General Affairs
Demonetisation may slow down economy: President Pranab Mukherjee
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President Pranab Mukherjee today, while acknowledging that Prime Minister Narendra Modi's demonetisation drive immobilised black money and fought corruption, had a word of caution too: it may lead to temporary slowdown of the Indian economy.
"Demonetisation, while immobilising black money and fighting corruption, may lead to temporary slowdown of the economy," Mukherjee, who had called note ban a "bold step" two months ago, said today.
The President said we all will have to be "extra careful" to alleviate the sufferings of the poor following the banning of Rs 500 and Rs 1000 notes in a shock announcement by Modi on November 8.
"We need to be extra careful to alleviate the sufferings of the poor that might become unavoidable for the expected progress in the long term," he said.
The President's words of caution came when he was addressing the Governors and Lt Governors through video-conferencing from Rashtrapati Bhavan.
Mukherjee said that while he appreciates the thrust on transition from entitlement approach to an entrepreneurial one for poverty alleviation, he is not too sure that the "poor can wait that long".
"They need to get succour here and now so that they can also participate actively in the national march toward a future devoid of hunger, unemployment and exploitation," the President said.
TEN DAYS AGO, HE WAS OPTIMISTIC
Barely ten days ago, while addressing an event in Hyderabad, President Mukherjee was a lot more optimistic about the Indian economy.
"India is on the cusp of a leap towards a higher economic growth trajectory. A decade after the 2008 global economic crisis, major economies of the world are still limping. But, the Indian economy is growing fast", he had said on December 23 while addressing the Centenary Year Celebrations of the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry in Hyderabad.
Interestingly, the word demonetisation - arguably the word of 2016 along with surgical strikes - found no mention in the President's Hyderabad address.
On November 9, a day after Modi's televised announcement on note ban, Mukherjee had welcomed the move "which will help unearth unaccounted money and counterfeit currency".
President Pranab Mukherjee today, while acknowledging that Prime Minister Narendra Modi's demonetisation drive immobilised black money and fought corruption, had a word of caution too: it may lead to temporary slowdown of the Indian economy.
"Demonetisation, while immobilising black money and fighting corruption, may lead to temporary slowdown of the economy," Mukherjee, who had called note ban a "bold step" two months ago, said today.
The President said we all will have to be "extra careful" to alleviate the sufferings of the poor following the banning of Rs 500 and Rs 1000 notes in a shock announcement by Modi on November 8.
"We need to be extra careful to alleviate the sufferings of the poor that might become unavoidable for the expected progress in the long term," he said.
The President's words of caution came when he was addressing the Governors and Lt Governors through video-conferencing from Rashtrapati Bhavan.
Mukherjee said that while he appreciates the thrust on transition from entitlement approach to an entrepreneurial one for poverty alleviation, he is not too sure that the "poor can wait that long".
"They need to get succour here and now so that they can also participate actively in the national march toward a future devoid of hunger, unemployment and exploitation," the President said.
TEN DAYS AGO, HE WAS OPTIMISTIC
Barely ten days ago, while addressing an event in Hyderabad, President Mukherjee was a lot more optimistic about the Indian economy.
"India is on the cusp of a leap towards a higher economic growth trajectory. A decade after the 2008 global economic crisis, major economies of the world are still limping. But, the Indian economy is growing fast", he had said on December 23 while addressing the Centenary Year Celebrations of the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry in Hyderabad.
Interestingly, the word demonetisation - arguably the word of 2016 along with surgical strikes - found no mention in the President's Hyderabad address.
On November 9, a day after Modi's televised announcement on note ban, Mukherjee had welcomed the move "which will help unearth unaccounted money and counterfeit currency".
Army chief General Bipin Rawat embarks on 3-day visit to Jammu and Kashmir
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Army Chief General Bipin Rawat is on a three-day visit to Jammu and Kashmir from today.
A Defence spokesman said Rawat would be visiting Udhampur, Srinagar, Nagrota and Siachen during his tour. He will also visit formations at Kupwara, Anantnag, Akhnoor and Rajouri, where he is going to be briefed about the prevailing security situation by officers there.
General Rawat lauded the role of the Northern Command in restoring peace and normalcy during the recent unrest. He also commended the soldiers for retaliating strongly against the unprovoked ceasefire violations by Pakistan. Rawat said, "Every soldier of our Army plays an important role in security of the nation because it is the contribution of every soldier that makes the Army efficient and strong."
The visit assumes importance as the Northern Command is the first place General Rawat is visiting after taking over as the Army chief. He emphasised that we need to evolve a dynamic strategy to handle the proxy war and defeat the enemy's nefarious designs.
Army Chief General Bipin Rawat is on a three-day visit to Jammu and Kashmir from today.
A Defence spokesman said Rawat would be visiting Udhampur, Srinagar, Nagrota and Siachen during his tour. He will also visit formations at Kupwara, Anantnag, Akhnoor and Rajouri, where he is going to be briefed about the prevailing security situation by officers there.
General Rawat lauded the role of the Northern Command in restoring peace and normalcy during the recent unrest. He also commended the soldiers for retaliating strongly against the unprovoked ceasefire violations by Pakistan. Rawat said, "Every soldier of our Army plays an important role in security of the nation because it is the contribution of every soldier that makes the Army efficient and strong."
The visit assumes importance as the Northern Command is the first place General Rawat is visiting after taking over as the Army chief. He emphasised that we need to evolve a dynamic strategy to handle the proxy war and defeat the enemy's nefarious designs.
ECI's election announcement gets wide coverage in social media
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Election Commission of India has just declared the election schedules for five states. To ensure the widest possible reach PIB and Ministry of Information and Broadcast opted for the social media platforms to disseminate the information, beside traditional channels.
