FM Says Won’t Roll Back Note Ban; You Can’t, Prods Chidambaram

P Chidambaram said the government was at “a point of no return”.

Finance Minister Arun Jaitley (L) and P Chidambaram (R). (Photo: Altered by The Quint)

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• On Thursday, the Rajya Sabha was adjourned four times until 3 pm.
  
• The House witnessed an uproar over the Opposition’s demand for the Prime Minister’s presence in Parliament.
• Economic Affairs Secretary made five key announcements, including the exchange limit to be reduced from Rs 4,500 to Rs 2,000 from 18 November.
  
• Mamata Banerjee and Arvind Kejriwal addressed a joint rally panning the government for its policy of demonetisation.
  
• Toll suspension extended till 24 November midnight across all National Highways.

Updated at:18th Nov, 2016 at 10:20 AM

Point of No Return from Demonetisation, Says Chidambaram

Speaking to CNBC Awaaz, former CEO and Chairman of the Royal Bank of Scotland in India Meera Sanyal spoke of the repercussions of demonetisations.

The government has assumed that the entire cash economy is black economy and what they have done in one stroke is suck the liquidity of millions of businesses, as a result smaller businesses will suffer terrible losses, people will lose their jobs. 

Meanwhile, former Finance Minister P Chidambaram told CNN in an earlier interview that it is a point of no return.

There’s no way out of this. You have already broken the egg, hoping that you will make an omelette, but when it doesn’t turn out to be an omelette, you can’t make the egg whole again. The first order effect in farming will be that there’s going to be no money to buy seeds and fertilisers in the sowing season which means vast acres of untilled land. People don’t have money to pay wages, so employees will be laid off.

He disagreed with Finance Minister Arun Jaitley remark on the advantageous effects of demonetisation on banks and thereby the economy.

Jaitley had said, “Banks will have far more money to support interest on trade, interest rates will come down and Indian economy will go up.”

Chidambaram said Jaitley’s assertion is “clearly speculative”, maintaining that Jaitley has made his claims by the higher number of deposits that people are being forced to make in banks only to withdraw it later.

Updated at:18th Nov, 2016 at 10:20 AM

“The Ambanis and Adanis Knew About Demonetisation”, BJP MLA Says on Tape

Referring to a video footage of a BJP MLA saying “Ambanis and Adanis knew about demonetisation, members of Congress have demanded to know why no action has been taken against the MLA if his claims were false.

Also Read: ‘Ambani, Adani Knew of Currency Ban’: BJP MLA Caught on Tape

Updated at:17th Nov, 2016 at 7:12 PM

Bhutanese Currency Being Used as Legal Tender in Northeast

Along the border regions between Assam and Bhutan in Kokrajhar district where Bhutanese currency is generally used for transactions cross-border dealings, Bhutanese money is now being used as a legal tender.

For the lack of ATMs within 50-60 km radius, people are being compelled to exchange Bhutanese currencies against demonetised Rs 500 and Rs 1,000 notes.

Although Bhutanese currency is equivalent to Indian currency, after demonetisation, an Indian note of Rs 500 is getting exchanged for only Rs 400 worth of Bhutanese currency.

The Northeast Today quoted locals as saying,

We are being forced to use Bhutanese currency in these parts. If the government could send mobile money vending machines, it would help us immensely.

Updated at:18th Nov, 2016 at 10:09 AM

“Situation Already Normalised”, Says Finance Minister

In an interview with ANI, Finance Minister Arun Jaitley lauded the banks across the country for managing the panic situation over the week. He said with the introduction of the indelible ink, the crowds have thinned down and “there’s no panic”.

The situation has already normalised. It’s a commendable task that the banks have done. I expect every political party to support this huge effort, because it will mean that India’s formal economy will increase. Banks will have far more money to support the economy. Unnecessary panic has been spread, didn’t expect Chief Ministers to spread panic.

He also criticised the Opposition to creating “unnecessary panic”.

We said we are ready for a debate, the debate itself showed that the opposition had very little to say, so now they’re running away from the debate. They have compared this to Uri attack but what is the government’s vested interest in demonetisation? This is only to make the economy cleaner.

On questions of the Prime Minister’s absence in the Rajya Sabha, Jaitley said justified “the government is a collective effort”, maintaining that the PM doesn’t have to always respond to all queries himself.

Updated at:17th Nov, 2016 at 5:59 PM

Govt Demands Apology Over Ghulam Nabi Azad’s Remark

Addressing the media, Congress leader Ghulam Nabi Azad said people are in a fix over the lack of cash.

If a patient is waiting to be discharged from the hospital, the family can’t pay the bills. The hospitals wont discharge a corpse even if the outstanding bills aren’t paid. But there’s not cash. BJP leaders are not going to their own constituencies due to fear of being beaten up by people.

BJP leaders demanded that Congress ask Azad to issue an apology for comparing demonetisation with Uri attacks. “You cannot compare this to a terrorist attack on the Indian soil. Azad is trying to justify the Uri attack.”

Updated at:18th Nov, 2016 at 10:05 AM

Didi Predicts Financial Doom

West Bengal CM Mamata Banerjee said the country is heading towards a financial crisis.

Now they have reduced withdrawal limit to Rs 2,000, it means that the government lacks funds. The country is going into a financial crises.

