General Affairs
Modi to be present in Parliament for remaining 3 days of Winter Session: Venkaiah Naidu
-
Prime Minister Narendra Modi will be present in Parliament for remaining three days of the ongoing Winter Session, said Information and Broadcasting Minister M Venkaiah Naidu today.
Meanwhile, Congress has issued a three-line whip, asking all MPs to remain present in both houses of Parliament respectively. Besides, the Congress party strategy meeting would be held at 10.30 am on Wednesday.
The Opposition has been disrupting both the Houses of Parliament demanding, among other things, presence of the prime minister throughout the discussion on demonetisation.
While the Rajya Sabha has already started discussions on demonetisation initiative of the Narendra Modi government, the Lok Sabha has yet to initiate it. However, even in the Upper House, the discussion was disrupted over demand by the Opposition for the presence of the prime minister.
On its part, the treasury benches said Modi was present in both the Houses on different days. Yet, the Opposition created ruckus as a result of which the prime minister could not intervene in any discussion.
The ruling party has informed the Opposition that Modi would intervene in the discussion though the final reply would be made by Finance Minister Arun Jaitley.
The ball is now in the Opposition's court with Naidu informing that the prime minister will remain present on the remaining three days of the current session of Parliament.
Prime Minister Narendra Modi will be present in Parliament for remaining three days of the ongoing Winter Session, said Information and Broadcasting Minister M Venkaiah Naidu today.
Meanwhile, Congress has issued a three-line whip, asking all MPs to remain present in both houses of Parliament respectively. Besides, the Congress party strategy meeting would be held at 10.30 am on Wednesday.
The Opposition has been disrupting both the Houses of Parliament demanding, among other things, presence of the prime minister throughout the discussion on demonetisation.
While the Rajya Sabha has already started discussions on demonetisation initiative of the Narendra Modi government, the Lok Sabha has yet to initiate it. However, even in the Upper House, the discussion was disrupted over demand by the Opposition for the presence of the prime minister.
On its part, the treasury benches said Modi was present in both the Houses on different days. Yet, the Opposition created ruckus as a result of which the prime minister could not intervene in any discussion.
The ruling party has informed the Opposition that Modi would intervene in the discussion though the final reply would be made by Finance Minister Arun Jaitley.
The ball is now in the Opposition's court with Naidu informing that the prime minister will remain present on the remaining three days of the current session of Parliament.
All you need to know about the Rs 450-crore scam that put MoS Kiren Rijiju in a spot
-
Minister of State for Home Kiren Rijiju is taking immense heat from the opposition following reports of his, and his cousin's alleged involvement in a Rs 450 crore hydel project scam in Arunachal Pradesh.
"The minister must resign and a high level independent probe must be ordered. Enquiry into 28 minute conversation between Satish Verma and Rijiju's cousin should also be probed," said Congress spokeperson Randeep Surjewala.
Surjewala's demand was reiterated by Aam Aadmi Party member Ashish Khetan who said, "the Minister must be removed and a high level probe should be ordered."
#1 In a petition before the Central Administrative Tribunal (CAT), a Gujarat-cadre IPS officer Satish Verma has alleged that his services as the Central Vigilance Officer (CVO) of a power corporation were curtailed after he flagged a transportation scam worth Rs 450 crore involving Rijiju's cousin and a fraudulent land deal in Gujarat.
#2 Verma -- an NDA appointee who also assisted CBI in the Ishrat Jahan fake encounter case -- was the CVO of North Eastern Electrical Power Corporation (NEEPCO). His tenure was curtailed by a year in July and he was served a notice for alleged "misconduct" and "unauthorised absence" from duty by the Home Ministry.
#3 In his affidavit, Verma has said that all his outstation visits were accounted for and were done to investigate the fraudulent activities. He attributed his "absence" to the investigation and final unearthing of the scam.
#4 Verma has sent a 129-page report to CVC, CBI and Ministry of Power, in which he has alleged corruption in the construction of two dams for 600 MW Kameng Hydro Electric Project -- one of the biggest hydro-electric projects in Arunachal Pradesh.
#5 He has further alleged an "elaborate conspiracy" involving contractors, NEEPCO officials and the West Kameng district administration to defraud NEEPCO and the government of funds that "may extend up to Rs 450 crore." The site of the project -- West Kameng -- falls in Rijiju's parliamentary constituency Arunachal West.
#6 Verma alleges that several fake and inflated bills were presented by contractors to allegedly siphon off money in the name of transporting rocks needed for the dam construction. The report says that the transportation cost was decided arbitrarily, and many transport challans and records provided by the contractor, Patel Engineering Limited (PEL), were found to be fake.
#7 NEEPCO stopped the reimbursement of PEL's bills for the period between May and July 2015, after Verma sent an advisory to the Head of Project flagging the alleged irregularities. However, on November 9, MoS Kiren Rijiju wrote a letter to the Ministry of Power, saying the funds should be released.
#8 Apart from the report, evidence against Rijiju includes a taped conversation between Verma and Goboi Rijiju, in which the latter offered to help the CVO with a promotion, on the behest of 'bhaiya' (Kiren Rijiju), if the officer cleared the payments that had been stuck for months.
When questioned about his role in the alleged scam, the Minister of State for Home lost his cool. "Ye jo plant kar rahe hain news, wo hamare yahan jootay khaageyenge (Those who are planting this news will be beaten with shoes if they come to Arunachal Pradesh)," he said.
Later, however, he admitted to writing a letter 'based on appeals he received from people of his constituency, including Goboi'. At the same time, he dismissed all allegations of graft.
Minister of State for Home Kiren Rijiju is taking immense heat from the opposition following reports of his, and his cousin's alleged involvement in a Rs 450 crore hydel project scam in Arunachal Pradesh.
"The minister must resign and a high level independent probe must be ordered. Enquiry into 28 minute conversation between Satish Verma and Rijiju's cousin should also be probed," said Congress spokeperson Randeep Surjewala.
Surjewala's demand was reiterated by Aam Aadmi Party member Ashish Khetan who said, "the Minister must be removed and a high level probe should be ordered."
