Real reason why Modi govt has carried out surgical strike on your pockets


The media is hailing Modi’s demonetization of old Rs 500 and Rs 1000 note as a masterstroke policy on curbing the menace of black money.

Really?? Hmmmm.

Let’s have a look into few figures;

What if I told you that total Bad Loans of Indian Banks right now is close to Rs. 6,00,000 crore. What if I told you that PSU Banks are in a miserable condition right now, and need immediate infusion of money to shore up their lending capacities.

black money

What if I also told you that few weeks ago, credit rating agency Moody’s had stated that Indian banks required Rs. 1.25 lakh crore capital infusion? What if I told you that in July 2016 the Centre injected 23,000 crore into 13 public sector banks. What if I told you that Finance Minister Arun Jaitley said it in 2015 that the Centre would pump in more than 70,000 crore in PSU banks in coming four years.

And..What if I told you that this demonetisation is nothing but a measure to infuse money in those ailing banks so as to shore up their lending capacities?

Can’t you see people queuing up banks to deposit their hard earned money, waiting hours for their turn?

What other “Masterstroke” would have made this possible?

Just trigger the panic button by stating that your old Rs 500 and Rs 1000 currency is no longer a valid legal tender, and Voila!!! People are queuing up since morning to deposit their hard earned money.

What for? To curb the menace of black money? By bringing in new Rs. 2000 note?

You don’t curb black money by bringing in notes of higher denomination. In fact, you are now simplifying hoarding of black money by bringing in new notes of higher denomination.

Ok. So what would banks do with the fresh infusion of money from public pockets? Lend of course. That’s what their business is. And to whom would these banks then lend their money to?

You? Me?

Indeed, very sweet of you.

You are in the deposit queue dear.

Those in withdrawal queues are these privileged or shall I say chosen ones: (Note: the figures in bracket are their present repayable amount which they owe to various banks)

10. GVK Reddy (GVK Group) (33933 Crores)
9. Venugopal Dhoot (Videocon Group) (45405 Crores)
8. L. Madhusoodan Rao (Lanco Group) (47102 Crores)
7. G M Rao (GMR Group) (47976 Crores)
6. Sajjan Jindal (JSW Group) (58171 Crores)
5. Manoj Gour (Jaypee Group) (75163 Crores)
4. Goutam Adani (Adani Group) (96031 Crores)
3. Shashi Ruia & Ravi Ruia (Essar Group) (1,01000 Crores or Rs 1.01 trillion)
2. Anil Aggarwal (The Vedanta Group) (1,03000 Crores or 1.03 trillion)

And finally
1. Anil Ambani (Reliance Group)(125000 Crores or Rs 1.25 trillion)

The government just carried out a surgical strike on your pockets, and now you are running like chickens. That’s how crony capitalism works.

Now call me whatever you like- Marxist, Communist, Anarchist, Congi agent, conspiracy theorist blah blah blah.

(The views expressed here are solely the author’s own. The facts and opinions appearing in the article do not reflect the views of Janta Ka Reporter and Janta Ka Reporter does not assume any responsibility or liability for the same)


    • You are a anti national citizen or you are black money lender. Aapko dikhta nai how hard every one cooperating to make it success but every one is happy? Aapko jaise logo ko kuch milta nai ki aap masala banana shuru kar dete ho.

      • For me after reading this it’s seems really true all these money again goes to those people who take bank loans and do the bankrupt if normal citizens wants a small amount of loan to start his small businesses for his livelihood the banks never give any loan but these people having such debts still banks trust them and issues more. All these money’s going to go into the Swiss or whatever banks. Everyone knows Vijay malya’s case

        • here point is not on who will get loan, here we want more revenue to get in main stream. Business man take loan for setting up industries which gives jobs so even if this move is to increase money in bank then its for citizen of India.

          I don’t find this article logical as cash currency in India is 5.64% of which 86% was blocked as black money so if RBI wanted money for bank than lot other ways are available. Also we should think, do these business man take loan of crores in cash?No….Money just get credited in Companies account so connecting it with cash deposit is base less.

          • If you are talking about common man
            1. They don’t have stash of money at home.
            2. Most of their money is already in banks.
            3. Most people are exchanging money and whatever is deposited they will withdraw for expenses.
            How’s any of this will put substantial money in banks hand?

      • His point of view is very valid and its not illegal to do this just add this to list of benefits of demonetisaton.Also since banks have more money now they can choose not to pay you 6% interest anymore ( some foreign banks pay no interest like in japan). Its overall good for economy 🙂

        • Why can’t we get these defaulters to pay back loans instead of getting common people to queue for nonsensical logic of deshbhakti. Can’t you see this central govt is completely screwed up

      • How can you say opposing a decision by government is anti-national, does that mean that government itself is whole country??? If a government taking decision without any plan then everybody have a right to speak against wrong decision taken by government!!!

  1. 4-Published on Apr 4, 2016
    Last year, it was Swiss Leaks, a global list with over 1,100 Indians with secret bank accounts in HSBC Geneva, which shaped the debate over black money parked overseas.
    Panama Papers list Full Video, Exposed ! Amitabh Bachchan, Aishwarya Rai , Adani could be Jailed ?
    Dirty Politics

  2. Crap,as expected. People who r depositing will withdraw too in some time. So the banks will not be able to lend as much to the capotalists.

