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Demonetisation: States raise Concerns over Ban on Old Rs 500 and 1000 Currency Notes and its impact on State Treasuries

As much as Rs 14 lakh crore or 86 per cent of India's currency has been withdrawn and is getting replaced with new Rs 500 and Rs 2,000 rupee notes

Indian currency notes. Pixabay

New Delhi, Nov 20, 2016: A number of states- including West Bengal, Uttar Pradesh and Tamil Nadu, today have raised the issue of demonetization of 500 and 1000 rupee notes and its impact on state treasuries along with the day-to-day sufferings of lower and middle classes related to this decision with Union Finance Minister Arun Jaitley.

Before the start of the informal meeting that was called to end the deadlock over jurisdiction over assesses under the GST regime, sources said, West Bengal Finance Minister Amit Mitra said the ban on old currency notes would trigger recession as the industrial activity would be hurt and tax collection would recede, mentioned PTI.

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Apart from other states, Tamil Nadu has also joined the group saying that the industrial activity is affected and while Uttar Pradesh mentioned that the factories in Kanpur as well as in Moradabad have closed operations.

[bctt tweet=”Prime Minister Narendra Modi on November 8 announced demonetisation of 500 and 1,000 rupee notes.” username=””]

Thomas Isaac, Kerala Finance Minister said that numerous states have “reported informally” that they have seen a “significant decline in revenues”. “If 86 per cent of your money disappears, there is a problem for the people. There is a collateral impact on investments sentiments,” Isaac told reporters.

According to the PTI report, in a major assault on black money and terror financing, Prime Minister Narendra Modi on November 8 announced demonetisation of 500 and 1,000 rupee notes and asked holders of such notes to deposit them in bank accounts.

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As much as Rs 14 lakh crore or 86 per cent of India’s currency has been withdrawn and is getting replaced with new Rs 500 and Rs 2,000 rupee notes.

All states were in agreement that their revenues will get impacted as well as the employment will be hit, but nobody demanded a roll back, mentioned sources.

While West Bengal Chief Mamata Banerjee and Delhi CM Arvind Kejriwal have been demanding a roll back of demonetisation exercise, Samajwadi Party supremo Mulayam Singh Yadav demanded a short-term roll-back of demonetisation move saying that people should be given at least a week’s time before the ban on old currency notes.

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Even though many leaders are against the PM Narendra Modi’s demonetisation move, the common folks are supporting PM Modi’s masterstroke move towards curbing illegal money problems in a large manner, mentioned PTI. Let’s just say, this issue has both positive and negative effects and more debates about the necessity of a huge decision like this will follow.

– by NewsGram with PTI inputs


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Prince Charles Arrives in New Delhi for two day Visit to Meet PM Narendra Modi

Prince Charles, the Prince of Wales, accompanied by his wife arrived New Delhi for a two-day visit to India to complete their 10-day four-nation tour

Prince Charles
Prince Charles visits India with his wife for two days. Wikimedia.

New Delhi, Nov 9: Prince Charles, the Prince of Wales, accompanied by his wife, the Duchess of Cornwall, Camilla Parker-Bowles, arrived New Delhi on Wednesday on a two-day visit to India at the final leg of their 10-day four-nation tour that also took them to Singapore, Malaysia and Brunei.

“Their Royal Highnesses Prince of Wales and the Duchess of Cornwall arrive,” the British High Commission in India tweeted.

Prince Charles is scheduled to meet Prime Minister Narendra Modi on Wednesday evening and discuss a wide range of issues, including that of the Commonwealth Heads of Government Meeting (CHOGM) which will take place in April 2018 in the UK.

Prince Charles
Prince Charles arrives in India with his wife. IANS.

Ahead of the royal couple’s arrival, External Affairs Ministry spokesperson Raveesh Kumar said climate change, Sustainable Development Goals (SDGs), economic cooperation, and other bilateral issues would also come up for discussion.

Bilateral trade between India and Britain stands at $12.19 billion. India is the third largest investor in Britain and the second largest international job creator in that country.

Britain is the third largest inward investor in India, with a cumulative equity investment of $24.37 billion for the period April 2000-June 2017

The Indian diaspora in UK is one of the largest ethnic minority communities in the country, with the 2011 census recording approximately 1.5 million people of Indian origin equating to almost 1.8 percent of the population and contributing 6 per cent of the country’s GDP.

This will be Prince Charles ‘s ninth visit to India. He had earlier visited India in 1975, 1980, 1991, 1992, 2002, 2006, 2010 and 2013. (IANS)