Updated at:18th Nov, 2016 at 10:05 AM

Adjournments Aplenty

On the second day of the winter session, the Rajya Sabha was adjourned for four times till 3 pm due to uproar over demonetisation. The first few adjournments came when many the DMK and the Congress members gathered near the Chairman's podium and raised slogans against the government. The MPs demanded Prime Minister Narendra Modi's presence in the House.

The session finally started with Opposition leader Ghulam Nabi Azad accusing the BJP of being responsible for the several deaths in the wake of demonetisation.

There should be an air strike on the BJP. It is responsible for the death of so many because of demonetisation. Pakistani terrorists did not kill even half of our people in Uri than those who have died due to the government’s wrong policy. Till the Prime Minister comes to the House for discussion, we will not let the House function.

Ghulam Nabi Azad

Updated at:18th Nov, 2016 at 10:05 AM

To this Venkaiah Naidu responded with:

The leader of the Opposition is insulting the nation by making remarks comparing this with Pakistani terror attacks, he should apologise.

Azad replied with:

You (BJP) attend marriages and functions in Pakistan and lay out red carpets for them, and you are saying this to us?

The Opposition’s comments triggered another wave of chaos which led to the Rajya Sabha being adjourned till Friday.

Updated at:18th Nov, 2016 at 10:05 AM

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Mayawati Reiterates Opposition’s Demand for Modi in the House

BSP Chief Mayawati. (Photo: PTI)

Earlier in the day, the Bahujan Samaj Party supremo Mayawati reiterated the Opposition’s demand about the Prime Minister being present in the House.

Launching a scathing attack on the government, Mayawati compared demonetisation with an "economic emergency" thrust on the nation.

Questioning the timing of the move, implemented when elections are due in five states, she said it would rebound against the BJP in the 2019 general elections and the party would face defeat in the assembly elections in the five states.

Also Read: SBI Writes Off Loans Worth Rs 7,016 Cr; Mallya Among Defaulters

Masses are in pain. The Prime Minister must be sleeping after taking pills. The move is without preparedness and people will punish BJP in 2019 during general elections. People of five states going for elections including Assam, Uttar Pradesh and Punjab will punish BJP. It is an immature decision taken in haste and the whole country feels that is an ‘economic emergency’.

She added that it was like a "Bharat bandh” situation when the ATMs did not function during the initial two days when the Prime Minister made big claims in Japan, also alleging that the BJP had resorted to corruption and people were brought to Modi's recent rally in Ghazipur by paying money.

The BSP chief sought to know why Prime Minister has sought 50 days time when he took 10 months for his secret preparations for the move.

Also Read: PM Modi, Your Team Erred in Separating Demonetisation From VDIS

At the same time, she said if Modi really wanted to curb black money, he should take action against his party leader from Karnataka who was also a mining mafia.

Updated at:18th Nov, 2016 at 10:05 AM

Mamata, Kejriwal Pan Demonetisation in Joint Rally

Addressing a public rally with Delhi Chief Minister, Trinamool Congress supremo and West Bengal Chief Minister Mamata Banerjee on Thursday warned the Centre of intense protests if the problems being faced by people over demonetisation are not resolved in three days' time.

Tomorrow they’ll ban food. And then will you (Narendra Modi) run abroad? You can run away but the common man can’t. We will not go, will fight against BJP. We are still alive, we will not forget this. If people are with us, we can do anything. We do not fear, we fight. If you dare – imprison us, shoot us. We do not fear, we fight.

Mamata Banerjee

She also said demonetisation will push back the country by 100 years.

Arvind Kejriwal added:

I’ve put my life at stake to fight corruption. Modi ji, if this were truly a move against black money, I would have been the first to support you. This is a scam in the name of nationalism. Modi ji only waivers the loans of those close to him while we get duped.

Also Read: Withdraw Note Ban: Mamata, Kejriwal Give 3-Day Ultimatum to Modi

Updated at:18th Nov, 2016 at 10:05 AM

Things Are Getting Normal: ICICI Bank MD

Commenting on the ordeal of ATMs running out of cash, Chanda Kochhar, Managing Director and CEO of ICICI bank, said the situation is gradually improving.

Situation is getting normal gradually, queues are also getting shorter, cash is being made available at money exchangers at airports.

Chanda Kochhar

Also Read: Currency Ban Is Tearing Rural Banks Apart

Updated at:18th Nov, 2016 at 10:05 AM

Five Big Changes to Currency Ban

Ahead of the second day of the Parliament session, Economic Affairs Secretary Shaktikanta Das, addressing the media, made five key announcements, including reducing the exchange limit from Rs 4,500 to Rs 2,000 with effect from 18 November.

Updated at:18th Nov, 2016 at 9:53 AM

Here the five big announcements:

Updated at:18th Nov, 2016 at 9:53 AM

Also Read: Demonetisation: Mr Modi Can Still Salvage a Terrible Decision

Updated at:18th Nov, 2016 at 9:53 AM

Updated at:18th Nov, 2016 at 9:53 AM

Also Read: Exchange Limit Slashed to Rs 2,000 and 4 Other Changes to Note Ban

Updated at:18th Nov, 2016 at 9:53 AM

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Updated at:18th Nov, 2016 at 9:53 AM