#1 In a petition before the Central Administrative Tribunal (CAT), a Gujarat-cadre IPS officer Satish Verma has alleged that his services as the Central Vigilance Officer (CVO) of a power corporation were curtailed after he flagged a transportation scam worth Rs 450 crore involving Rijiju's cousin and a fraudulent land deal in Gujarat.
#2 Verma -- an NDA appointee who also assisted CBI in the Ishrat Jahan fake encounter case -- was the CVO of North Eastern Electrical Power Corporation (NEEPCO). His tenure was curtailed by a year in July and he was served a notice for alleged "misconduct" and "unauthorised absence" from duty by the Home Ministry.
#3 In his affidavit, Verma has said that all his outstation visits were accounted for and were done to investigate the fraudulent activities. He attributed his "absence" to the investigation and final unearthing of the scam.
#4 Verma has sent a 129-page report to CVC, CBI and Ministry of Power, in which he has alleged corruption in the construction of two dams for 600 MW Kameng Hydro Electric Project -- one of the biggest hydro-electric projects in Arunachal Pradesh.
#5 He has further alleged an "elaborate conspiracy" involving contractors, NEEPCO officials and the West Kameng district administration to defraud NEEPCO and the government of funds that "may extend up to Rs 450 crore." The site of the project -- West Kameng -- falls in Rijiju's parliamentary constituency Arunachal West.
#6 Verma alleges that several fake and inflated bills were presented by contractors to allegedly siphon off money in the name of transporting rocks needed for the dam construction. The report says that the transportation cost was decided arbitrarily, and many transport challans and records provided by the contractor, Patel Engineering Limited (PEL), were found to be fake.
#7 NEEPCO stopped the reimbursement of PEL's bills for the period between May and July 2015, after Verma sent an advisory to the Head of Project flagging the alleged irregularities. However, on November 9, MoS Kiren Rijiju wrote a letter to the Ministry of Power, saying the funds should be released.
#8 Apart from the report, evidence against Rijiju includes a taped conversation between Verma and Goboi Rijiju, in which the latter offered to help the CVO with a promotion, on the behest of 'bhaiya' (Kiren Rijiju), if the officer cleared the payments that had been stuck for months.
When questioned about his role in the alleged scam, the Minister of State for Home lost his cool. "Ye jo plant kar rahe hain news, wo hamare yahan jootay khaageyenge (Those who are planting this news will be beaten with shoes if they come to Arunachal Pradesh)," he said.
Later, however, he admitted to writing a letter 'based on appeals he received from people of his constituency, including Goboi'. At the same time, he dismissed all allegations of graft.
Forget being first, Jharkhand cannot become a cashless state in near future
-
It's one of India's poorest states and yet aspires to be first in the country to go cashless -- if one is to believe Chief Minister Raghubar Das.
At the Cashless Jharkhand Krishak Samvad 2016 on Sunday, the Jharkhand chief minister said the government has set a target to make Jharkhand a cashless state by March 31, 2017. In the meantime, Goa has already announced that it will go entirely cashless from December 31.
However, given the state of power, internet connectivity and other related infrastructure in the state, the idea looks more like a pipe dream.
Internet speed a problem
The state is also known for its difficult geographical terrain, with the majority of its 3.3 crore (2011 census) population living in rural areas -- and that too below the poverty line.
None of the telecom service providers in the state provide internet speed of 2 MBPS despite the claims of providing speed up to 5 MBPS. Be it private companies like Airtel, Vodafone and Aircel, or the state-run BSNL, they have all failed to provide high-speed internet services in Jharkhand so far.
While Airtel and Reliance Jio have launched their 4G operations in the state, one wonders what miracles these services would provide given that 2G and 3G speeds are disgustingly slow.
Lack of connectivity
The number of mobile phone users in the state stands at 1.59 crore, but they suffer for want of good connectivity. Many of these users live in rural pockets and villages where the access to internet is negligible, to say the least.
As of now only 1,427 panchayts in the state have access to broadband, while 4,459 panchayats do not have broadband or internet facility -- something that is almost a precondition for successful accomplishment of the Digital India initiative.
Lack of adequate power supply is also cited as one of the prime reasons for hindrance in internet connectivity in the state.
Since Independence -- Jharkhand was a part of Bihar and was named a separate state in 2000 -- power has reached only 38 lakh homes in the state and there are still 30 lakh unlit homes.
Most banks in rural areas
Coming to banks, of the 2,900 branches in the state, nearly 70 per cent are located in rural areas or smaller towns. They, of course, have core banking facilities but unavailability of internet, WiFi or broadband connectivity renders them as good as not being there at all.
An official of a leading state-run bank pointed out that connectivity was their biggest problem, because of which at least 30 per cent of the branches remain paralysed.
"The dream of cashless Jharkhand would only be realised if internet connectivity improves in the state. On several occasions, this issue has been put before the chief minister," a bank official said.
Even in the state capital Ranchi, one can frequently find a 'link fail' board hung outside ATMs and bank counters, mocking at customers.
Grossly under-prepared
Another factor is that most of the app-based payment services work on Android-supported smartphones that are available with, and used only by, the youth in cities and urban pockets. Many beyond urban areas can't afford such devices.
So, how will the state government first make Android-based phones available to the people and then train them in their use remains a question without a satisfactory answer.
With Jharkhand grossly unprepared to embrace the cashless concept, let alone becoming the first cashless state, the chief minister and his team should have first worked towards putting in place the basic requirements for this.
But, surpriisngly though, Raghubar Das has urged people to contribute towards making Jharkhand a cashless state. He also launched the 'Cashless Jharkhand' campaign from the state capital, saying: "Small steps lead to big goals."
It's one of India's poorest states and yet aspires to be first in the country to go cashless -- if one is to believe Chief Minister Raghubar Das.
At the Cashless Jharkhand Krishak Samvad 2016 on Sunday, the Jharkhand chief minister said the government has set a target to make Jharkhand a cashless state by March 31, 2017. In the meantime, Goa has already announced that it will go entirely cashless from December 31.
However, given the state of power, internet connectivity and other related infrastructure in the state, the idea looks more like a pipe dream.
Internet speed a problem
The state is also known for its difficult geographical terrain, with the majority of its 3.3 crore (2011 census) population living in rural areas -- and that too below the poverty line.
