regional party, it cost them votes.

(Brajendra Nath Singh can be contacted at [email protected])

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