The press conference was live streamed via Ministry of Information and Broadcasting's YouTube channel and it was tweeted and updated on Facebook as well, in real time. The Facebook broadcast had a reach of over 5.25 lakh, over 22 thousand views and the YouTube channel saw a real time viewership of 1700. Related Facebook posts reached over 29,700 people, 167 Likes and 46 Shares, and PIB's tweets resulted in 6.5 lakh views, over 4,000 retweets and 951 favourites.
Additionally the ECI's press conference was live streamed on two Facebook pages. They are 'Facebook India and Government' and 'Politics and Non Profits'. These pages collectively received very good response with more than 1 Lakh video views and outreach of over 13 Lakh people. Facebook Live Stream received over 6,500 likes and over 700 shares and counting. (Figures as on 7:00 pm, January 4, 2017)
On Twitter #ElectionCommission, #AssemblyElection, Manipur and Goa, 5 States, Phase2, Uttarakhand and Model Code of Conduct - were amongs the top trending hash tags throughout the day. #ElectionCommission and #AssemblyElection had potential outreach of about 21.2 crores and 20.1 crores respectively.
Election Commission of India has just declared the election schedules for five states. To ensure the widest possible reach PIB and Ministry of Information and Broadcast opted for the social media platforms to disseminate the information, beside traditional channels.
The press conference was live streamed via Ministry of Information and Broadcasting's YouTube channel and it was tweeted and updated on Facebook as well, in real time. The Facebook broadcast had a reach of over 5.25 lakh, over 22 thousand views and the YouTube channel saw a real time viewership of 1700. Related Facebook posts reached over 29,700 people, 167 Likes and 46 Shares, and PIB's tweets resulted in 6.5 lakh views, over 4,000 retweets and 951 favourites.
Additionally the ECI's press conference was live streamed on two Facebook pages. They are 'Facebook India and Government' and 'Politics and Non Profits'. These pages collectively received very good response with more than 1 Lakh video views and outreach of over 13 Lakh people. Facebook Live Stream received over 6,500 likes and over 700 shares and counting. (Figures as on 7:00 pm, January 4, 2017)
On Twitter #ElectionCommission, #AssemblyElection, Manipur and Goa, 5 States, Phase2, Uttarakhand and Model Code of Conduct - were amongs the top trending hash tags throughout the day. #ElectionCommission and #AssemblyElection had potential outreach of about 21.2 crores and 20.1 crores respectively.
UP polls: Positive response to demonetisation could hamper SP, BSP's prospects in Braj
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With the declaration of assembly elections in five states including Uttar Pradesh, the political activities in the Braj region have begun showing a sharp spike as the entire region, except Mainpuri, elects their MLAs in the first stage of polling on February 11.
If polling in this region goes according to the Election Commission's guidelines without major disruption, it will be a good sign for the remaining six stages of election in the remaining regions of Uttar Pradesh and rest of the states.
However, currently the political parties are highly unsure of the mood of the voters in this region as the vote equations in this region are highly convoluted. Only Bharatiya Janata Party (BJP) appears confident at this point, partly owing to the fact that there has been no significant opposition of demonetisation in the region and the general sentiment among people towards PM Modi's radical step has been positive.
POSSIBLE VOTE POLARISATION
Senior citizen Uma Shanker Sharma told India Today that there has been some major issues in this region that could form the basis of vote polarisation and will definitely get exploited by the political party. The Jawaharbagh firing and arson issue will be used against the ruling Samajwadi Party by both the BJP and the Bahujan Samaj Party (BSP).
The internal strife in the Yadav clan will also adversely affect the vote-gathering potential of the Samajwadi Party (SP) candidates and since SP has been the dominant force in this region, losing seats here could mean a big blow to the party.
From Firozabad of Agra division, SP General Secretary Ram Gopal Yadav's son Akshay Yadav is a member of parliament. From Mainpuri, Lalu Yadav's son-in-law Tejvir Singh Yadav is MP. Both of these candidates won their respective seats at a time when the Modi wave was sweeping through the country.
GENESIS OF BJP'S IDEOLOGY
But the most important factor that could influence the elections would be BJP's focus on this region which is also known for being the birthplace of BJP's ideological guru Deen Dayal Upadhyay. The party has also held two major rallies in the region in Agra and Farah (Mathura) with PM Modi and Amit Shah addressing them. RSS has also been significantly active in this region and that could become a big factor during the elections.
The BJP is yet to declare the names of its candidates for the elections and this could be the biggest weak point in the party's otherwise solid looking facade. A senior party leader said that the party is waiting for the month of 'Paush' in the Hindu calendar to end to declare the names of its candidates as this month is considered inauspicious for any new work. As the month of Paush ends on January 12, the declaration of names could take place during that time.
GROUND FOR SOCIAL ENGINEERING
For the BSP too, the region holds importance as the party had won 6 out of 9 seats in the Agra district in 2012, mostly because of its experiments in social engineering. Agra is often called the Dalit capital due to its large population of Dalits and Mayawati begins her electoral campaign from Agra. But this time, the social engineering factor of Mayawati has weakened a lot and that in return has made the BSP totally dependent on Dalit and Muslim votes, which may not bode well for it during the elections.
The Rashtriya Lok Dal has always followed a Jat-centric agenda and the Braj region, especially the Mathura-Agra-Hathras belt comprises of a large population of Jat voters so the party may be looking at tapping this vote potential like the previous elections in order to maintain a presence in the UP assembly.
Party president Ajit Singh's son Jayant Chowdhary has made Mathura his electoral headquarters, while his father is focusing on the second most prominent Jat belt of the region in Meerut-Saharapur-Bagpat area.