None of the telecom service providers in the state provide internet speed of 2 MBPS despite the claims of providing speed up to 5 MBPS. Be it private companies like Airtel, Vodafone and Aircel, or the state-run BSNL, they have all failed to provide high-speed internet services in Jharkhand so far.
While Airtel and Reliance Jio have launched their 4G operations in the state, one wonders what miracles these services would provide given that 2G and 3G speeds are disgustingly slow.
While Airtel and Reliance Jio have launched their 4G operations in the state, one wonders what miracles these services would provide given that 2G and 3G speeds are disgustingly slow.
Lack of connectivity
The number of mobile phone users in the state stands at 1.59 crore, but they suffer for want of good connectivity. Many of these users live in rural pockets and villages where the access to internet is negligible, to say the least.
As of now only 1,427 panchayts in the state have access to broadband, while 4,459 panchayats do not have broadband or internet facility -- something that is almost a precondition for successful accomplishment of the Digital India initiative.
Lack of adequate power supply is also cited as one of the prime reasons for hindrance in internet connectivity in the state.
Since Independence -- Jharkhand was a part of Bihar and was named a separate state in 2000 -- power has reached only 38 lakh homes in the state and there are still 30 lakh unlit homes.
Most banks in rural areas
Coming to banks, of the 2,900 branches in the state, nearly 70 per cent are located in rural areas or smaller towns. They, of course, have core banking facilities but unavailability of internet, WiFi or broadband connectivity renders them as good as not being there at all.
An official of a leading state-run bank pointed out that connectivity was their biggest problem, because of which at least 30 per cent of the branches remain paralysed.
"The dream of cashless Jharkhand would only be realised if internet connectivity improves in the state. On several occasions, this issue has been put before the chief minister," a bank official said.
Even in the state capital Ranchi, one can frequently find a 'link fail' board hung outside ATMs and bank counters, mocking at customers.
Grossly under-prepared
Another factor is that most of the app-based payment services work on Android-supported smartphones that are available with, and used only by, the youth in cities and urban pockets. Many beyond urban areas can't afford such devices.
So, how will the state government first make Android-based phones available to the people and then train them in their use remains a question without a satisfactory answer.
With Jharkhand grossly unprepared to embrace the cashless concept, let alone becoming the first cashless state, the chief minister and his team should have first worked towards putting in place the basic requirements for this.
But, surpriisngly though, Raghubar Das has urged people to contribute towards making Jharkhand a cashless state. He also launched the 'Cashless Jharkhand' campaign from the state capital, saying: "Small steps lead to big goals."
Congress uncomfortable with Modi government's anti-corruption steps: Jaitley
-
Finance Minister Arun Jaitley launched an offensive against Congress and charged that corruption scams peaked in the UPA's period.
"Congress was in power from 2004 to 2014. But no step was taken to check black money. The second feature of that government was rampant corruption like 2G and coal block allocation scams," he said.
He further said, "Given this scandalous record, it (Congress) is uncomfortable with anti-corruption steps. So, it is understandable that they are uncomfortable with this strong step by the Modi government."
The Minister said during the UPA regime, high denomination currency went up from 36 per cent to 85 cent. But the Narendra Modi government was overhauling the system. The demonetisation move was launched on November 8. That decision was a step forward in that direction, he said.
Jaitley admitted that few people were trying to take advantage of the situation arising out of demonetisation with the connivance of some bank officials. But the government agencies are keeping eye on these acts. Those people will have to pay heavy prices, he said.
'SIGNIFICANT AMOUNT OF CASH TO BE INJECTED SOON'
He said though paper currency will still exist, it will move towards digital economy. He assured that significant amount will be injected in the banks in the course of next three weeks. Circulation of money will help to release the pressure. "We are now rapidly completing the demonetisation scheme," he said.
'STRATEGY TO MOVE TO LOW CASH ECONOMY'
The minister said the Narendra Modi government's strategy is to move to low cash economy. The future transaction will be more in digital. Therefore, taxes will increase and social cost is likely to go down, he said.
The Finance Minister disclosed that more actions would be taken in future to bring transparency. "We are ready to debate in Parliament, therefore, rise above slogan and see the positive aspect of this movement," he said.
Future transactions will be substantially digital and once they are substantially digital they get caught in the tax net, he said.
Finance Minister Arun Jaitley launched an offensive against Congress and charged that corruption scams peaked in the UPA's period.
"Congress was in power from 2004 to 2014. But no step was taken to check black money. The second feature of that government was rampant corruption like 2G and coal block allocation scams," he said.
He further said, "Given this scandalous record, it (Congress) is uncomfortable with anti-corruption steps. So, it is understandable that they are uncomfortable with this strong step by the Modi government."
The Minister said during the UPA regime, high denomination currency went up from 36 per cent to 85 cent. But the Narendra Modi government was overhauling the system. The demonetisation move was launched on November 8. That decision was a step forward in that direction, he said.
Jaitley admitted that few people were trying to take advantage of the situation arising out of demonetisation with the connivance of some bank officials. But the government agencies are keeping eye on these acts. Those people will have to pay heavy prices, he said.
'SIGNIFICANT AMOUNT OF CASH TO BE INJECTED SOON'
He said though paper currency will still exist, it will move towards digital economy. He assured that significant amount will be injected in the banks in the course of next three weeks. Circulation of money will help to release the pressure. "We are now rapidly completing the demonetisation scheme," he said.
'STRATEGY TO MOVE TO LOW CASH ECONOMY'
The minister said the Narendra Modi government's strategy is to move to low cash economy. The future transaction will be more in digital. Therefore, taxes will increase and social cost is likely to go down, he said.
The Finance Minister disclosed that more actions would be taken in future to bring transparency. "We are ready to debate in Parliament, therefore, rise above slogan and see the positive aspect of this movement," he said.
Future transactions will be substantially digital and once they are substantially digital they get caught in the tax net, he said.
Preserve CCTV footages to spot currency hoarders: RBI to banks
-
RBI has asked banks to preserve CCTV recordings of operations at bank branches and currency chests to help law enforcement agencies in identifying people engaged in hoarding of new notes post demonetisation.
