Monday, 19 December 2016

Demonetisation rule change: You can make more than Rs 5,000 deposit only once per a/c before 30 Dec

The finance ministry and the Reserve Bank of India have put in place new restriction on deposits of old Rs 500 and Rs 1,000 until 30 December in another effort to curb money laundering.
According to a finance ministry notification (read here), deposits of the demonetised notes above Rs 5,000 can be made only once until 30 December, the last date for banks to take deposits of old notes. However, there is no restrictions on depositing cash under the Pradhan Mantri Garib Kalyan Yojana, a black money declaration scheme under amended taxation laws.

"Tenders of SBNs (specified bank notes) in excess of Rs 5,000 into a bank account will be received for credit only once during the remaining period till December 30, 2016," the RBI said in a notification to banks posted on its website.
The central bank has also said in such cases the notes will be credited to deposits "only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation".
"The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed," the RBI has said.
However, banks can allow deposits of up to Rs 5,000 in value to be credited to bank accounts in the normal course until 30 December.
Moreover, if you have made deposits smaller that Rs 5,000 your account, and if such deposits taken together on cumulative basis exceed Rs 5,000 then they may still have to face the questions from the banks officials. In such cases, you may not be allowed to make more deposits thereafter until December 30.
Also deposits above Rs 5,000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant the limit for deposits stays at RS 50,000.
However, these rules are not applicable to deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana.

Sunday, 11 December 2016

DEMONETIZATION - Impact on Real Estate Prices

Demonetarization Impact on real estate
All the business environment is tremendously shaken up after the money demonetarization of the higher currency notes by the Modi government and many people did not know that this is not the first time that demonetarization decision takes place, in 1946 and 1978 demonetarization done by the ruling party of that time but the impact of the decision is not that much impactful as it is in 2016, this happen because at that time the Indian economy is not that much strong as it is now. It is still too early to accurately gauge the depth of the shakeup this has caused, but its impact on the real estate sector is immediately visible. Since Modi’s surprise announcement, the ripples have been spreading through the already disturbed sector, which has been experiencing excruciatingly slow growth in recent times. Poor sales leading to almost flat prices, heavy liquidity challenges, and high unsold inventory have all colluded to keep real estate sector away from fulfilling its potential – and provide necessary residential stability to average citizens.
impact on real estate-
The impact of money demonetarization on real estate is much higher as compared to any other sector as in real estate sector involvement of black money and cash transaction is much more .Nonetheless, all such rates have been in the optional deals showcase, where money segments have customarily been a veritable 'must'. As it were, the resale properties section will take a major hit. Be that as it may, fleeting agony is inescapable when we search for any possible long haul cure for the infection. There has for long been a strident request to get straightforwardness the area so that the it turns out to be more sorted out, and money dealings should essentially be the principal manifestation of the malady to be managed. The extravagance and top of the line sections of private land will likewise observe a noteworthy effect from this work out, since it is another territory which has seen a considerable measure of installments done in real money. The lawful saving money/financing channels have represented just a little piece of all exchanges in this space. The demonetization move is probably going to bring about extravagance property costs plunging by as much as 25-30% as merchants battle to offload properties to create liquidity. This implies extravagance home purchasers will all of a sudden have a much more extensive data transfer capacity of choices to look over. With dark cash all of a sudden being wiped out of the market, a great deal of financial specialists who have been putting resources into tasks with unaccounted-for cash – and raising costs to book benefits – will be disposed of from the framework, in this way helping a genuinely necessary adjustment.
Impact on the other sector -
In the past one year the decision that take place in the real sector had potentially be the long lasting decision in the real estate sector .
The passing of RERA (Real Estate Regulation and Development Act 2016), the Benami Transactions Act and now the demonetization move will ensure that going forward .now it become more transparent and loose its historic taint. and those who run their business with the integrity will survive . and this will be benefited for those who know their rights and prevent them to get cheated and will no longer need to contend with constantly rising prices. and now they will be able to buy the properties of their choice at affordable prices and the place where they want and the timely possession is also be assured
The demonetization practice was an exceptionally essential stride which will undoubtedly carry with it an enormous shake-up wherever dark cash has assumed a noteworthy part. Over the long haul, the Indian land part will rise more grounded, more beneficial and prepared to do long stretches of managed development. Starting now, there is no purpose behind designers and financial specialists who have directed their dealings straightforwardly and lawfully to freeze.