CONGRESS - THE WEAKEST CONTENDER
Probably the weakest contender of all is again the Congress, even though the UP Congress President Raj Babbar has been the member of Parliament from both Agra and Firozabad for three terms and was also born in Tundla (Firozabad).
Congress vice-president Rahul Gandhi recently held a road-show and khat sabha in this region to build some support for the Congress.
It remains to be seen in view of these equations, which political party establishes its dominance in this region as the results from the Braj could very well reflect all over the state.
With the declaration of assembly elections in five states including Uttar Pradesh, the political activities in the Braj region have begun showing a sharp spike as the entire region, except Mainpuri, elects their MLAs in the first stage of polling on February 11.
If polling in this region goes according to the Election Commission's guidelines without major disruption, it will be a good sign for the remaining six stages of election in the remaining regions of Uttar Pradesh and rest of the states.
However, currently the political parties are highly unsure of the mood of the voters in this region as the vote equations in this region are highly convoluted. Only Bharatiya Janata Party (BJP) appears confident at this point, partly owing to the fact that there has been no significant opposition of demonetisation in the region and the general sentiment among people towards PM Modi's radical step has been positive.
POSSIBLE VOTE POLARISATION
Senior citizen Uma Shanker Sharma told India Today that there has been some major issues in this region that could form the basis of vote polarisation and will definitely get exploited by the political party. The Jawaharbagh firing and arson issue will be used against the ruling Samajwadi Party by both the BJP and the Bahujan Samaj Party (BSP).
The internal strife in the Yadav clan will also adversely affect the vote-gathering potential of the Samajwadi Party (SP) candidates and since SP has been the dominant force in this region, losing seats here could mean a big blow to the party.
From Firozabad of Agra division, SP General Secretary Ram Gopal Yadav's son Akshay Yadav is a member of parliament. From Mainpuri, Lalu Yadav's son-in-law Tejvir Singh Yadav is MP. Both of these candidates won their respective seats at a time when the Modi wave was sweeping through the country.
GENESIS OF BJP'S IDEOLOGY
But the most important factor that could influence the elections would be BJP's focus on this region which is also known for being the birthplace of BJP's ideological guru Deen Dayal Upadhyay. The party has also held two major rallies in the region in Agra and Farah (Mathura) with PM Modi and Amit Shah addressing them. RSS has also been significantly active in this region and that could become a big factor during the elections.
The BJP is yet to declare the names of its candidates for the elections and this could be the biggest weak point in the party's otherwise solid looking facade. A senior party leader said that the party is waiting for the month of 'Paush' in the Hindu calendar to end to declare the names of its candidates as this month is considered inauspicious for any new work. As the month of Paush ends on January 12, the declaration of names could take place during that time.
GROUND FOR SOCIAL ENGINEERING
For the BSP too, the region holds importance as the party had won 6 out of 9 seats in the Agra district in 2012, mostly because of its experiments in social engineering. Agra is often called the Dalit capital due to its large population of Dalits and Mayawati begins her electoral campaign from Agra. But this time, the social engineering factor of Mayawati has weakened a lot and that in return has made the BSP totally dependent on Dalit and Muslim votes, which may not bode well for it during the elections.
The Rashtriya Lok Dal has always followed a Jat-centric agenda and the Braj region, especially the Mathura-Agra-Hathras belt comprises of a large population of Jat voters so the party may be looking at tapping this vote potential like the previous elections in order to maintain a presence in the UP assembly.
Party president Ajit Singh's son Jayant Chowdhary has made Mathura his electoral headquarters, while his father is focusing on the second most prominent Jat belt of the region in Meerut-Saharapur-Bagpat area.
CONGRESS - THE WEAKEST CONTENDER
Probably the weakest contender of all is again the Congress, even though the UP Congress President Raj Babbar has been the member of Parliament from both Agra and Firozabad for three terms and was also born in Tundla (Firozabad).
Congress vice-president Rahul Gandhi recently held a road-show and khat sabha in this region to build some support for the Congress.
It remains to be seen in view of these equations, which political party establishes its dominance in this region as the results from the Braj could very well reflect all over the state.
PM Modi's big praise for ex-ally Nitish Kumar over Bihar liquor ban
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In what could easily be called the picture of the day, Prime Minister Narendra Modi and Bihar Chief Minister Nitish Kumar were seen talking to each other and even sharing a laugh at the Prakash Parv celebrations at Patna's Gandhi Maidan today.
Nitish apparently initiated the conversation, which Modi responded to. The two were soon seen laughing over something Nitish said. This was their first meeting after Nitish, in a surprise move, backed Modi's demonetisation.
Later, while addressing the meeting, Modi thanked Nitish for hosting the 350th birth anniversary of Sikh Guru Gobind Singh celebrations. "I thank Chief Minister Nitish Kumar, the Bihar government and the people of the state for organising this special event. I was told Nitish ji personally managed it," Modi said.
Modi mentioned Nitish Kumar not less than a dozen times during his address to praise him for holding the Prakash Utsav and his decision of total prohibition.
"Nitish Kumar has worked hard, day and night monitoring and personally inspecting preparations for the Prakash Utsav for months. He deserves credit for this mega event," the Prime Minister said.
Modi termed Nitish Kumar's decision of prohibition a "brave step" for social change. "Taking an initiative for social change is very difficult, but Nitish Kumar has initiated it by enforcing prohibition. All people including political parties should back him for it."
Nitish returned the compliment by reminding the crowd of the good work done by Modi as Gujarat Chief Minister. "Our Prime Minister was a Chief Minister for 12 years and he implemented prohibition of liquor very effectively in Gujarat," Nitish said in defence of his controversial move to ban liquor in Bihar.