The Reserve Bank, in a notification issued today, said banks should "preserve CCTV recordings of operations at bank branches and currency chests for the period from November 8 to December 30, 2016, until further instructions".
The central bank said the move will "facilitate coordinated and effective action by the enforcement agencies in dealing with matters relating to illegal accumulation of new currency notes".
Earlier in October, the RBI had asked banks to cover the banking hall/area and counters under CCTV surveillance and recording and preserve the recording to help identify people abetting circulation of counterfeit notes.
After demonetisation, there have been reports of hoarding of new currency notes by unscrupulous elements at various bank branches across the country.
The Income-Tax Department is carrying out raids across the country on a regular basis since demonetisation to nab new currency hoarders and several people, both individuals as well as bank officials, have been booked so far for carrying out such illegal activities.
The government has said abolishment of these high denomination banknotes is intended to bring back unaccounted money into the system, curb fake currency circulation as well as to deter terror financing.
RBI has asked banks to preserve CCTV recordings of operations at bank branches and currency chests to help law enforcement agencies in identifying people engaged in hoarding of new notes post demonetisation.
The Reserve Bank, in a notification issued today, said banks should "preserve CCTV recordings of operations at bank branches and currency chests for the period from November 8 to December 30, 2016, until further instructions".
The central bank said the move will "facilitate coordinated and effective action by the enforcement agencies in dealing with matters relating to illegal accumulation of new currency notes".
Earlier in October, the RBI had asked banks to cover the banking hall/area and counters under CCTV surveillance and recording and preserve the recording to help identify people abetting circulation of counterfeit notes.
After demonetisation, there have been reports of hoarding of new currency notes by unscrupulous elements at various bank branches across the country.
The Income-Tax Department is carrying out raids across the country on a regular basis since demonetisation to nab new currency hoarders and several people, both individuals as well as bank officials, have been booked so far for carrying out such illegal activities.
The government has said abolishment of these high denomination banknotes is intended to bring back unaccounted money into the system, curb fake currency circulation as well as to deter terror financing.Business Affairs
PM Modi's cash crackdown sends retail inflation to two-year low
-
India's retail inflation cooled to a two-year low in November after Prime Minister Narendra Modi's shock currency replacement programme dented consumer spending, fuelling hopes of an interest rate cut by the RBI at its next policy review.
Consumer prices rose by an annual 3.63 percent last month, their slowest pace since November 2014, government data showed on Tuesday. Economists surveyed by Reuters had expected prices to rise 3.90 percent year-on-year, compared with a 4.20 gain in October.
Food inflation was 2.11 percent last month, lower than October's 3.32 percent.
Modi's sudden move on November 8 to cancel 500-rupee and 1,000-rupee banknotes, which accounted for 86 percent of the cash circulating in Asia's third-largest economy, has disrupted daily life, depressing consumer demand.
People struggling to get new notes are holding back on spending, except for immediate and urgent needs.
November's reading is way below the Reserve Bank of India's (RBI) 5 percent inflation target for March 2017 as well as the medium-term target of 4 percent.
With the cash shortage hitting consumer demand, some economists expect headline retail inflation to stay below 4 percent in coming months and undershoot the RBI's March target by at least 50 basis points.
"I expect the demonetisation impact to help cool off inflation till February, due to demand contraction," said Rupa Rege Nitsure, chief economist at L&T Finance Holdings in Mumbai.
"I expect RBI to cut rates in February."
In a sign of things to come, Indian services activity plunged into contraction in November for the first time since June 2015, due to a sharp decline in demand, a survey showed, while factory activity also slowed.
Still, the RBI surprised investors last week by keeping interest rates on hold, saying the impact of the currency swap programme on the economy would be transitory.
The central bank also flagged inflationary risks emanating from the currency shortages that could endanger the winter crop, and an uncertain outlook for global crude prices and increasing volatility in the foreign exchange market.
Crude oil prices this week hit their highest level since mid-2015, after the world's top crude producers agreed to the first joint output cut since 2001.
The U.S. dollar's rally against emerging market currencies, such as the rupee, on bets that Donald Trump will adopt policies to spark growth, has also raised the spectre of imported inflation.
"There is limited scope for deeper easing," said Abhishek Upadhyay, an economist at ICICI Securities Primary Dealership.
India's retail inflation cooled to a two-year low in November after Prime Minister Narendra Modi's shock currency replacement programme dented consumer spending, fuelling hopes of an interest rate cut by the RBI at its next policy review.
Consumer prices rose by an annual 3.63 percent last month, their slowest pace since November 2014, government data showed on Tuesday. Economists surveyed by Reuters had expected prices to rise 3.90 percent year-on-year, compared with a 4.20 gain in October.
Food inflation was 2.11 percent last month, lower than October's 3.32 percent.
Modi's sudden move on November 8 to cancel 500-rupee and 1,000-rupee banknotes, which accounted for 86 percent of the cash circulating in Asia's third-largest economy, has disrupted daily life, depressing consumer demand.
People struggling to get new notes are holding back on spending, except for immediate and urgent needs.
November's reading is way below the Reserve Bank of India's (RBI) 5 percent inflation target for March 2017 as well as the medium-term target of 4 percent.
With the cash shortage hitting consumer demand, some economists expect headline retail inflation to stay below 4 percent in coming months and undershoot the RBI's March target by at least 50 basis points.
"I expect the demonetisation impact to help cool off inflation till February, due to demand contraction," said Rupa Rege Nitsure, chief economist at L&T Finance Holdings in Mumbai.
"I expect RBI to cut rates in February."
In a sign of things to come, Indian services activity plunged into contraction in November for the first time since June 2015, due to a sharp decline in demand, a survey showed, while factory activity also slowed.
Still, the RBI surprised investors last week by keeping interest rates on hold, saying the impact of the currency swap programme on the economy would be transitory.
The central bank also flagged inflationary risks emanating from the currency shortages that could endanger the winter crop, and an uncertain outlook for global crude prices and increasing volatility in the foreign exchange market.
Crude oil prices this week hit their highest level since mid-2015, after the world's top crude producers agreed to the first joint output cut since 2001.