Monday, 5 December 2016

Demonetisation day 23: Cash shortage noted on payday as angry customers queue up again

Reeling under shortage of currency stock, banks across the country have resorted to rationing of cash in order to handle the huge payday rush at branches. Although claims were made by various banks that adequate arrangement would be in place to tide over the cash crisis on payday, branches are seen rationing cash depending on their currency stock position.
Some banks are disbursing only Rs 5,000 per person while those having better cash availability are offering Rs 10,000 or Rs 12,000 per withdrawal. Making matters worse, a large number of ATMs are still dry despite recalibration of nearly 80 percent of ATMs, while people are struggling with the problem of change as the operational ones dispense mostly high denomination Rs 2,000 notes.
The news updates of day 23 show how people across India queued up in large numbers outside banks and ATMs to withdraw cash from their first salary received after the 8 November demonetisation.

People wait for cash in Delhi
Long queues were witnessed outside most banks and functioning ATMs across the capital, residents said. At Lakshmi Nagar in east Delhi, hundreds queued up outside the only three ATMs that were dispensing cash. In Dilshad Garden, also in east Delhi, most ATMs were dry. There was a huge rush outside five banks in the locality. At an ATM in Khirki extension in south Delhi, people queued up outside banks much before they opened. "I have to pay my landlord, maid, newspaper guy and many others. I am not sure I will get cash as this ATM works only for an hour after it is refilled," Nandini Gupta, a call centre employee waiting outside a Khirki extension ATM, said.
The scene was no different outside the ATMs in Connaught Place in the heart of the city. A resident of Noida near Delhi, Shiv Kumar, even queued up outside the ICICI Bank in Sector 18 hours before it opened.

Long queues at banks in Kolkata
Young working professionals to pensioners, a large number of people queued up at banks long before the start of banking operations on Thursday morning, the first payday after demonetisation.
A number of ATMs in Kolkata — in the city and suburbs — displayed "No Cash" notice while the functional ones mostly dispensed Rs 2,000 notes. Queues at banks in the city were relatively longer as many people wished to withdraw the maximum amount permitted to avoid a cash crunch over the next few days.
Representational images. PTI
Cash shortage in Telangna, Andhra
The queues turned longer as people lined up as early as at 6 am at banks to draw the money to meet their financial commitments on the first day of the month. Employees of private firms including IT companies, pensioners, housewives, traders, students and daily wage earners all had the same complaint — low cash or no cash in banks.
Majority of the banks allowed customers to draw only Rs 4,000 to Rs 6,000. The situation was worse at ATMs, with almost all of them closed. A few, which opened in Hyderabad, Vijayawada, Visakhapatnam, Tirupati and other major towns, soon went dry. The new Rs 500 note is yet to reach the banks in the two states.
The Telangna government has asked nationalised banks to open special counters for employees and pensioners to pay cash. It also directed them to work extra hours to meet the demand.

Salary Day in Kerala
State Finance Minister Thomas Issac had said there was no issue as far as the government was considered in paying the one million-plus people their salaries and pensions. He had expected Rs 1,000 crore to arrive at the state treasury on Thursday, while the banks were also expected to get around Rs 1,200 crore.
However, serpentine queues were seen in front of state treasuries and banks (ATMs saw less of a crowd) across Kerala on Thursday. With ATMs having a ceiling of Rs 2,500, the withdrawal limit in treasuries and banks has been fixed at Rs 24,000 a week, and hence, there was less of a rush at ATMs. In Kerala's commercial capital Kochi, the scene was much the same with people — mostly pensioners — queuing up before the treasuries and banks.
As a matter of abundant caution, additional police force was deployed in front of several banks and treasuries across the state.

No mayhem in Tripura
The crowds at banks and ATMs in Tripura on Thursday, the first salary day after demonetisation, was not as massive as feared by many. In Mizoram, the first consignment of new Rs 500 currency notes along with Rs 100 notes arrived two days back, easing the cash crunch somewhat.
Bank officials in Agartala said a large number of employees withdrew some money in advance from their accounts fearing a huge rush on the first of December. However, the cash crunch continues to be serious in semi-urban, remote and rural areas of Northeast India where most banks do not have adequate currency or where ATMs lack notes of various denomination.