WHY THE BONHOMIE MATTERS
It should be remembered that Nitish had broken off his Janata Dal (United)'s 17-year association with the BJP after Modi was declared the BJP's prime ministerial candidate in the run-up to the 2014 Lok Sabha election.
In the Bihar election in 2015, Nitish's party had allied with Lalu Prasad's Rashtriya Janata Dal to form a Grand Alliance that dealt a major blow to the BJP in the state.
However, Nitish surprised many recently by openly supporting Modi's demonetisation - a move that is being bitterly challenged by some even within the Bihar Chief Minister's party.
Nitish's support to the banning of Rs 500 and Rs 1000 notes is also being seen as his attempt to keep his ambitious ally, Lalu Prasad, in check.
In what could easily be called the picture of the day, Prime Minister Narendra Modi and Bihar Chief Minister Nitish Kumar were seen talking to each other and even sharing a laugh at the Prakash Parv celebrations at Patna's Gandhi Maidan today.
Nitish apparently initiated the conversation, which Modi responded to. The two were soon seen laughing over something Nitish said. This was their first meeting after Nitish, in a surprise move, backed Modi's demonetisation.
Later, while addressing the meeting, Modi thanked Nitish for hosting the 350th birth anniversary of Sikh Guru Gobind Singh celebrations. "I thank Chief Minister Nitish Kumar, the Bihar government and the people of the state for organising this special event. I was told Nitish ji personally managed it," Modi said.
Modi mentioned Nitish Kumar not less than a dozen times during his address to praise him for holding the Prakash Utsav and his decision of total prohibition.
"Nitish Kumar has worked hard, day and night monitoring and personally inspecting preparations for the Prakash Utsav for months. He deserves credit for this mega event," the Prime Minister said.
Modi termed Nitish Kumar's decision of prohibition a "brave step" for social change. "Taking an initiative for social change is very difficult, but Nitish Kumar has initiated it by enforcing prohibition. All people including political parties should back him for it."
Nitish returned the compliment by reminding the crowd of the good work done by Modi as Gujarat Chief Minister. "Our Prime Minister was a Chief Minister for 12 years and he implemented prohibition of liquor very effectively in Gujarat," Nitish said in defence of his controversial move to ban liquor in Bihar.
WHY THE BONHOMIE MATTERS
It should be remembered that Nitish had broken off his Janata Dal (United)'s 17-year association with the BJP after Modi was declared the BJP's prime ministerial candidate in the run-up to the 2014 Lok Sabha election.
In the Bihar election in 2015, Nitish's party had allied with Lalu Prasad's Rashtriya Janata Dal to form a Grand Alliance that dealt a major blow to the BJP in the state.
However, Nitish surprised many recently by openly supporting Modi's demonetisation - a move that is being bitterly challenged by some even within the Bihar Chief Minister's party.
Nitish's support to the banning of Rs 500 and Rs 1000 notes is also being seen as his attempt to keep his ambitious ally, Lalu Prasad, in check.
Business Affairs
Don't speculate, it could also be counting errors: RBI on 97% deposits of old notes
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The Reserve Bank of India today issued a statement over several media reports claiming that the banks received 97 per cent banned notes since the note ban announcement.
The Central Bank said,"There had been various estimates on Specified Bank Notes (SBNs) tendered in certain sections. We would like to clarify that the periodical SBN figures released by us were based on aggregation of accounting entries done at the large number of Currency Chests all over the country".
"Now that the Scheme has come to an end on December 30, 2016, these figures would need to be reconciled with the physical cash balances to eliminate accounting errors/ possible double counts etc. RBI has already initiated this process and till this is completed any estimate may not indicate the actual numbers of the SBNs that have been returned", the RBI statement clarified.
On Wednesday, a PTI report said that RBI had received deposits close to Rs 15 lakh crore of the estimated Rs 15.4 lakh crore worth of junked Rs 500 and Rs 1000 currency notes that were in circulation from the 50-day demonetisation exercise that ended on December 30.
On being asked about Rs 15 lakh crore had been deposited back to the banks or not, finance minister Arun Jaitley said that he was not aware of the numbers.
However, both the government and the RBI are yet to come out with the official statement on the exact amount of old notes being deposited so far.
On the last day of demonetisation, the RBI had asked all banks to report details of deposits of old Rs 500 /1,000 notes after the close of banking hours.
Former Reserve Bank governor D Subbarao today termed demonetisation as "creative destruction and the most disruptive policy innovation since 1991 reforms" that has helped destroy blackmoney.
"On November 8, the Prime Minister (Narendra Modi) and the Reserve Bank have demonetised 86 per cent of currency in circulation overnight, which is what is arguably the most disruptive policy innovation in India since the 1991 reforms," he said.
The Reserve Bank of India today issued a statement over several media reports claiming that the banks received 97 per cent banned notes since the note ban announcement.
The Central Bank said,"There had been various estimates on Specified Bank Notes (SBNs) tendered in certain sections. We would like to clarify that the periodical SBN figures released by us were based on aggregation of accounting entries done at the large number of Currency Chests all over the country".
"Now that the Scheme has come to an end on December 30, 2016, these figures would need to be reconciled with the physical cash balances to eliminate accounting errors/ possible double counts etc. RBI has already initiated this process and till this is completed any estimate may not indicate the actual numbers of the SBNs that have been returned", the RBI statement clarified.
On Wednesday, a PTI report said that RBI had received deposits close to Rs 15 lakh crore of the estimated Rs 15.4 lakh crore worth of junked Rs 500 and Rs 1000 currency notes that were in circulation from the 50-day demonetisation exercise that ended on December 30.