The U.S. dollar's rally against emerging market currencies, such as the rupee, on bets that Donald Trump will adopt policies to spark growth, has also raised the spectre of imported inflation.
"There is limited scope for deeper easing," said Abhishek Upadhyay, an economist at ICICI Securities Primary Dealership.
Customer complaints against banks at an all-time high
-
The number of complaints received under the Banking Ombudsman Scheme (BOS) has increased from 4,994 in the year 1999/2000 to 1,02,894 in 2015/16. Compared to the previous year, there was a 21 per cent increase in the complaints received in the office of the banking ombudsman (OBOs) during the year. This is the highest number of complaints received since the inception of the scheme.
On one hand, it brings to the fore the significant responsibility of addressing the mounting challenges placed before the Reserve Bank of India (RBI) and the banking industry at large on consumer protection, on the other it managed to dispose 1,01,148 (95 per cent) of the complaints as on June 30, 2016.
Failure to meet commitments and non-observance of the Fair Practices Code/ BCSBI Codes were the major category of complaints received in the year 2015/16. Banks need to give adequate attention to meeting commitments made to customers, and also impart appropriate training to their frontline staff on understanding the Fair Practices Code and BCSBI Codes.
The BOS provides 27 grounds on which complaints can be lodged with the OBO. Complaints received under these grounds are clubbed into broad categories.
Figures in bracket indicate percentage to total complaints of the respective years; Source: RBI
Card-related complaints constituted 21.2 per cent of the total complaints, and formed the second largest category of complaints. In percentage terms, proportion of card-related complaints to total complaints remained the same as that of last year, but in absolute terms there was an increase of 3,698 complaints during 2015/16.
Out of the total of 21,821 card-related complaints, 13,081 complaints were pertaining to ATM/debit cards (12.7 per cent), of which 8,259 complaints were regarding failed ATM withdrawal transactions involving short dispensation/non-dispensation of cash, including alleged fraudulent withdrawals from ATMs.
Whereas, 8,740 complaints were pertaining to credit card operations - almost 9 per cent of complaints received. The main causes for credit card complaints were the issue of unsolicited cards, sale of unsolicited insurance policies, and recovery of premium along with card charges, charging of annual fees despite being offered as 'free' card, authorisation of loans over phone, wrong billing, settlement offers conveyed telephonically, non-settlement of insurance claims after the demise of the card holder, exorbitant charges, inappropriate practices by recovery agents and wrong reporting of credit information by banks to credit information companies.
Around 5.3 per cent of the total complaints pertained to 'loans and advances'. The major issues were non-sanction/delay in sanction of loans, charging of excessive rate of interest, non-return of title deeds, non-issuance of no due certificate, education loans, wrong/delayed reporting to CIBIL. Complaints received on pension-related issues constituted 6.2 per cent of the total number.
Major reasons for these complaints were delayed payments, errors in calculations, difficulties in converting the pension to family pension on demise of pensioner, non-cooperation to the pensioners by the bank.
'Levy of charges without prior notice' continued to be one of the major subsets of complaints - 5.5 per cent complaints were in this category. These were mainly regarding charges for non-maintenance of minimum balance, processing fees, pre-payment penalties, and cheque collection charges.
Complaints in the category of 'Deposit Accounts' constituted 4.9 per cent of complaints received. Delays in credit, non-credit of proceeds to parties accounts, non-payment of deposit or non-observance of the RBI directives, if any, applicable to rate of interest on deposits in savings, current or other account maintained with a bank, were the major reasons for complaints in this category.
Non-payment or delay in payment of inward remittances and non-payment or inordinate delay in the payment or collection of cheques, drafts and bills were the major reasons for 2.4 per cent complaints received under the category of 'Remittances'. Complaints in the 'Others' category were on grounds such as non-adherence to prescribed working hours, delay in providing banking facilities, refusal/delay in accepting payment towards taxes as required by RBI/government, refusal/delay in issuing/servicing or redemption of government securities, non-adherence to RBI directives.
These complaints constituted 16.5 per cent of the total complaints. Complaints under the 'Out of Subject' category were ones not relating to the grounds specified in BOS. 3.7 per cent of the complaints received during the year were in this category. Lack of awareness among the public about applicability of the BOS is the primary reason for such complaints.
The number of complaints received under the Banking Ombudsman Scheme (BOS) has increased from 4,994 in the year 1999/2000 to 1,02,894 in 2015/16. Compared to the previous year, there was a 21 per cent increase in the complaints received in the office of the banking ombudsman (OBOs) during the year. This is the highest number of complaints received since the inception of the scheme.
On one hand, it brings to the fore the significant responsibility of addressing the mounting challenges placed before the Reserve Bank of India (RBI) and the banking industry at large on consumer protection, on the other it managed to dispose 1,01,148 (95 per cent) of the complaints as on June 30, 2016.
Failure to meet commitments and non-observance of the Fair Practices Code/ BCSBI Codes were the major category of complaints received in the year 2015/16. Banks need to give adequate attention to meeting commitments made to customers, and also impart appropriate training to their frontline staff on understanding the Fair Practices Code and BCSBI Codes.
The BOS provides 27 grounds on which complaints can be lodged with the OBO. Complaints received under these grounds are clubbed into broad categories.
Figures in bracket indicate percentage to total complaints of the respective years; Source: RBI
Card-related complaints constituted 21.2 per cent of the total complaints, and formed the second largest category of complaints. In percentage terms, proportion of card-related complaints to total complaints remained the same as that of last year, but in absolute terms there was an increase of 3,698 complaints during 2015/16.
Out of the total of 21,821 card-related complaints, 13,081 complaints were pertaining to ATM/debit cards (12.7 per cent), of which 8,259 complaints were regarding failed ATM withdrawal transactions involving short dispensation/non-dispensation of cash, including alleged fraudulent withdrawals from ATMs.
Whereas, 8,740 complaints were pertaining to credit card operations - almost 9 per cent of complaints received. The main causes for credit card complaints were the issue of unsolicited cards, sale of unsolicited insurance policies, and recovery of premium along with card charges, charging of annual fees despite being offered as 'free' card, authorisation of loans over phone, wrong billing, settlement offers conveyed telephonically, non-settlement of insurance claims after the demise of the card holder, exorbitant charges, inappropriate practices by recovery agents and wrong reporting of credit information by banks to credit information companies.