  3. So who was there when these loans are issued … Even without seeing viability of their company s projects ..
    Who were there when when rupee Got ripped with doller making doller loans so expensive for companies… Who were there when current account deficit got so wide even rating agency s are downgraded India rating … These are all happened when UPA miss ruled the nation and giving loans and projects based on nepotism…MODI IS JUST CLEANING THE MESS THAT UPA CREATED… IF U HAVE GENUINE RECORD WITH IT RETURNS WHY WORRY…..U FORGOT TO MENTION JINDAL WHICH IS CONGRESS MP COMPANY

  4. Sir,
    I really appreciate the misleading article.
    How?let me explain.
    First of all,Iam not a Modi Bhakt/or modi hater.Iam a economic graduate and bank employeed
    Pl. understand,that bank nationalisation was a step taken by the then govt. to distribute the hard earned money of the earlier owners among the public.
    After nationalisation ,the banks were purely politisied and became a channel for siphoning the money of the depositors,as stated in this article)collected from tax payers .
    and putting it in assets(loans), created by these industrialists as mentioned in the list.
    Of course, this is the job of the banks to lend money from the deposits collected.,but since nationalisation,not a single rupee of any deposite
    is dubed.
    Now,the janata ka reporter conveniently forgets to mention that there are much large amount of funds is invested by public in all these industries by way of equities,deposits,etc..
    Moreover,all these loans mentioned in the article are not bad loans,they are earning interest
    The author is trying to link unaccounted money with bank NPA,but does not mention about estoppels of tax evasion.
    The total tax collection due to these measures since last year is increased by 18percent.
    By the way,why the names of Tata,Birla,Singhnia,Munjal group industries are not mentioned ?

    • Well explained ! But I see some people would still find it hard to fathom, like the author of this article, what a gross non sense his article is.

    • One simple thing.Due to this Inflation comes down to below5% and GDP comes below 6% and RBI will cut rates by1%.So upfront these corps gain anywhere 250cr to 1000Cr because of lower interest rates.Add on that banks will lend them again due to lower rates. U see past 60yrs and last 3 budgets and see howmuch subsidies they gave corps and to common man. Its purely capitalism silverlining with blackmoney attack.Nothing else as these guys says simply creating hype as after 30th dec mircales are going to happen.

    • Loan are issued long back they just default in last 2.5 year.

      Opposition has a great value in democracy but you have to give credit when its due. I think Modi deserve this time.

      • If you were working on making black money out of the system, you wouldnt allow people to send out 1.6 crores as gift (non-taxable) of which the limit was only raised in may.
        Nor would you immune centre govt MLA for no investigation can happen to you unless given permission. Thats not equally affecting everyone equally.

  5. Hats off to you sir… What an article ! Loved it.?? I know modi bhakts and dalals will call you terrorist secular and blah blah… I support you .

  6. What if I also told you that few weeks ago, credit rating agency Moody’s had stated that Indian banks required Rs. 1.25 lakh crore capital infusion? What if I told you that in July 2016 the Centre injected 23,000 crore into 13 public sector banks. What if I told you that Finance Minister Arun Jaitley said it in 2015 that the Centre would pump in more than 70,000 crore in PSU banks in coming four years.

    And..What if I told you that this demonetisation is nothing but a measure to infuse money in those ailing banks so as to shore up their lending capacities?
    How correct friend! Modi is real loyal chaukidar of capitalist criminals!

  7. (The views expressed here are solely the author’s own. The facts and opinions appearing in the article do not reflect the views of Janta Ka Reporter and Janta Ka Reporter does not assume any responsibility or liability for the same)
    This alone, made my day!!
    Nothing much expected of you anyway. None the less, let me try to make you understand the flaws in it.
    1) All the names of the groups and individuals mentioned here along with the amount are true, but I hope you understand the difference between the words “Debtors” & “Defaulters”. If yes, then need I say more?? If no, then let’s begin, they’re the corporate houses that contribute largely in the economic functioning of such a large nation. They provide both financial flow and employment to the nation and yes they will need funding from the financial institutions. They borrowed loan, they’re repaying it as structured. No where it is mentioned that they failed to repay or they are Defaulters etc.
    2) Infusing funds into PSU banks is no big deal are it is a regular process and comes in the to-do list of every government. For obvious reasons that new money needs to be introduced with the rise in number of population every year and by every government. You obviously can’t go and borrow money directly from RBI, it needs to be circulated via PSU banks.
    3) The main intentions of this particular move were:
    a) To bring an end to Counterfeit Notes (Which were btw equal in number to the original notes)
    b) To nullify the funding to Indian currency to Terrorists, Separatists, Maoists and Naxalites.
    c) To curb Black Money (Which we all know is the most with the Politicians, Upper-Middle Class families & Government Officials (right from top to bottom).
    4) To bring the money out of non-taxpayers (As per 2015 records, only 5 Crore people out of 125 Crore have paid tax. This way more and more people will be bought under tax domain.
    5) The entire amount is to be credited into the bank accounts, increasing revenues to the government as well as to begin Cashless Transactions by encouraging people to use more of Cheques, DD’s, Credit Cards, Debit Cards, Internet Banking and Mobile Banking.
    Now once the cash is deposited into the bank, paid tax if necessary and made into white money or legal money, no one would want to encash it and reconvert into black or illegal money.
    You can get back to me for more doubts!!