On being asked about Rs 15 lakh crore had been deposited back to the banks or not, finance minister Arun Jaitley said that he was not aware of the numbers.
However, both the government and the RBI are yet to come out with the official statement on the exact amount of old notes being deposited so far.
On the last day of demonetisation, the RBI had asked all banks to report details of deposits of old Rs 500 /1,000 notes after the close of banking hours.
Former Reserve Bank governor D Subbarao today termed demonetisation as "creative destruction and the most disruptive policy innovation since 1991 reforms" that has helped destroy blackmoney.
"On November 8, the Prime Minister (Narendra Modi) and the Reserve Bank have demonetised 86 per cent of currency in circulation overnight, which is what is arguably the most disruptive policy innovation in India since the 1991 reforms," he said.
Gold price hits one-month high, silver too gains Rs 350
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Marching forward for the third straight day, gold prices on Thursday surged by another Rs 180 to a nearly month high of Rs 28,730 per 10 grams, in line with a firming trend overseas amid increased buying by local jewellers.
Silver followed suit and advanced by Rs 350 to Rs 40,600 per kg due to increased offtake by industrial units and coin makers.
Traders said sentiment took a turn for the better after gold advanced to its highest level in four weeks in global markets as the US dollar retreated from a 14-year peak hit earlier this week, which kept the precious metals higher.
Globally, gold rose 0.9 per cent to $1,173.51 per ounce, the highest level in almost a month in Singapore.
In addition, persistent buying by local jewellers at the domestic spot market provided more traction, they said.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity climbed by Rs 180 each to Rs 28,730 and Rs 28,580 per ten grams, respectively, a level last seen on December 8 when it closed at Rs 28,710. The precious metal has gained Rs 250 in the last two days.
Sovereign went up by Rs 200 at Rs 24,200 per piece of eight grams.
Following gold, silver ready hardened by Rs 350 to Rs 40,600 per kg and weekly-based delivery by Rs 360 at Rs 40,580 per kg.
Silver coins, however, held steady at Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.
Marching forward for the third straight day, gold prices on Thursday surged by another Rs 180 to a nearly month high of Rs 28,730 per 10 grams, in line with a firming trend overseas amid increased buying by local jewellers.
Silver followed suit and advanced by Rs 350 to Rs 40,600 per kg due to increased offtake by industrial units and coin makers.
Traders said sentiment took a turn for the better after gold advanced to its highest level in four weeks in global markets as the US dollar retreated from a 14-year peak hit earlier this week, which kept the precious metals higher.
Globally, gold rose 0.9 per cent to $1,173.51 per ounce, the highest level in almost a month in Singapore.
In addition, persistent buying by local jewellers at the domestic spot market provided more traction, they said.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity climbed by Rs 180 each to Rs 28,730 and Rs 28,580 per ten grams, respectively, a level last seen on December 8 when it closed at Rs 28,710. The precious metal has gained Rs 250 in the last two days.
Sovereign went up by Rs 200 at Rs 24,200 per piece of eight grams.
Following gold, silver ready hardened by Rs 350 to Rs 40,600 per kg and weekly-based delivery by Rs 360 at Rs 40,580 per kg.
Silver coins, however, held steady at Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.
Note ban most disruptive policy innovation since 1991: Former RBI Guv
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Former Reserve Bank governor D Subbarao today termed demonetisation as "creative destruction and the most disruptive policy innovation since 1991 reforms" that has helped destroy blackmoney.
"On November 8, the Prime Minister (Narendra Modi) and the Reserve Bank have demonetised 86 per cent of currency in circulation overnight, which is what is arguably the most disruptive policy innovation in India since the 1991 reforms," he said.
"Demonetisation, in that sense, is creative destruction.
But it is a very special type of creative destruction. Because what it has destroyed is a destructive creation -- blackmoney.
So, you can understand that demonetisation is creative destruction of a destructive creation," Subbarao said.
He was addressing an international conference organised by the Institute for Development and Research in Banking Technologies (IDRBT) here.
He further said demonetisation is "arguably" leading to a flurry of innovations in Indian financial sector by way of digitisation of payments.
"There are two perspectives. Extension of a global trend of financial technology which is upending the finance industry and discontinuous change in a low-income country from cash incentive economy to a less-cash economy. Either way, we will have disruptive innovations in India's financial sector," he explained.
Subbarao said that though cost and benefit of this demonetisation exercise is a very contentious debate, the subject of policy innovation is not contentious.
According to him, the country witnesses a lot of disruptive innovations in finance in payment system.
The model of traditional banking has access to low-cost deposits and has an advantage over other financial institutions, including fintech companies, according to the former governor.
Former Reserve Bank governor D Subbarao today termed demonetisation as "creative destruction and the most disruptive policy innovation since 1991 reforms" that has helped destroy blackmoney.
"On November 8, the Prime Minister (Narendra Modi) and the Reserve Bank have demonetised 86 per cent of currency in circulation overnight, which is what is arguably the most disruptive policy innovation in India since the 1991 reforms," he said.
"Demonetisation, in that sense, is creative destruction.
But it is a very special type of creative destruction. Because what it has destroyed is a destructive creation -- blackmoney.
So, you can understand that demonetisation is creative destruction of a destructive creation," Subbarao said.
He was addressing an international conference organised by the Institute for Development and Research in Banking Technologies (IDRBT) here.
He further said demonetisation is "arguably" leading to a flurry of innovations in Indian financial sector by way of digitisation of payments.