Around 5.3 per cent of the total complaints pertained to 'loans and advances'. The major issues were non-sanction/delay in sanction of loans, charging of excessive rate of interest, non-return of title deeds, non-issuance of no due certificate, education loans, wrong/delayed reporting to CIBIL. Complaints received on pension-related issues constituted 6.2 per cent of the total number.
Major reasons for these complaints were delayed payments, errors in calculations, difficulties in converting the pension to family pension on demise of pensioner, non-cooperation to the pensioners by the bank.
'Levy of charges without prior notice' continued to be one of the major subsets of complaints - 5.5 per cent complaints were in this category. These were mainly regarding charges for non-maintenance of minimum balance, processing fees, pre-payment penalties, and cheque collection charges.
Complaints in the category of 'Deposit Accounts' constituted 4.9 per cent of complaints received. Delays in credit, non-credit of proceeds to parties accounts, non-payment of deposit or non-observance of the RBI directives, if any, applicable to rate of interest on deposits in savings, current or other account maintained with a bank, were the major reasons for complaints in this category.
Non-payment or delay in payment of inward remittances and non-payment or inordinate delay in the payment or collection of cheques, drafts and bills were the major reasons for 2.4 per cent complaints received under the category of 'Remittances'. Complaints in the 'Others' category were on grounds such as non-adherence to prescribed working hours, delay in providing banking facilities, refusal/delay in accepting payment towards taxes as required by RBI/government, refusal/delay in issuing/servicing or redemption of government securities, non-adherence to RBI directives.
These complaints constituted 16.5 per cent of the total complaints. Complaints under the 'Out of Subject' category were ones not relating to the grounds specified in BOS. 3.7 per cent of the complaints received during the year were in this category. Lack of awareness among the public about applicability of the BOS is the primary reason for such complaints.
Arun Jaitley hints at low tax rates due to demonetisation, digi-payments
-
Finance Minister Arun Jaitley on Tuesday hinted at lower direct and indirect tax rates in the future as demonetisation results in higher tax revenues from unaccounted wealth coming into system.
He also warned of a "very heavy price" that unscrupulous elements will have to pay for amassing large amounts of cash unlawfully, saying agencies are keeping a close eye on cash accumulations.
The November 8 announcement by government to demonetise high value notes has in one stroke junked 86 per cent of the currency in circulation and holders of the discontinued notes can deposit them in banks before the end of the year and withdraw money in new currency.
The money being deposited has to be accounted for and taxes paid - 50 per cent on voluntary disclosures of unaccounted money and 85 per cent for any failures.
"So much money...operating as loose cash in the system has today come into the banking system," he said. "It has to be accounted for. Where taxes have not been paid will now be recovered."
Jaitley said future transactions would be substantially digital as India moves towards a less-cash society.
"Once they are substantially digital they get caught in tax net," he said. "Therefore the future taxation level would be much higher than what is currently being collected. This would also enable the government at some stage to make taxes more reasonable which will apply to both direct and indirect taxes."
Demonetisation together with other reforms, particularly the GST and the restrictions on cash spending subjected to PAN declaration, will bring down the levels of corruption in society, he said.
"It is going to bring down cash transaction in society and it's going to bring down levels of evasion as far as taxation is concerned," he said.
Jaitley said it has come to the notice of the government that some unscrupulous people, including some in the banking system and others, have been trying to subvert the system once again and have accumulated large amounts of cash unlawfully.
"Obviously there is a breach of law in this and this is a step which hurts the economy. And therefore all agencies have an eye on this. They will investigate this matter and all those who are indulging in this malpractices will have to pay a very heavy price for what they are doing," he added.
Finance Minister Arun Jaitley on Tuesday hinted at lower direct and indirect tax rates in the future as demonetisation results in higher tax revenues from unaccounted wealth coming into system.
He also warned of a "very heavy price" that unscrupulous elements will have to pay for amassing large amounts of cash unlawfully, saying agencies are keeping a close eye on cash accumulations.
The November 8 announcement by government to demonetise high value notes has in one stroke junked 86 per cent of the currency in circulation and holders of the discontinued notes can deposit them in banks before the end of the year and withdraw money in new currency.
The money being deposited has to be accounted for and taxes paid - 50 per cent on voluntary disclosures of unaccounted money and 85 per cent for any failures.
"So much money...operating as loose cash in the system has today come into the banking system," he said. "It has to be accounted for. Where taxes have not been paid will now be recovered."
Jaitley said future transactions would be substantially digital as India moves towards a less-cash society.
"Once they are substantially digital they get caught in tax net," he said. "Therefore the future taxation level would be much higher than what is currently being collected. This would also enable the government at some stage to make taxes more reasonable which will apply to both direct and indirect taxes."
Demonetisation together with other reforms, particularly the GST and the restrictions on cash spending subjected to PAN declaration, will bring down the levels of corruption in society, he said.
"It is going to bring down cash transaction in society and it's going to bring down levels of evasion as far as taxation is concerned," he said.
Jaitley said it has come to the notice of the government that some unscrupulous people, including some in the banking system and others, have been trying to subvert the system once again and have accumulated large amounts of cash unlawfully.
"Obviously there is a breach of law in this and this is a step which hurts the economy. And therefore all agencies have an eye on this. They will investigate this matter and all those who are indulging in this malpractices will have to pay a very heavy price for what they are doing," he added.
Sensex sinks 232 pts on downbeat macroeconomic data
-
The Sensex showed its unpredictable side again as it reversed two days of gains and dived about 232 points to close at 26,515 on Monday, pulled down by dismal factory output data and higher oil prices amid mixed Asian indicators.
The nervousness was palpable as investors looked forward to the release of CPI inflation, to be released on Tuesday.
Wholesale inflation is due on Wednesday.
The broader NSE Nifty cut a sorry figure too, which cracked below the 8,200-mark.
Data on Friday showed that industrial output slipped into the negative zone again with a contraction of 1.9 per cent in October, mainly due to a sharp decline in production of capital goods and poor performance of the manufacturing sector.
