RBI rolls back norms for deposit of old notes by KYC customers

Mumbai, Dec 21 (PTI) Under all-round attack, the Reserve Bank on Wednesday did a U-turn on customers depositing demonetised notes over Rs 5,000 till December 30 by making it clear that there will be no questions asked either in case of one-time or repeat deposits if the accounts are KYC-compliant.

Such customers will also not be questioned by bank officials on why they had failed to deposit the old notes earlier.

The RBI turnaround came as Finance Minister Arun Jaitley's assurance on Monday night and yesterday that there will be no questions asked to customers who would make one-time deposit above Rs 5,000 failed to persuade bank officials who insisted that there should be fresh circular from RBI so that customers will not be harassed.

However, customers with non-KYC accounts will be subject to stiff conditions imposed by RBI on December 19 for deposit of junked notes.

The decision follows widespread criticism of the guidelines, with people saying the Prime Minister as well as the finance minister have asked people not to throng the banks as they have time till December 30 to deposit invalid notes in their accounts.

On review of the guidelines, RBI decided to modify the old currency deposit rules for fully-KYC compliant customers, an RBI notification said Wednesday.

The December 19 notification of RBI had said tenders of old currency 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 credit in such cases shall be afforded only after questioning tenderer, on record, in 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," it had said.

Replying to queries on curbs on deposit of old currency notes by RBI, Finance Minister Arun Jaitley yesterday had said people should go and deposit the now-defunct notes at one go as repeat deposits raise doubt.

"Today, there are no exemptions... Now, there is no further scope of earning old currency. So, those who have got old currency must go and deposit at one go," he had said.

"Therefore, if somebody goes everyday and deposit old currency, it raises suspicion. How is he getting everyday? As long as exemptions existed, there was scope for getting old currency. But once the exemptions have been lifted, if you have old currency, go and deposit at one go.

Govt plans threshold for parties to enjoy tax exemption: FM

New Delhi, Dec 20 (PTI) Government plans to set a threshold criteria for political parties to enjoy tax exemptions to check money laundering by outfits that do not contest elections, Finance Minister Arun Jaitley said today.

He said the Revenue Secretary has been asked to look into the issue in the wake of Election Commission's recommendations in this regard.

Jaitley's remarks at a Times Now event assume significance in the context of the Election Commission's recommendations to the Government to amend laws to bar tax exemption to parties that do not contest elections and win seats in Lok Sabha and Assembly polls and to ban anonymous donations above Rs 2,000 to political parties.

"I can point out one is invisible donation which Election Commission says is anonymous and the second is when political parties got exemptions. There are about 40/50/60 political parties which effectively contest elections in Centre and the states, (but) you have a large number of political parties which got registered not for contesting election but for availing tax exemption.

"Now this part is easier to tackle. I have already asked the Revenue Secretary to look into this and therefore we will have to put a threshold criteria so that we are able to eliminate those which are not real political parties but only for money conversion which have come in," Jaitley said.

He said many political parties do not contest elections but only accept donations and convert money.

"I have already told the Revenue Department to look at them and therefore some threshold criteria could be fixed and number of these could be eliminated," Jaitley added.

India seal 4-0 win over England as Jadeja takes 7/48

Chennai, Dec 20 (PTI) India pulled the curtains down on England's winter of discontent in the manner befitting their dominance as the hosts clinched the five-match series 4-0 with an innings and 75-run victory in the fifth and final cricket Test here today.

Spinner Ravindra Jadeja was the hero of the day as he returned exceptional figures of 7/48 to spell doom for England.

Jadeja's effort deserves special mention as he shone on a pitch where there were no demons. However, triple-centurion Karun Nair walked away with the Man of the Match award for his unbeaten 303-run knock that set the tone for the victory.

In the process of winning their ninth match of the year to stretch an unbeaten run to 18, the hosts wrote and rewrote a plethora of records, including notching up their biggest-ever series victory over England.

Their previous best was the 3-0 verdict under Mohammed Azharuddin's captaincy in 1992-93.

Having made a sedate start to the day, England made a hash of it after tea as they lost their last six wickets for a mere 15 runs.

England were staring down the barrel at 200 for eight, with Jadeja doing the bulk of damage in an exceptional display of slow bowling on a pitch that was one of the flattest in recent times.

The left-arm spinner, who also pulled off a brilliant catch earlier in the day, triggered the English slide when he lured Moeen Ali into playing a casual shot after the tea break.

From 192 for four, the scoreline suddenly read 200 for eight, with plenty of overs left for Indian bowlers to wrap up the tail.