"There are two perspectives. Extension of a global trend of financial technology which is upending the finance industry and discontinuous change in a low-income country from cash incentive economy to a less-cash economy. Either way, we will have disruptive innovations in India's financial sector," he explained.
Subbarao said that though cost and benefit of this demonetisation exercise is a very contentious debate, the subject of policy innovation is not contentious.
According to him, the country witnesses a lot of disruptive innovations in finance in payment system.
The model of traditional banking has access to low-cost deposits and has an advantage over other financial institutions, including fintech companies, according to the former governor.
RBI may disappoint you again, unlikely to cut key rate in Feb, says report
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Reserve Bank is unlikely to cut repo rate in the February review meeting due to the prevailing global uncertainties and it's stance may continue to be accommodative next year as inflation is expected to remain benign, according to a report.
"We expect RBI may not oblige with a rate cut in February as global uncertainties may again play spoilsport, according to Ecowrap, an SBI research report.
It said inflation trajectory is expected to remain significantly benign. The December inflation numbers may witness a reading closer to 3.2-3.3 per cent.
"Though inflation may increase in March, it may still be closer to the lower band of 4-4.5 per cent. Hence, the scope for accommodative monetary cycle will continue even in the financial year 2017-2018," the report said.
It further said during April-October, when the repo rare was slashed by 50 basis points, the growth in incremental credit to housing was around Rs 64,000 crore.
In the demonetisation period (November-December 2016), though there was a negative growth in incremental credit, housing credit still managed an increase of Rs 4,063 crore.
"With rate cuts by banks like SBI now being 90 basis points at one go, clearly the evidence is strong for a credit growth rebound at least in the housing sector," the report said.
Talking about demonetisation, the report said as on December-end only 44 per cent of the banned currency has been replaced as against the earlier estimate of 53 per cent.
One possible reason for this could be that RBI is also printing notes of smaller denominations apart from Rs 500 bills and hence the total value getting replaced is lower than projections, though the number of pieces may not, it said.
"If we assume that the RBI continues to print as it is doing as of now, then by January-end, only about 67 per cent of the currency should get replaced (vis- -vis earlier estimate at 75 per cent)."
By February, at this rate, the RBI could thus print as much as 89 per cent of the total currency, it said.
It, however, said if he the apex bank decides to shift its printing more towards smaller denomination, this number could be close to 80 per cent.
The report said things will be closer to normal by February-end as opposed to predictions of the currency swap exercise-linked crisis lasting longer.
"If this is the case, the possibility of GDP bounce back faster than anticipated may not be ruled out."
In any case, a lower growth this year will give the government significant advantage next year in terms of a lower base, the report added.
Reserve Bank is unlikely to cut repo rate in the February review meeting due to the prevailing global uncertainties and it's stance may continue to be accommodative next year as inflation is expected to remain benign, according to a report.
"We expect RBI may not oblige with a rate cut in February as global uncertainties may again play spoilsport, according to Ecowrap, an SBI research report.
It said inflation trajectory is expected to remain significantly benign. The December inflation numbers may witness a reading closer to 3.2-3.3 per cent.
"Though inflation may increase in March, it may still be closer to the lower band of 4-4.5 per cent. Hence, the scope for accommodative monetary cycle will continue even in the financial year 2017-2018," the report said.
It further said during April-October, when the repo rare was slashed by 50 basis points, the growth in incremental credit to housing was around Rs 64,000 crore.
In the demonetisation period (November-December 2016), though there was a negative growth in incremental credit, housing credit still managed an increase of Rs 4,063 crore.
"With rate cuts by banks like SBI now being 90 basis points at one go, clearly the evidence is strong for a credit growth rebound at least in the housing sector," the report said.
Talking about demonetisation, the report said as on December-end only 44 per cent of the banned currency has been replaced as against the earlier estimate of 53 per cent.
One possible reason for this could be that RBI is also printing notes of smaller denominations apart from Rs 500 bills and hence the total value getting replaced is lower than projections, though the number of pieces may not, it said.
"If we assume that the RBI continues to print as it is doing as of now, then by January-end, only about 67 per cent of the currency should get replaced (vis- -vis earlier estimate at 75 per cent)."
By February, at this rate, the RBI could thus print as much as 89 per cent of the total currency, it said.
It, however, said if he the apex bank decides to shift its printing more towards smaller denomination, this number could be close to 80 per cent.
The report said things will be closer to normal by February-end as opposed to predictions of the currency swap exercise-linked crisis lasting longer.
"If this is the case, the possibility of GDP bounce back faster than anticipated may not be ruled out."
In any case, a lower growth this year will give the government significant advantage next year in terms of a lower base, the report added.
Sensex rises 245 points to near 2-month high, Nifty tops 8200-mark
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The Sensex rebounded strongly to end near a two-month high of 26,878 by zooming over 245 points and the NSE Nifty rescaled the 8,200-mark after the US Fed minutes hinted at the uncertainty over pace of rate hike.
A higher US interest rate means flight of capital from emerging markets in quest of better returns. Sentiment took on shine after value-buying in blue-chips amid a mixed trend in global markets boosted by overnight gains in the US.
The US shares rose after minutes of Federal Reserve's December meeting signalled a less aggressive stance on policy tightening, traders said. Retail investors too went ahead with buying as cash crunch following demonetisation started to lose its bite, they added. The Sensex stayed in the positive space throughout and closed at near two month high at 26,878.24, up 245.11 points, or 0.92 per cent.
This is its highest closing since November 10 at 27,517.68. Intra-day, it shuttled between 26,917.21 and 26,738.42. It had lost 10 points in the previous session. The 50-share NSE Nifty wrested control of the crucial 8,200 level and ended at 8,273.80, a gain of 83.30 points, or 1.02 per cent, after moving between 8,282.65 and 8,223.70. Today's close is the highest since 8,296.30 on November 11.