Sentiment further soured as IT stocks were hit by tough talk from US President-elect Donald Trump on visas while state-owned oil marketing companies declined after crude prices shot up to their highest since mid-2015.
The BSE Sensex stayed in the negative zone throughout the day and touched a low of 26,468.59 before ending lower by 231.94 points, or 0.87 per cent, at 26,515.24. The index had gained 510.31 points in the previous two sessions.
The 50-share NSE Nifty slipped below the 8,200-mark to touch a low of 8,154.45, but settled at 8,170.80, down 90.95 points, or 1.10 per cent.
Globally, oil soared on Monday following a landmark deal by Russia and other non-OPEC producers to join the cartel in capping output in a bid to curb a stubborn global glut that has hammered prices down.
Benchmark Brent for February contracts went up USD 2.41 to USD 56.74 per barrel in Asian trade.
Infosys fell as much as 1 per cent while Wipro shed 0.72 per cent, but TCS inched up 0.58 per cent. Shares of the fuel retailers such as HPCL, BPCL and IOC faced selling pressure and slumped by up to 4.25 per cent.
Other big losers included Bajaj Auto 2.52 per cent, Hero MotoCorp (2.29 per cent), Tata Motors (2.05 per cent), M&M (1.77 per cent) and Maruti Suzuki (1.54 per cent).
Among the BSE sectoral indices, auto fell the most by declining 1.73 per cent followed by banking 1.67 per cent, FMCG 1.20 per cent and oil and gas 1.14 per cent.
Mid-cap and small-cap indices fell 1.11 per cent and 0.73 per cent, respectively, as investors trimmed their exposure to book profits.
Meanwhile, foreign funds bought shares net worth Rs 200.52 crore last Friday, as per the provisional data.
In rest of Asia, Hong Kong's Hang Seng tumbled 1.44 per cent as investors look ahead to an expected US interest rate hike later this week. China Shanghai Composite Index fell 2.47 per cent while Japan's Nikkei surged 0.84 per cent, helped by weakness in the yen against the American currency.
European markets, however, were in a better shape.
London's FTSE rose 0.22 per cent, Paris gained 0.17 per cent while Frankfurt's DAX shed 0.17 per cent.
Asian Paints emerged as the top loser among the Sensex constituents by diving 3.33 per cent to Rs 910.25 followed by Axis Bank at 2.56 per cent to Rs 444.60.
The Sensex showed its unpredictable side again as it reversed two days of gains and dived about 232 points to close at 26,515 on Monday, pulled down by dismal factory output data and higher oil prices amid mixed Asian indicators.
The nervousness was palpable as investors looked forward to the release of CPI inflation, to be released on Tuesday.
Wholesale inflation is due on Wednesday.
The broader NSE Nifty cut a sorry figure too, which cracked below the 8,200-mark.
Data on Friday showed that industrial output slipped into the negative zone again with a contraction of 1.9 per cent in October, mainly due to a sharp decline in production of capital goods and poor performance of the manufacturing sector.
Sentiment further soured as IT stocks were hit by tough talk from US President-elect Donald Trump on visas while state-owned oil marketing companies declined after crude prices shot up to their highest since mid-2015.
The BSE Sensex stayed in the negative zone throughout the day and touched a low of 26,468.59 before ending lower by 231.94 points, or 0.87 per cent, at 26,515.24. The index had gained 510.31 points in the previous two sessions.
The 50-share NSE Nifty slipped below the 8,200-mark to touch a low of 8,154.45, but settled at 8,170.80, down 90.95 points, or 1.10 per cent.
Globally, oil soared on Monday following a landmark deal by Russia and other non-OPEC producers to join the cartel in capping output in a bid to curb a stubborn global glut that has hammered prices down.
Benchmark Brent for February contracts went up USD 2.41 to USD 56.74 per barrel in Asian trade.
Infosys fell as much as 1 per cent while Wipro shed 0.72 per cent, but TCS inched up 0.58 per cent. Shares of the fuel retailers such as HPCL, BPCL and IOC faced selling pressure and slumped by up to 4.25 per cent.
Other big losers included Bajaj Auto 2.52 per cent, Hero MotoCorp (2.29 per cent), Tata Motors (2.05 per cent), M&M (1.77 per cent) and Maruti Suzuki (1.54 per cent).
Among the BSE sectoral indices, auto fell the most by declining 1.73 per cent followed by banking 1.67 per cent, FMCG 1.20 per cent and oil and gas 1.14 per cent.
Mid-cap and small-cap indices fell 1.11 per cent and 0.73 per cent, respectively, as investors trimmed their exposure to book profits.
Meanwhile, foreign funds bought shares net worth Rs 200.52 crore last Friday, as per the provisional data.
In rest of Asia, Hong Kong's Hang Seng tumbled 1.44 per cent as investors look ahead to an expected US interest rate hike later this week. China Shanghai Composite Index fell 2.47 per cent while Japan's Nikkei surged 0.84 per cent, helped by weakness in the yen against the American currency.
European markets, however, were in a better shape.
London's FTSE rose 0.22 per cent, Paris gained 0.17 per cent while Frankfurt's DAX shed 0.17 per cent.
Asian Paints emerged as the top loser among the Sensex constituents by diving 3.33 per cent to Rs 910.25 followed by Axis Bank at 2.56 per cent to Rs 444.60.
Ratan Tata saving British Steel at the cost of Tata Steel India: Nusli Wadia
-
In a letter to Tata Steel's shareholders, Tata Sons' Independent Director Nusli Wadia said that it is ironic that the founder Jamshedji Tata started Tata Steel to fight British Steel and now Ratan Tata is trying to save British Steel (Corus/Tata Steel Europe) by deploying huge resources at the cost of Tata Steel India.
"The very purpose and foundation of Tata Steel by the great Indian visionary and nationalist Jamshedji Tata in 1907 was to fulfil the dream of 'Make in India' when all the steel consumed in India was being imported from the UK," Wadia said in the 15-page letter.
"It was his pride and belief in India that is today being espoused by our respected and honourable Prime Minister Shri NarendraModi through his vision 'Make in India'. Tragically in contrast we now read in the British and Indian press 'Ratan Tata hailed as saviour of UK Steel Industry'," Wadia added.
