Rulomania

Everywhere it is flashing that 53rd Rule change in 30 days by RBI...
No doubt De-Monetisation/Modi ( as they are synonyms these days) are the real root cause of it.
But why were the initially defined rules had to be revisited...
I see two reasons to it
a) Lack of foresightedness
b) Lack of discipline on general Junta part


The case is weighed equally on both sides of the above mentioned points.

In my earlier post I have put my views on the point (a) already hence here it will be point (b) only.


As a citizen of India how wisely did we exercise the rights given to curb the black money deposits.
There are few handful in the society who are always willing to find a way to by-pass the rules and that results in punishment for all.
The population of India has always been a boon as well as bane for us, because of this huge number the handful turn out to be lacs and make the life of rest crores to suffer.
I completely agree that the poor or lower strata of the society is law abiding and the damage of their deeds is minimal.
But because of these handful all are suffering.
What did these handfuls do
1) Deposit money less than 2.5 lac in their account to help others
2) Use multiple ATM cards by distributing money online and bypassing 2500 limit
3) Help in purchase of  gold in past dated bills/vouchers
4) Maintain illegal accounts
5) Provide new currency illegally & start hoarding new currencies
6) Allow usage Jan dhan accounts for small allurements
etc

No doubt all of the above cases should be tracked and be brought to justice as it has made masses to suffer.
But India is a vast country and has challenges of infrastructure availability, but still agencies are doing a good job with 3185 cr  have been unearthed or seized.
Last but not least, if this move fails to bring Political parties under their gambit then I will say a major chunk of goodwill for this move is lost.
Parties need to be accountable and no such blanket approvals for non disclosure below 20k should be there.

Its not the end but its a beginning is my personal take still.
Supporting links:
http://www.hindustantimes.com/business-news/rbi-withdraws-rs-5000-old-note-deposit-restriction-for-kyc-compliant-accounts/story-my3Xd4XZo0nn86kjlTaUDP.html
http://www.businesstoday.in/current/economy-politics/post-demonetisation-it-detects-rs-3185-cr-black-income-and-seizes-rs-86-crore-new-notes/story/242699.html

Book Review_Corporate Chanakya

A good book to read...
Our own management Guru Chanakya's thoughts blended with day to day examples makes it very much relevant.
Simple changes to the working style can lead to good results.
Chanakya was master politician and the more I am getting to know, I am much more interested to read his own work.

Some of the interesting quotes:

So many people imagine themselves to be hard-working, sincere and ‘active’ — without understanding whether this is a fact, or a figment of their imagination. You do not become active if you are just running around and working

It is only a good student who will become a good teacher. After all, only a good subordinate will ultimately become a good boss


Most of the external threats to organisations stem from ‘internal’ insecurities felt by their own people

A golden rule in business is, think twice before you speak. Even a tailor is advised during his apprenticeship, “Measure twice, but cut once

Business is not a one-time deal, but a collection of deals over a period of time which makes the business successful. Hence, understanding the requirements of people around you is a continuous process

There are three ways of getting work done from your subordinates — instigation, motivation, and inspiration. Instigation is the way terrorists are made to work. Motivation involves incentives and promotions, whereas inspiration comes from within the self, which is eternal and everlasting

Demonetisation & Me

मैं और demonetisation अक्सर ये बाते करते हैं

की अगर तुम ना होते तो ऐसा होता

अगर तुम ना होते तो वैसा होता  

I was playing baddy when I came to know about this move of “Demonetisation” and since then this has remained a buzz word for me.  I missed the opportunity to listen to PM at 2000 hrs but was instantaneously convinced by this idea.

Though I was supporting the idea but had a situation to manage as a function was planned on 13^th with estimated expense of 30 K. I had no cash available and  could not see any source to arrange new currency in 5 days. But thanks to the caterer and the decorator, who were considerate enough to provide me credit period of 10 days, by then I managed some cash and rest was transferred online. Snehal endured 3 hours long que to get cash on 10^th or 11^th day and it was definitely not easy for her.

Despite experiencing trouble myself and seeing many other issues arising out of demonetisation, I will still on board. Many will call it as a “Bhakt-Syndrome” or “Blind following” etc, but to me it was simply an interesting game changing attempt by CEO of India Inc. I liked it mostly because I felt it was a curious business decision to take-on the rivals with a surprise. Certainly a-lot of things were put at risk by PM and only time will prove how much premium he gets as a return.

As mentioned by PM, it is an attempt to counter “Black money” but there are many other benefits of the move kept mostly as a back up or Plan B (one can not open all his cards at the beginning itself and this ambiguity is a key for such decisions). The other benefits as per me could be /are

                          a)   Ruling out fake currency

                 b)  Make accumulated funds of Naxlites and terrorists worthless

                           c)  Push for cashless

               d)  Financial gain due to wind fall gain for RBI

                e) Revoking of BPL status for many

                f) Infusion of liquidity to the Banks

On the 31^st day of demonetisation drive a,b,c,e & f of the above have been accomplished while d appears to be failing miserably and black money also has not been realised to a great extent. But this is still a early judgment as IT scrutiny of the accounts and the raids are continuing. Unless and until the complete balance sheet is settled , it is not right to stamp “Demonetisation” as failure or success.

But there were few other gains too 

                     a)  Opening of Jan Dhan accounts for Tea workers ~ 20 lac, 

                                 these were not opened in the mass drive.

                                               b)  Activation and utilisation of idle Jan dhan accounts

                                               c)  Reduction in Stone pelting incidences in J&K.

There are few or many more like this which can’t be monetised to gauge the benefits.

Now coming to the pain or hardship part of the decision, yes I do sympathies with those who have suffered and agree that it was at no fault of theirs. But as mentioned above it is a part of a decision.

Each decision has its pro’s and con’s, hence this step can’t be any different. GOI was made to put on a very slippery turf and they were reacting to the situation to best of their abilities.

Could it have been better?

Yes there is always a better way for everything but its easy to say this in hindsight. Response was fast and innovative too.

a)      Cash withdrawal from petrol pumps/ big bazaar

b)      Wedding card based additional money withdrawal

c)       Seeds for Farmers with old notes

These were evolving as per the realized needs and to offer ease to maximum junta and now it can be claimed that it would have been done in a better way.

One never fails; he either wins or learns in any of the endeavors...

My prediction is that even after 30^th Dec, there will be restriction on the cash transaction and it will be pushed for cashless transactions.

No doubt GDP will shrink for a quarter or so but this will bounce back soon.

Note: I have deliberately not touched the sad demises of people due to hassles of demonetisation, full sympathy with them and their families.