The rupee showed some muscle rising 28 paise intra-day against the dollar at 67.77, which had a positive influence. Buying activity was so strong that all the sectoral indices except IT and technology ended in the green, rising by up to 3 per cent. The top gainers on the 30-share Sensex were Adani Ports 4.88 per cent, Tata Steel 3.47 per cent, Tata Motors 3.18 per cent, ONGC 2.73 per cent, Power Grid 2.50 per cent, ICICI Bank 2.41 per cent and Maruti Suzuki 2.28 per cent.
However, TCS, HDFC Bank and Infosys ended in the red with a fall of up to 1.85 per cent. Broader markets were in a bullish form, with BSE mid-cap rising 1.32 per cent and small-cap 0.98 per cent. Hong Kong's Hang Seng firmed up 1.46 per cent and Shanghai composite index gained 0.21 per cent while Japan's Nikkei slipped 0.37 per cent.
Europe too was trading mixed, with London FTSE up 0.15 per cent, Paris down 0.20 per cent and Frankfurt lower 0.10 per cent. Meanwhile, foreign funds sold shares worth Rs 800.71 crore on Wednesday, as per provisional data.
The Sensex rebounded strongly to end near a two-month high of 26,878 by zooming over 245 points and the NSE Nifty rescaled the 8,200-mark after the US Fed minutes hinted at the uncertainty over pace of rate hike.
A higher US interest rate means flight of capital from emerging markets in quest of better returns. Sentiment took on shine after value-buying in blue-chips amid a mixed trend in global markets boosted by overnight gains in the US.
The US shares rose after minutes of Federal Reserve's December meeting signalled a less aggressive stance on policy tightening, traders said. Retail investors too went ahead with buying as cash crunch following demonetisation started to lose its bite, they added. The Sensex stayed in the positive space throughout and closed at near two month high at 26,878.24, up 245.11 points, or 0.92 per cent.
This is its highest closing since November 10 at 27,517.68. Intra-day, it shuttled between 26,917.21 and 26,738.42. It had lost 10 points in the previous session. The 50-share NSE Nifty wrested control of the crucial 8,200 level and ended at 8,273.80, a gain of 83.30 points, or 1.02 per cent, after moving between 8,282.65 and 8,223.70. Today's close is the highest since 8,296.30 on November 11.
The rupee showed some muscle rising 28 paise intra-day against the dollar at 67.77, which had a positive influence. Buying activity was so strong that all the sectoral indices except IT and technology ended in the green, rising by up to 3 per cent. The top gainers on the 30-share Sensex were Adani Ports 4.88 per cent, Tata Steel 3.47 per cent, Tata Motors 3.18 per cent, ONGC 2.73 per cent, Power Grid 2.50 per cent, ICICI Bank 2.41 per cent and Maruti Suzuki 2.28 per cent.
However, TCS, HDFC Bank and Infosys ended in the red with a fall of up to 1.85 per cent. Broader markets were in a bullish form, with BSE mid-cap rising 1.32 per cent and small-cap 0.98 per cent. Hong Kong's Hang Seng firmed up 1.46 per cent and Shanghai composite index gained 0.21 per cent while Japan's Nikkei slipped 0.37 per cent.
Europe too was trading mixed, with London FTSE up 0.15 per cent, Paris down 0.20 per cent and Frankfurt lower 0.10 per cent. Meanwhile, foreign funds sold shares worth Rs 800.71 crore on Wednesday, as per provisional data.
General Awareness
Mega Festival on 350th Guru Gobind Singh Jayanti Organized in Patna
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The 350th Guru Gobind Singh Jayanti was celebrated across the world on January 5, 2017.Marking the occasion, a huge festival known as Prakash Utsav also known as Prakash Parv has been organized in Patna, Bihar– the birth place of the Guru.
The festival which is celebrated every year in Patna is attended by nearly 5 lakh devotees each year. The festival has been organized at the city’s iconic, sprawling Gandhi Maidan.
- Prime Minister Narendra Modi attended the Prakash Utsav, which marks the 350th birth anniversary of Guru Gobind Singh. He reached Patna on January 5 where he was received by Governor Ramnath Kovind and Chief Minister Nitish Kumar. PM Modi offered prayers and served “langar” at the 61-acre area, covered with glittering tents.
- The Bihar government announced a three-day holiday for the event at Takht Harmandir Sahib from January 3 to January 5, 2017.
- A makeshift Gurudwara has been set up at Gandhi Maidan. The Holy Gurugranth Sahib has been installed in view of Prakash Parv celebrations.
- The ceremony was also attended by Punjab Chief Minister Parkash Singh Badal, ministers and other dignitaries from the state. A large number of Sikhs from India and abroad are participating in the week-long festival.
Commemorative Postage stamp
Prime Minister Modi released a commemorative postage stamp to mark the occasion of 350th birth anniversary of Guru Gobind Singh.
Committee Formed for the Celebration
Punjab Chief Minister Parkash Singh Badal held a detailed discussions regarding the celebrations of the mega event with Shiromani Akali Dal President and Punjab Deputy Chief Minister Sukhbir Singh Badal, president of the Shiromani Gurdwara Prabandhak Committee (SGPC) Avtar Singh and the president of the Delhi Sikh Gurdwara Management Committee (DSGMC) Manjit Singh G.K.
- After the meeting a high-powered committee was constituted under the chairmanship of Punjab chief minister, with Deputy chief minister, president SGPC, and president DSGMC, besides eminent Sikh scholars and intellectuals as its members to work out the modalities for the commemoration of this historic occasion with religious fervour, enthusiasm and devotion.