    • 1) I think, the list of industrialists have been in the media for quite some time, ever since Mallaya issue surfaced, there was no denial either from the banks or from the concerned groups who took loans (Had they pay their dues properly they would have gone to litigation or at least would have given a PR statement to all the publications, like how TATAs had given earlier in the wake of non-acceptance of deposits at their TANISHQ counters)

      2) In this demonitisation is concerned, Govt had put a restriction to withdrawal and open to deposit, (how bigger the amount is, only catch here is that the depositor has to have proper accounts for the said amount) and hence infusion of money into PSU banks will very much possible w/o showing any glare

      3) To curb the counterfeit notes, the new notes come with no extra check mechanism and also the new 2000 rupees denomination could be easily counterfeited (Hopefully, it did not happen till this time)

      4) I dont think, the tax evaders are so gullible that they would keep all the black money as currency, they would have converted BM as either Gold or by other way, since this was not the first time, the demonetization happened, i trust this is the third time in our nation and previous exercises did not yield the desired result

      I conclude, there is or are some hidden agendas very much underlined as per the article, beyond the said reasons to curb black money, counterfeit notes eradication and to help the poor and honest tax payers. They will keep paying taxes and big honchos run the nation, their way

    • How funny. You mean corruption will stop ? Black money hoardings will not start once again. Who are responsible for corruption and black money. Govt officials and ruling party members who have power are responsible for corruption. Business community is responsible for black money. Corruption will continue with new currency and black money will continue with business community. Now they will be better equipped and find innovative ways to protect their money. Only the tax payers , poor people like daily wage earner and salaried people had faced the brunt and will continue to face if PM continues with his innovative ways of harassment . Way back in 70’s during emergency the IT went after small fish while big sharks were not raided. Same thing is happening now.

      • You said, “Black money hoardings will not start ONCE AGAIN.” so believe that it will go down for now or at least reduce to some extent. Isn’t that enough as a first step

      • The problem is we expect an “all encompassing solution”. Something that does not have loopholes. This is almost impossible. Every solution suggested will have some or the other problems but that does not mean we stop trying altogether!. Black money hoardings may not stop but will get affected quite significantly, which is what we want in the first place. I am assuming you may have been to a doctor at some point in your life. The doctor usually prescribes a medicine which he thinks is appropriate for the disease, he calls you back in a few days to see the effect and modifies the dosage or medicines as per your need. Some people require multiple visits where as some people get cured after a single visit. if the people kept thinking about every side effect and the number of trips required, no body will ever go to the doctor. You can use the same analogy in this case, corruption is a disease so deep rooted that multiple measures would be needed to eradicate it completely. There may be certain unpleasant side effects but it is for the larger good.

  8. Strange article! Surprising to see the author calling hoarded cash as ‘hard earned money’!
    Top 10 guys listed above have indeed played a major role in creating bank NPAs. But do we know why? Because the money they raised was partly paid to politicians (of all parties including Modi’s BJP) and left was used for the projects. Now with this drive some part of that unaccounted money should come back in the system and provide much needed support to the bank. So what, can’t we appreciate a real good step taken by the govt (irrespective of the party one supports) or should we behave like opposition parties and criticise every step?
    I don’t care about the motive as long as the move is able to bring some amount of black money back in legal circulation channel. Hence I feel every honest tax payer (of 3% tax paying population) should support this move.

  9. The announcement made by the Prime Minister about the demonetization of the Rs. 500 and Rs. 1000 notes is not going to yield the desired result of unearthing black money. It will have limited effect and is more like political posturing.
    The claim that the demonetization will check black money, fake currency, corruption and terrorism lacks substance. By the Prime Minister’s own admission, the bulk of black money generation and storage is in off-shore accounts in foreign currency. Counterfeit currency can be generated for any denomination. The announcement of a new Rs 2000 note along with another Rs 500 note does not in any way prevent future possible counterfeit circulation. It’s an established fact that terrorist funds flow through electronic transfers and not through currency transactions.

    By allowing the conversion of the existing 1000 and 500 currency notes within the prescribed time limit, no effective measure is there to prevent benami conversions. Further, transactions through plastic will continue as usual.

    In effect what this would result in is a total disruption of the payments and settlements that are part of daily life of our economy. It will burden the vast mass of our people from daily wage labourers, fishermen, small businesses, traders and vendors selling at the door step. What is going to happen is the disruption in livelihoods and bureaucratic harassment of ordinary people who wish to change the currency notes.

    The basic avenues for money laundering through Participatory notes and diversions through tax havens remains untouched. There is no attempt to curb the roots of generation of black money such as in the real estate sector.

    This is a measure to cover up the failure of the government on the economic front, of joblessness, high prices and no pick-up in domestic demand, crippling all sections of our population, especially the working classes, and ruining the peasantry.

    The government should make public forthwith the names of those holding bank deposits and accounts in tax-havens and those refusing to return humongous loans from nationalised banks estimated at over Rs 11 lakh crores, if it is really committed to recover and curb black money.

  10. okay. Now .. please also tell everyone, with the same degree of conviction – how much of this outstanding loans was sanctioned / disbursed in the last 24 months. The answer will be – LESS THAN 10% of the total outstanding. Please state the amount of Fake currency floating in the market also ? The truth is – the bad economy was inherited by Modi & team, and ever since they are trying to clean this up. So please state facts in FULL when you write sensational articles.

  11. Modi is not fighting black money he is only makng black money empire by collecting even frm a baggers which he wll give it to his company friend .

  12. Even if we assume that this capital infusion was the real motive:

    1. This infusion is a VERY temporary one, it’s true that people will rush to deposit the money BUT it’s the honest tax payers that will be doing it AND who will be withdrawing as soon as they can which will be within a few months down the line.