Hitting back at Tata Sons for seeking his removal as independent director, Wadia said, "the alleged reasons seeking my removal do not even remotely relate to my performance or my conduct as an Independent Director of Tata Steel for 37 years."
In a letter to Tata Steel's shareholders, Tata Sons' Independent Director Nusli Wadia said that it is ironic that the founder Jamshedji Tata started Tata Steel to fight British Steel and now Ratan Tata is trying to save British Steel (Corus/Tata Steel Europe) by deploying huge resources at the cost of Tata Steel India.
"The very purpose and foundation of Tata Steel by the great Indian visionary and nationalist Jamshedji Tata in 1907 was to fulfil the dream of 'Make in India' when all the steel consumed in India was being imported from the UK," Wadia said in the 15-page letter.
"It was his pride and belief in India that is today being espoused by our respected and honourable Prime Minister Shri NarendraModi through his vision 'Make in India'. Tragically in contrast we now read in the British and Indian press 'Ratan Tata hailed as saviour of UK Steel Industry'," Wadia added.
Hitting back at Tata Sons for seeking his removal as independent director, Wadia said, "the alleged reasons seeking my removal do not even remotely relate to my performance or my conduct as an Independent Director of Tata Steel for 37 years."
General Awareness
External Affairs Minister Sushma Swaraj Named in Top 100 Global Thinkers 2016 list
-
External Affairs Minister Sushma Swaraj has been named among the top 100 global thinker by the US based Foreign Policy magazine.
- Swaraj was named in the Global Thinkers of 2016 List under the ‘Decision-makers’ category along with the Democratic nominee for US President Hillary Clinton, UN Secretary-General Ban Ki-Moon, German Chancellor Angela Merkel and US Attorney General Loretta Lynch among others.
- She was favored for her Twitter diplomacy and evacuating Indians from Yemen as well as helping to replace lost passports.
- Apart from Swaraj, the magazine also listed the co-founders of Sampark Foundation, Anupama Nayar and Vineet Nayar, under the ‘the Moguls’ category for transforming learning techniques in Schools.
- The Nayars were named along with other thinkers who “put their money where their morality is” including Melinda Gates, Crown Princess of Norway Mette Marit and Kate Roberts, Priscilla Chan and Mark Zuckerberg among others.
- Through their Sampark Foundation, the former HCL Technologies executive and his wife are on a mission to re-structure rural India’s primary education system with low-tech teaching tools.
- They have created ‘smart class kits’ which include various economical innovations, such as a plastic audio device that contains English words and lasts 15 days without the need to charge. The cost of supplying kits is just $1 per year per child.
- The Nayars want to reach 50,000 schools, including Chhattisgarh and Jammu and Kashmir.
Other Indians who were listed in the Global Thinkers Of 2016 List includes:
Nitesh Kadyan, Nikhil Kaushik, and Anirudh Sharma of Graviky Labs, which is an Indian firm that uses polluted air to create art supplies were named under the Stewards Category.
- Immunologist Gursaran Prasad Talwar was named under the Healers category for the vaccine developed
by him that could decrease leprosy rates by 65 per cent over three years.
- Total 9 categories were listed in the Global Thinkers of 2016 List.
- The decision-makers, the challengers, the innovators, the artists, the advocates, the chroniclers, the moguls, the stewards, the healers.
Global Thinkers of List
Foreign Policy magazine recognizes the world’s eminent thought leaders and public intellectuals in its annual issue, “100 Leading Global Thinkers”.
- Honorees include a wide range of leaders, advocates, innovators, artists, government officials, and visionaries from around the world.
- The editors of Foreign Policy select the 100 Global Thinkers based on their standout contributions over the past year and their ability to translate ideas into action that change and shape the world.
- Swaraj was named in the Global Thinkers of 2016 List under the ‘Decision-makers’ category along with the Democratic nominee for US President Hillary Clinton, UN Secretary-General Ban Ki-Moon, German Chancellor Angela Merkel and US Attorney General Loretta Lynch among others.
- She was favored for her Twitter diplomacy and evacuating Indians from Yemen as well as helping to replace lost passports.
- Apart from Swaraj, the magazine also listed the co-founders of Sampark Foundation, Anupama Nayar and Vineet Nayar, under the ‘the Moguls’ category for transforming learning techniques in Schools.
- The Nayars were named along with other thinkers who “put their money where their morality is” including Melinda Gates, Crown Princess of Norway Mette Marit and Kate Roberts, Priscilla Chan and Mark Zuckerberg among others.
- Through their Sampark Foundation, the former HCL Technologies executive and his wife are on a mission to re-structure rural India’s primary education system with low-tech teaching tools.
- They have created ‘smart class kits’ which include various economical innovations, such as a plastic audio device that contains English words and lasts 15 days without the need to charge. The cost of supplying kits is just $1 per year per child.
- The Nayars want to reach 50,000 schools, including Chhattisgarh and Jammu and Kashmir.
- Immunologist Gursaran Prasad Talwar was named under the Healers category for the vaccine developed
by him that could decrease leprosy rates by 65 per cent over three years. - Total 9 categories were listed in the Global Thinkers of 2016 List.
- The decision-makers, the challengers, the innovators, the artists, the advocates, the chroniclers, the moguls, the stewards, the healers.
- Honorees include a wide range of leaders, advocates, innovators, artists, government officials, and visionaries from around the world.
- The editors of Foreign Policy select the 100 Global Thinkers based on their standout contributions over the past year and their ability to translate ideas into action that change and shape the world.
External Affairs Minister Sushma Swaraj has been named among the top 100 global thinker by the US based Foreign Policy magazine.
Other Indians who were listed in the Global Thinkers Of 2016 List includes:
Nitesh Kadyan, Nikhil Kaushik, and Anirudh Sharma of Graviky Labs, which is an Indian firm that uses polluted air to create art supplies were named under the Stewards Category.
Global Thinkers of List
Foreign Policy magazine recognizes the world’s eminent thought leaders and public intellectuals in its annual issue, “100 Leading Global Thinkers”.
No comments:
Post a Comment