- The Bihar chief minister told that nearly 75 acres of land had already been identified in Patna for the setting up of a ‘tented city’ for the celebrations in view of the expected massive participation of Sikhs from not only different parts of the country but from across the world.
Fund Allocation
The Government at Municipal, Provincial and Federal level has contributed the funds for the events and the new infrastructure planned for the celebrations.
- NRIs and businessmen from across world has contributed Rs. 600 crore (US$89 million) to develop Harmandir Saheb.
- Union Finance Ministry allocated a package of Rs. 100 crore (US$15 million) for the celebrations.
- The Bihar government has spent Rs. 100 crore (US$15 million) on the arrangements and the celebrations.
About Guru Gobind Singh
Guru Gobind Singh, the 10th Sikh Guru, was born as Gobind Rai in Patna on December 22, 1666. He was a spiritual master, warrior, poet and philosopher. Gobind Singh was the only son of Guru Tegh Bahadur, the ninth Sikh guru, and Mata Gujri.
- He was born in Patna (Bihar) while his father was visiting Bengal and Assam. His birth name was Gobind Rai, and a shrine named Takht Sri Patna Harimandar Sahib marks the site of the house where he was born and spent the first four years of his life.
- He was anointed as the spiritual leader of the Sikhs at the mere age of nine and is the tenth Sikh Guru. He was the last of the living Sikh Gurus. His four sons died during his lifetime in Mughal-Sikh wars, two in battle, two executed by the Mughal army.
Guru Gobind Singh is known to have initiated the five ‘K’s that the Sikhs devotedly abide by. These include:
- Kesh: uncut hair
- Kangha: a wooden comb
- Kara: an iron or steel bracelet worn on the wrist
- Kirpan: a sword
- Kacchera: short breeches
- Prime Minister Narendra Modi attended the Prakash Utsav, which marks the 350th birth anniversary of Guru Gobind Singh. He reached Patna on January 5 where he was received by Governor Ramnath Kovind and Chief Minister Nitish Kumar. PM Modi offered prayers and served “langar” at the 61-acre area, covered with glittering tents.
- The Bihar government announced a three-day holiday for the event at Takht Harmandir Sahib from January 3 to January 5, 2017.
- A makeshift Gurudwara has been set up at Gandhi Maidan. The Holy Gurugranth Sahib has been installed in view of Prakash Parv celebrations.
- The ceremony was also attended by Punjab Chief Minister Parkash Singh Badal, ministers and other dignitaries from the state. A large number of Sikhs from India and abroad are participating in the week-long festival.
- After the meeting a high-powered committee was constituted under the chairmanship of Punjab chief minister, with Deputy chief minister, president SGPC, and president DSGMC, besides eminent Sikh scholars and intellectuals as its members to work out the modalities for the commemoration of this historic occasion with religious fervour, enthusiasm and devotion.
- The Bihar chief minister told that nearly 75 acres of land had already been identified in Patna for the setting up of a ‘tented city’ for the celebrations in view of the expected massive participation of Sikhs from not only different parts of the country but from across the world.
- NRIs and businessmen from across world has contributed Rs. 600 crore (US$89 million) to develop Harmandir Saheb.
- Union Finance Ministry allocated a package of Rs. 100 crore (US$15 million) for the celebrations.
- The Bihar government has spent Rs. 100 crore (US$15 million) on the arrangements and the celebrations.
- He was born in Patna (Bihar) while his father was visiting Bengal and Assam. His birth name was Gobind Rai, and a shrine named Takht Sri Patna Harimandar Sahib marks the site of the house where he was born and spent the first four years of his life.
- He was anointed as the spiritual leader of the Sikhs at the mere age of nine and is the tenth Sikh Guru. He was the last of the living Sikh Gurus. His four sons died during his lifetime in Mughal-Sikh wars, two in battle, two executed by the Mughal army.
- Kesh: uncut hair
- Kangha: a wooden comb
- Kara: an iron or steel bracelet worn on the wrist
- Kirpan: a sword
- Kacchera: short breeches
The 350th Guru Gobind Singh Jayanti was celebrated across the world on January 5, 2017.Marking the occasion, a huge festival known as Prakash Utsav also known as Prakash Parv has been organized in Patna, Bihar– the birth place of the Guru.
The festival which is celebrated every year in Patna is attended by nearly 5 lakh devotees each year. The festival has been organized at the city’s iconic, sprawling Gandhi Maidan.
Commemorative Postage stamp
Prime Minister Modi released a commemorative postage stamp to mark the occasion of 350th birth anniversary of Guru Gobind Singh.
Committee Formed for the Celebration
Punjab Chief Minister Parkash Singh Badal held a detailed discussions regarding the celebrations of the mega event with Shiromani Akali Dal President and Punjab Deputy Chief Minister Sukhbir Singh Badal, president of the Shiromani Gurdwara Prabandhak Committee (SGPC) Avtar Singh and the president of the Delhi Sikh Gurdwara Management Committee (DSGMC) Manjit Singh G.K.
Fund Allocation
The Government at Municipal, Provincial and Federal level has contributed the funds for the events and the new infrastructure planned for the celebrations.
About Guru Gobind Singh
Guru Gobind Singh, the 10th Sikh Guru, was born as Gobind Rai in Patna on December 22, 1666. He was a spiritual master, warrior, poet and philosopher. Gobind Singh was the only son of Guru Tegh Bahadur, the ninth Sikh guru, and Mata Gujri.
Guru Gobind Singh is known to have initiated the five ‘K’s that the Sikhs devotedly abide by. These include:
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