    2. It does have the very welcome side effect of nullifying (to whatever extent) the black money stashed away.

    3. Lastly it helps get rid of the fake currency as well (again to WHATEVER extent).

    4. The only con is the temporary hardship faced by the people which, in the overall scheme of things and compared to what we stand to gain is completely worth it!

  13. I am just curious, after some point banks will to open to people withdrawing back their money from the bank right? So, how is that infusing money into bank if only not for a short term basis ?

  14. Ok so the biggest flaw in ur theory is that u r saying that poeple are depositing money. But my friend most people aren’t depositing money, they r replacing them with new ones. And ur saying of money going into banks? I rather see a he’ll load of people removing money from atms because they don’t want to waste time replacing the notes at the moment since there will be long queues now.. Spare the exchange for later

  15. Just a simple question – Is any of the debt mentioned in the article categorised as NPA or bad debt? As per my limited understanding taking debt is not bad if repayments are done as per schedule. Most of us take housing loans; for which we make timely payments. Can that be put in the same bracket as crony capitalism? Does the amount of debt define whether it is a a “good” or “bad” debt. Kindly enlgithen.

    • (a) Most of it is NPA or “restructured debt”, a polite expression to describe lenient reschedulement allowing repayment delay even upto 25 years !

      (b) The lenient terms to repay after 25 years is a scheme you can enjoy only repeat only if you have borrowed at least 1000 crores! Specifically excludes the small man!

  16. What if I tell you that expected black money of Rs. 5 lakh plus crores which is in 500 & 1000 denominations & obviously this is the amount goi would gain available for better usage.

  17. .Banks need capital not deposits. Both are not same. While increasing deposit can increase lending, capital is more imporant. Bad debts eat into capital.

  18. You senseless author,
    Only when bank has the money, it can leans it to the public. When twenty lakh crores are hidden by 20% of the people and when it is illegally investment in the names of benomies , then there is more and more gap created between the rich and the poor.

    This money has to come into circulation, into the hands of the common man, that is the idea you dumbo.

    Big corporates may get more fund at the same time common man also can get sufficient funds.

    Please stop writing when you donot have the capacity to think ..

  19. 500-1000 के नोटों पर पाबंदी: ये भ्रष्टों को नहीं, ईमानदार आम आदमी को परेशान करने वाला फैसला है
    By Priyabhanshu Ranjan – November 9, 20167
    प्रधानमंत्री नरेंद्र मोदी की ओर से 500 और 1000 रूपए के मौजूदा नोटों को अमान्य करार दिए जाने के फैसले के ऐलान के बाद देश में अफरातफरी का माहौल है। मोदी ने दावा किया था कि सरकार के इस कदम का मकसद काले धन, हवाला लेन-देन और आतंकवादियों को मिलने वाले पैसे पर लगाम लगाना है। यदि भविष्य में वाकई ऐसा कुछ होता है तो इसकी तारीफ होगी, लेकिन फिलहाल इस फैसले ने आम आदमी को मुश्किल में डाल दिया है और कई सवाल पैदा कर दिए हैं।
    सरकार के इस फैसले से बडे शहरों में रहने वाला मिडिल क्लास तो खुश है, राजनीतिक समर्थन भी अच्छा-खासा मिला है, लेकिन ग्रामीण इलाकों और छोटे शहरों में रहने वाले लोग काफी परेशान हैं। उन्हें इस फैसले का मतलब समझ नहीं आ रहा। बडे शहरों में असंगठित क्षेत्र में काम करने वाले लोग भी इस फैसले से फिलहाल मायूस नजर आ रहे हैं , क्योंकि उनका सारा काम नगद से ही होता है। हालांकि, ये उम्मीद की जानी चाहिए कि आने वाले दिनों में लोगों की तकलीफ कम होगी।
    बहरहाल, 500 और 1000 के मौजूदा नोटों पर पाबंदी लगाकर 500 और 2000 के नए नोट जारी करने के सरकारी ऐलान से सवाल पैदा होता है कि इस कदम का असल मकसद क्या है ? बताया तो ये भी जा रहा है कि कुछ दिनों बाद 1000 रूपए के नए नोट फिर से जारी किए जाएंगे। क्या इससे कुछ महीनों के लगाम के बाद भ्रष्टाचार फिर नहीं बढ जाएगा ?
    पीएम मोदी ने कल ही अपने संबोधन में कहा था कि बडे डेनोमिनेशन यानी ज्यादा मूल्य के नोटों से काला धन जमा करने की प्रवृत्ति बढती है। फिर बडे डेनोमिनेशन के नोट जारी करने की योजना क्यों है ? क्या वाकई मोदी सरकार काले धन पर लगाम लगाने के लिए गंभीर है ?
    सरकार का तर्क है कि इससे भारत को कैशलेस इकनॉमी यानी नगद-मुक्त अर्थव्यवस्था बनाने में मदद मिलेगी। लेकिन जिस देश में करोडों लोगों के बैंक खाते पिछले दो साल में खुले हों, जिस देश में 90 फीसदी से ज्यादा लोग इंटरनेट बैंकिंग और आॅनलाइन शॉपिंग करते ही नहीं हों, उस देश को कैशलेस इकनॉमी बनाने के लिहाज से क्या ये कदम जल्दबाजी भरा नहीं कहा जाएगा ?
    राष्ट्रीय जांच एजेंसी के मुताबिक अभी भारत के बाजार में करीब 400 करोड रूपए के जाली नोट मौजूद हैं। यदि ऐसा है तो यह बाजार में मौजूद कुल धन के 0.05 फीसदी से भी कम है। तो ऐसा कैसे कहा जा सकता है कि 500 और 1000 के मौजूदा नोट अमान्य कर दिए जाने और फिर 500 और 2000 के नए नोट जारी करने से आतंकवाद की कमर टूट जाएगी ? दुनिया के कई देशों में बडे डेनोमिनेशन वाले नोटों पर पाबंदी है, लेकिन इससे आतंकवाद पर लगाम लगाने में कामयाबी मिली हो इसके सबूत नहीं मिलते।
    क्या सरकार के इस कदम से डीफ्लेशन यानी वस्तुओं एवं सेवाओं की सामान्य तौर पर रहने वाली कीमतों में जबर्दस्त गिरावट का खतरा नहीं पैदा होगा ? डीफ्लेशन उस स्थिति को कहा जाता है जब महंगाई दर शून्य फीसदी से नीचे चली जाती है। यह स्थिति इंफ्लेशन यानी मुद्रास्फीति से भी ज्यादा गंभीर होती है।
    यदि 500 और 2000 रूपए के नए नोटों में नैनो ट्रैकर चिप लगी होने की बात सही है, तो सवाल नागरिकों के निजता के अधिकार के हनन का भी पैदा होता है। मीडिया के एक हिस्से में आई कुछ खबरों में बताया गया है कि गलत तरीके से पैसे जमा करने वालों की पहचान नैनो ट्रैकर से आसानी से हो सकेगी। इस लिहाज से देखा जाए तो ये कदम सही है। लेकिन उनका क्या जो ईमानदारी से पैसे कमाते हैं ? नैनो ट्रैकर के जरिए बैंकों और सरकार के पास ग्राहकों का डेटा चला जाएगा। क्या सरकार गारंटी देती है कि इस डेटा का गलत इस्तेमाल नहीं होगा?
    पिछले दिनों हमने देखा कि कैसे देश के लाखों लोगों का एटीएम कार्ड डेटा चोरी कर लिया गया। पहले तो सरकार ने इस घपले को दबाने की कोशिश की, लेकिन पोल खुलने के बाद बैंकों पर ठीकरा फोड दिया। पर असल सवाल तो ये है कि एटीएम कार्ड का डेटा चोरी होने से जिन आम लोगों का नुकसान हुआ, क्या उन्हें उनके पैसे मिले, या भविष्य में पैसे मिलने की कोई उम्मीद है ?
    अहम सवाल ये भी है कि क्या वाकई 500 और 1000 के नोटों पर पाबंदी से काले धन पर लगाम लग जाएगी ? यदि ऐसा वाकई होता है तो ये उस वक्त क्यों नहीं हुआ, जब मोरारजी देसाई की सरकार ने 1978 में 1000, 5000 और 10000 के नोटों को अमान्य करार दिया था ?
    सवाल ये भी है कि विदेशों में जमा काला धन कैसे आएगा ? सरकार इस दिशा में क्या कदम उठा रही है ?
    बहरहाल, सरकार के इस फैसले का दीर्घकालिक प्रभाव क्या होगा ये तो आने वाले वक्त में पता चलेगा। लेकिन फिलहाल सच्चाई यही है कि सरकार के फैसले ने आम आदमी को पसोपेश में डाल दिया है और लोगों की शुरूआती प्रतिक्रिया राजनीतिक तौर पर बहुत मायने रखती है!
    (लेखक युवा पत्रकार हैं)

