RBI on Monday conducted an unprecedented level of liquidity infusion to the tune of Rs 3.3 lakh crore, in which banks bid for as much as Rs 4.5 lakh crore. The central bank said it would conduct a liquidity infusion auction of Rs 1 lakh crore on Tuesday as well, to help banks tide over the liquidity crisis.
People depositing money with banks in legal tender are allowed to withdraw the equivalent amount without any restriction.
A senior finance ministry source said making the use of debit cards and e-wallets compulsory across the board is legally untenable, but banks have been asked to insist their account holders use these instruments
The total balance in 255 million Jan Dhan accounts now stands at Rs 66,637 crore against Rs 45,637 crore on November 9.
When banks deposit their money with RBI, the central bank offers government securities of equal value. But now, it could be running out of enough securities to offer banks against the overnight deposits.
'There has to be an 18-month transition.' 'But if the government had some prior knowledge that the high value notes were being used for an imminent terrorist activity in the country, then we have to accept the step.'
The minders of the Modi government's economic policy believe it would take 7 to 8 quarters -- or till around late 2018 -- for the economy to reap the rewards of demonetisation.
Continued lack of consensus at next meeting could cast shadow on GST rollout by April 1.
Former NSA Shivshankar Menon said the defence minister did not have a right to voice his personal opinion on nuclear policy in public, particularly when that opinion contradicted the country's official policy.
'People are willing to face temporary inconvenience as they are determined to support PM Modi's crackdown on black money,' Commerce Minister Nirmala Sitharaman tells Archis Mohan.
With about 2,000 qualified engineers to service ATMs across the country, it is an uphill task to modify 220,000 machines.
The first tranche was raised a few weeks ago and the company was looking to raise more if needed.
The Centre is likely to introduce the Central GST and integrated GST bills in late November or early December in the ongoing session in the form of money Bills.
Will demonetisation lead to a rate cut, leading to higher quantum of lending?
A task force will speed up the recalibration of 200,000 ATMs so these can dispense the new Rs 2,000 notes.
ArthaKranti wants the government to abolish income tax and 56 other taxes and replace it by a banking transaction tax.
Budget announcements will come right before five states, with population of around 250 million, go to polls.
A government can't just take away public money, and the RBI can't extinguish its liability. 'The RBI has to honour the value any time a person with legal and taxed money lays claim on the value.'
A BJP leader said the money would be spent on welfare schemes for the poor, modernising of defence forces, and improving schools.
If RBI has to replace the entire stock of Rs 1,000 and Rs 500 notes with Rs 100 ones, the cost would be more than Rs 10,000 crore.
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