  20. Dude, tackling loan defaulters is a different issue than tackling domestic black money. This move is to tackle the later issue. All loan defaulter industrialists are legal defaulters. It’s not a black money issue. Currently about 14 tr rupees are in 500 & 1000 notes, out of which may be 40% is unaccounted and govt had no control over it. Govt had spent 120 bn rupees to reclaim the whole 14 tr. and govt will have full control over it.

  21. Mrs Anjali Damania ‏@anjali_damania 9h9 hours ago Mumbai, India
    BIG NEWS: This news was on CNBC
    SBI, PNB, BOB, Union Bk were showing neg growth. Now HUGE jump in deposits? Those close to Govt were aware?

  22. How does these opinions change the fact that people hoarding money in higher currency notes will be forced to dump the amounts above their declared assets ? Of course some of the cash would be laundered through common people who do not come under any tax bracket but what about the rest ? How would they continue to hoard after December 2016 ? Please let me know.

  23. Nice financial understanding streached to connect 2 unrelated topics without addressing any. The issue of demonitization and large (defaulting) loans are different issues and need different handling.
    As for the capital infusion in banks, is a great thing as if the money is in banking system is all white. And more over it also gives better control to RBI to control the money supply to curb inflation and manage liquidity.
    Although I agree that if there are big defaulters they can not not pay and still enjoy the privileged life. May be that’s what is on the cards for government.

  24. DINESH KUMAR ?? ‏@DineshRedBull 10h10 hours ago
    देश में लोग भिखारी हो गए है, जिस की वजह से अब दुकानदार मन मानी रेट से सामान बेच रहे है, भक्तों को 15 लाख मिल गए, गरीब आदमी जहर खाएगा क्या?

  25. What has that got to do with demonitisation loan given to corporates are in white and it is given against a collateral and can be recovered it generates more business, employment, economy grows and it is not black money and action against counterfeit currency from Pakistan for terror funding all some frustrated Pappu Logic.

  26. If you want huge loans and business contracts from Banks and Government. Just fill fuel and send your flight for election campaigning – like ADANI did for Modi?✈️

  27. What if I told you that you’ve little or no knowledge as to how banking industry functions, what is meant by infusing funds into banks nor any of the issues dealt with by you, Farhan Rahman?
    The only thing that comes out clearly from your somewhat lengthy write-up, is your hatred for Narendra Modi

  28. Farhan Rahman, knows nothing about banking and ought not attempt writing anything about it. His ignorance comes out loud & clear from his confusion:
    Depositing of huge funds by customers into their respective accounts has resulted in infusing of funds into banking industry discussed by Arun Jaitley. Thankfuly the writer has offered a wide choice to the readers, to call him as:Marxist, Communist, Anarchist, Congi agent, conspiracy theorist blah blah blah.
    I accept the offer, in the spirit it’s offered saying, ‘You could be anyone of these but one with a financial background’
    Don’t write on a topic, you know little or nothing about
    Eknaath Nagarkar

    • Eknath i think you better come with facts. Bank deposits are certainly shored up. Farhan is Right it is a step to keep these inefficient psu banks and their lousy employees to continue in business for the service of crooked businesses with law breaking politicians

  29. If it was to accomplish the lending capacity of a bank, the first step would be to remove the 200% tax panalty or increasing the limit which currently is precisely 2.5 L/- Wouldn’t it be nice if more money could be deposited?

    • There is no limit on deposits. You can deposit billions if you want. No one will stop you. And the 200% tax is levied of the deposited money if it is found untaxed , illigalli earned.
      Up to 2.5 lakh deposits no one will ask from where you get that. More than that, you will be in IT lenses.

  30. None of the cash deposited into banks is for permanent basis. All will be withdrawn at the earliest by the account holders. Banks know about this but not our dear author. Banks are not idiots to put this funds for lending overnight. Relating to loans the author as well as me can get it from any bNk provided we have the required documents and prescribed form of guarantee.

  31. dude, first read how an economy works and what is the role of banks in maintaining the stability of an economy, then post such articles 😛

  32. The writer understands only lending part of banking, banks lend to repay with interest. Also if u deposit money in any bank then also u wil get interest apart from saving. I guess he never tried it and only deals in cash in hand(black or white) and commenting with half knowledge or just trying to find fault with others with misleading propoganda

  33. What if I told you that all the above ten defaulters were very close to congress and all the money were lent to them during Congress government. Not a single paisa was given to them by Modi sarkar. Please stop whining and spreading rumors.

  34. Flawed logic. Let me tell you how:

    1> I have 50k at home for my monthly expenses. I can’t use the old notes anymore. I deposit them, and I withdraw them.

    Where’s the question of ‘keeping it locked’ for banks to lend.

    2> I have 1 cr cash, which I had kept to buy a property / any other business.

    Question is, why do I have 1 Cr cash outside and not in bank. Isn’t it illegal to transact without keeping it accountable. Am I not responsible for the black money market ?

    3> I have 10 Cr cash. Errr ‘let it be’ can’t even go to banks and talk about it.

    End result, black money loitering around curbed.

    I don’t understand how – 6,00,00 crs will be generated without being accountable.

    Kuch bhi 😀

  35. If the Claims Done by the writer is correct, then you should bow to the govt. for such an action otherwise if the banking system had failed, we wont be seeing que , We would be seeing Riots on the street and may be even a Civil war.

    And please note that this Burden was Inherited not created.

  36. So the writer things that depositing money in bank will make people lose their hard earned money. You one should keep all his hard earned money in cash, wow

  37. Better the Author of this who calls is negative to the citizens of india contest for the P.m seat and why dont you speakk about demonitisation done in 11970 and that Ruling government

  38. Stupid news…. Even govt. can’t do anything with these 500 and 1000 notes…. As these are now no legal tender…. Govt. is taking back the money so that they replace it with legal tender….
    Now the question is why govt. coming back with 2000 note is…. India is a big economy and a maas ppl don’t go cashless only bcos they r uneducated and don’t operate internet or fear of getting phishing… So to run such a big economy 2000 rs. note or 5000 note is very much reqd. Now if somebody thinks it will again create black money…. Forget it…. They can’t hoard black money for long time …. Govt. will withdraw 2000 note too anytime say in next 5 to 10yrs
    This all has been done to bring maximum ppl on cashless or plastic money…. And hence govt. right from 2014 planned …. Right from opening bank account to IDS system to declare black money
    And ha…. govt. can’t use this money to provide loan to any company bcos it’s not a legal tender
    So rather putting ur smart head into this support govt. decision

  39. Banks are already funded by deposits and not by government you ignoramus. You have unwittingly made out a case that the move is favourable for the economy although you had set out to make a point against it.

    Cash lying in vaults unutilised is bad for the economy. Money lying with banks for lending puts them to productive use.

    Not everyone who deposits money in a bank borrows from it. He in fact gets a return on it. The existing borrowers benefit from it since their interest rates are lowered. The economy in general sees a lowering of prices on account of reduced interest costs.

    Ignoramuses like you are writing articles as journalists. What has the world come to!

  40. I am not understanding what wrong in lending money to big companies, they have to pay intrest to bank it’s not free. And infusion of money which is almost dead in economy is good for PSU banks. Remember these companies providing jobs too. My only concern is the citizens who enterred into to mainstream economy are further not shielded from effects of global economic failure any more.(we seen in 2008, inspite of global crisis, most Indians below middle class not affected by it as compare to other countries specialy European as they are almost all in mainstream)

  41. 1. The withdrawal restriction is only on cash there is no limit for cheque or electronic withdrawal so how does banks benefit?
    2. List of names given when and who gave the loans? Modi sarkar ?
    3. What about multiple scams money?

  42. Jhand kar diya logon ka ….upar se bolte hain sabar rakho……bc khud toh in logon ne jana ni bank…..inhone toh black money bhi pehle white kar li thi apni… modi forgets that in past he is chaiwala……so he forget the pain of poors or farmers now……now he,s family member of ambani & adani,s…..upar se congress or aap…khud hi lad-lad ke mar jaye kisi din bc sare politicians

  43. You seem to sound logical.Do you mean big ppl kept black money?
    Any one can make allegations in the name of freedom of speech, **BUT** Do you have really proof on what you quoting.
    Please do not create panic in common ppl

  44. Blah blah blah. Haters gonna hate…. Anyways the cash stock pile in my house is useless now…. So lets write some crony article.

  45. i just came here to see the comments and after reading through the comments my faith faith in humanity has been restored… many people questioning the flawed article….God job every one

  46. There is an open letter that has been sent to Mr. Around kejriwal. I think you should read that. I know it has a few technical terms. But i think it will help you understand how the demonitisation can help reduce black money.

  47. A completely biased and nonsense report which is the USP of this website JANTA KA REPORTER. It must be kept in mind that this website is run and operated by AAPpeopke who are hell bent to discredit this historic step of PM. These people don’t know abcd of economics but tell high about it. If money is infused in banking system what harm it would cause to common man. If the amount is kept in household, will it earn even a single penny. Money kept in houses are worth nothing except giving you a false sense if richness. Furthermore, don’t you think, the hoarders, corrupt, terrorist and Naxalite etc all are afraid of present decision and they are at a fix what yo do with the illegal currency. Rather, I must say, only those people are talking against this decision who are any of the above or beneficiary of the same.

  48. Your disclaimer takes the cake.You say you do not assume any responsibility or liability for the views expressed as they are authors own.OK. But all the media promptly disallows any reader’s comment if they do not agree with it and do not display it.Is this not double standard?

  49. What if I tell you that you have not applied common sense before writing this foolish article?
    What if I tell you that bad loans didnt start on May 16th 2014? Majority of these are from UPA govt!
    What if I tell you that pumping money to public sector bank is not a bad move?
    What if I tell you that removing 500,1000 denominations and adding 2000 will curb black money stored in the form of cash? For knowing why 2000/- denomination inclusion curbs black money helps the purpose, read Mehul(CA)’s open letter to Kejrival!
    What if I tell you that lending money is not only for big companies? Lot of steps are already taken to curb bad loans!
    Now who is most affected personaly? You or Me?
    Aaah… How sweet of you 😉

  50. Clearly you have no clue of financial functions, and maybe that’s how you don’t know how the black money can now be traced through bank statements and accounts and linked to every defaulted and hoarder this country has.

    But again, I don’t want to waste my knowledge educating the dumb crowd like yours, who can never believe a move this significant neither can be proud taking part in it!

    So, whatever you write doesn’t matter anymore, cause the process is well studied and maintained to curb the back money.

  51. Well written article, but don’t understand what should banks do with the deposited money without lending it to someone? Can you please explain it?
    Please don’t mislead people with drawing false conclusion.

  52. It’s unfortunate that people come up with weird conspiracy theories to satisfy their fictional facts. Like Malaysians who believe their plane was bought down by CIA, middle east geniuses who believe America is out to destroy their religion…and now this article. Relating bad loans to corporate with demoniterization of 500 & 1000 bills.
    Tired of reading agendas by pseudo journalist.

  53. Hi Mr. Author.. even if I assume that this is nothing but a way to infuse the money into ailing banks and PSUs as per your opinion, even then it is a masterstroke which you probably failed to see. With this infusion of money , the banks will have more liquidity to lend to the public which might result into a cut in the interest rate. Aam aadmi instead of keeping money in their chest, will deposit the money in bank and earn interest against it. In such a case as mentioned by you , it’s a win-win deals for the Indian banking system and common man . So what is your problem with that? Moreover, I hope you must have heard a lot of bm being retrieved from all over the places in the country and I am sure with an open mind and open eyes you will be able to understand the effectiveness of this flush out excercise.?

  54. Sir, very nice misleading article. Typed in good english with usage of economic words.

    I would also request you to please publish the details of money floating in unorganized markets. If you calculate, I guess you will get the names of few more. Ambani and Adani.

    If you are highlighting the need of more deposits and financial support to banks, please also highlight the reason for the mentioned need, the NPAs, especially the reason for NPAs. Please mention sir.

    Its easy to showcase the problems to society. But, sir, if you have calculated the large corporate ‘ accounts, kindly check the other economic issues as well like inflation, taxes etc. This move will certainly change the economic values and figures may be not in short term, but in 5-6 months. To impact positively the lower, middle and upper middle classes of the society. This move will support government to implement their planned policies in a more structured and transparent manner.

    A courageous move to improve the entire economy.

    A big thumbs up for modi government!!

  55. Guys the numbers you are quoting are not declared NPA’s but looking and these companies have taken for their projects!!! There is a lot of inference between NPA’s and Debt. Do you know and can you provide data for the equity portion of these lans?? You will not as this will expose your bias!! This government is setting right 50 years of Congress misrule!!

  56. Bhai janta ke reporter aap ki report padi or samajne ki bhi koisish ki to kuch sawal mere maan main uthe to soch itne gyani aadmi ka post pada hai to sayad jawab bhi mil jaynge. 2000 ke note se black money kaise badegi pehla quest to yahi hai haan kisi ni ghar par pehle se hi chaap kar rakhe honge to zarro badh sakti hai. Second question hai fake currency badh hogi ya woh bhi chalti rahegi iska kya answer hai. Third drugs ka karobaar tapp hoga ya wo bhi yun hi chalta rahga ya banko main drugs ki bhi kami pad gayi thi taki log is yojna ke tahat drugs bhi banko main zama karea sake.question no 4 bodo ulfa nexalite kasmir ke algawsdi logo ki kamar totegi ya wo abhi bhi pahle jitni mazbooti se khade rahenge.questio no 5 agar is yojna se desh 1000 step aage na ja kar 10 step hi aage jayega to bhi ismain bura kya hai

  57. जब आदमी का दिमाग , सर और घुटनों के बीच में कहीं फँस जाता है ना, तो वो ऐसी हूतीया बाते करता है ॥ दिमाग से पैदल, 2000 से 1000/500 के नोट बंद होने का लेना देना तेरे जैसे झंडू को समझ नही आयेगा ॥ तो तेरी नजर में हजार पांच सौ के बदले हजार पांच सौ के नोट देने चाहिए थे और पुराने नोट जमा कराने का टाइम भी?? ताकी मैं रोज सुबह पुराने पाँच सौ हजार रूपये के नोट जमा कराऊँ और शाम को नये हजार पाँच सौ के नोट बैंक से निकाल लाऊँ, फिर अगले दिन सुबह पुराने पाँच सौ के नोट जना कराऊँ और नये निकाल लूं शाम को और ऐसा करता जाऊँ और कालाधन सफेद कर वालूं ॥ फिर जब नोटिस आये और पुछे मुझसे इतने पैसे जमा करने के लिए कहाँ से आये तो मैं बोल दूँ “कहाँ इतने पैसे सर, मैं तो सुबह जमा कराता था और शाम को निकाल लेता था और सुबह फिर वो ही शाम के निकाले हुए जमा करा देता था ॥ क्यूंकि बैंक में 1000/500 के नोट कितने जमा या निकाले गये बस ये सूचना आती है, ना की नये कितने निकाले और पुराने कितना जमा कराये ये सुचना ॥ पर तुम जैसे अटकी बुद्धि लिए लोग ही ये समझ ले तो कहने ही क्या ?? ?? बेटा वो पीएम है, तेरे जैसे से हजार गुना ज्यादा दिमाग वाले लोग उनके आसपास घूमते है ज्ञान देने के लिए ॥ तु ना दे ॥

  58. That is a dumb way of analysing the situation by article author. When somebody deposits money in banks it appears in Liability side and this is not part of core capital for capital adequacy

    This is not a tier-i or tier-ii capital

  59. No economist, nobody, including this (intelligent) author, for whose story a lot of ignorant and ordinary readers will fall flat, seems to understand the relevance of getting out 2000 rupee notes. Please remember that it is not possible to remove 1000 and 500 and replace them with 100 alone throughout the country within a short time. So for the time being 2000 notes have been introduced. Please remember this is a temporary measure and this note too would get demonetised within a year or two. This way whosoever manages to convert their existing black money into 2000 rupee notes (obviously they will keep them in 100s) will find themselves in soup and totally sunk. Finally only 100 rupee notes would remain and that is the ideal situation. America is such a huge economy of billions and trillions of dollars and what is biggest currency note? 100 dollar note. This is the best time for honest people to shift to 100s and below denomination for small transactions and go cashless for all transactions above even 1000 rupees. Let the others keep shouting. Jai Hind.

  60. So thats maybe one side of the story…would you want to reveal the entire story instead Mr Farhan Rehman…if you write you it for positivity and not for negativity there are positive sides as well and much more than what have written in your extremely skewed view.. Let people decide on the entire story and not your skewed view… Right now your view seems so narrow that you seem as an anti-national.. Or a person really affected by demonetisation… the actual people standing the que are not complaining but people like you are there to demoralise everyone… its such a SHAME!!

  61. The opinion seems generated from indigestable Fat black bellis, who are not able to digest the Modi’ move. If you probe the past you will very well understand Indian Banks can very well sustain from up and downs, this is not my opinion but the history says. If u introspect the past, In 2008 most of the notorious banks throught the world tasted the financial crunch, but the Indian Banks are not. This is because Indian Banks have huge customer base and low ticket size of deposits. You may say in 2008 the defalted figures might be less, but the bank accounts are increased in manifold after 2008. The deposit base also increased. So the fallout theory of Indian Bank is a false propaganda of Black sheep.

  62. The key things one should understand about bank accounts
    The ‘money’ in your bank account does not represent physical cash that you can hold in your hand; it is simply an accounting liability from the bank to you, and only exists as a number in a computer system.
    We now use these bank liabilities / accounting entries to make payments for over 99% of all transactions (by value). Therefore we could describe bank liabilities, bank credit and bank deposits (which are all the same thing) as being equivalent to money in the modern day.
    Banks create bank deposits (the money in your account) when they make loans. They add liabilities to the borrower’s account, and simultaneously add an asset (the loan contract) to their balance sheet.
    The repayable principal of the loan is recorded as an asset. However, the interest payable isn’t recorded as an asset on the balance sheet, but is just recorded as income as and when the interest is paid.
    The money that banks use to pay each other – central bank reserves – is itself created out of nothing as an accounting entry.
    In summary, what we use as ‘money’ – the numbers in our bank accounts – are simply accounting entries made by banks. These accounting entries make up over 86% of all the money that we use today.


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