It soon became 207 for nine as the inevitable dawned on England and the end came when the last line of defence, Jake Ball, was foxed by Jadeja for a three-ball duck.

Celebration erupted in the stands at the M A Chidambaram Stadium, and the Indian players also broke into wild celebrations following the team's fifth successive Test series win since September last year. The win also made it India's longest unbeaten run in Test cricket, surpassing the previous best of 17 wins between 198-87.

In front of the plenty of heads totting the stands, the Indian players went on a lap of honour.

A pall of gloom, however, descended on the English camp, while the Indians' joy knew no bounds.

Daman & Diu becomes India's 1st cashless region

New Delhi, Dec 20 (PTI) The tiny Union Territory along the Arabian Sea coast, Daman and Diu, has become the first cashless region of the country.

Minister of State for Home Hansraj Gangaram Ahir has commended the UT administration for taking the initiative to make Daman and Diu as the first cashless region of the country.

During a recent visit to the Union Territory, Ahir lauded the painstaking efforts of the UT administration in successfully making Daman and Diu a cashless region.

At least 190 teams of trained volunteers visited over 25,000 households spread across the UT to educate their members about the benefits of cashless transactions, an official statement said.

The administration has introduced free Wi-fi services in the Union Territory recently and 3,500 GB Data was used by over 32,000 tourists and local people during the last 45 days.

This initiative was appreciated by Ahir as it will help in promoting the government's initiative of Digital India and e-transactions.

Ahir reviewed the developmental projects in Daman and Diu and also inaugurated the coastal police station at Kadaiya.

He directed the officials to expedite work on setting up the coastal police station at Diu.

Ahir called upon the UT administration to fill up the vacancies immediately so that the coastal police station can operate at its full capacity at the earliest.

The Minister also inaugurated a function to commemorate the 56th Liberation Day of Daman and Diu on December 17, 2016.

Speaking on the occasion, Ahir said the UT has an immense tourist potential and hoped the tourism sector will emerge as a major revenue source with the slew of initiatives undertaken by the UT administration, the release said.

A Staff Recruitment Board has also been constituted recently for bringing transparency in the Administration and to check corrupt practices.

In the social development sector, infrastructure in all primary schools is being upgraded under the 'Jan Bhagidari' scheme of the UT administration.

India strongly condemns murder of Russian Ambassador to Turkey

New Delhi, Dec 20 (PTI) India on Tuesday condemned the assassination of Russian ambassador to Turkey Andrei Karlov, saying it was shocked by the dastardly act and that there can never be any justification for terrorism

"India strongly condemns the tragic assassination of the Ambassador of the Russian Federation to Turkey. We are deeply saddened and shocked by this dastardly act," the External Affairs Ministry said

Karlov was shot dead by a Turkish gunman at an art exhibition in Ankara last evening

"We offer our condolences to the family of Ambassador Andrey Karlov and share their pain and grief. There can never be any justification for violence and terrorism," the MEA said in a statement

The gunman shouted "God is great!" and "don't forget Aleppo, don't forget Syria", after killing the envoy.

Trump condemns attacks, vows to eradicate terrorists
Washington, Dec 20 (PTI) US President-elect Donald Trump today vowed to eradicate ISIS and other Islamist terrorists from the face of the earth after chilling attacks in Turkey, Germany and Switzerland.

"Today we offer our condolences to the family and loved ones of Russian Ambassador to Turkey Andrei Karlov, who was assassinated by a radical Islamic terrorist," Trump said in a statement.
"The murder of an ambassador is a violation of all rules of civilised order and must be universally condemned," he said.
Condemning the Berlin attack, the 70-year-old President- elect said: "Our hearts and prayers are with the loved ones of the victims of today's horrifying terror attack in Berlin.

Innocent civilians were murdered in the streets as they prepared to celebrate the Christmas holiday."

A lorry ploughed into a busy Christmas market in central Berlin yesterday, killing several people and injuring over 50 in what police said was a possible terror attack.

"ISIS and other Islamist terrorists continually slaughter Christians in their communities and places of worship as part of their global jihad. These terrorists and their regional and worldwide networks must be eradicated from the face of the earth, a mission we will carry out with all freedom-loving partners," Trump said.

In a tweet, Trump said, in view of the terrorist attack yesterday the civilised world must change its thinking.

"Today there were terror attacks in Turkey, Switzerland and Germany - and it is only getting worse. The civilised world must change thinking," he wrote.

In Switzerland, a man burst into a Muslim prayer hall, shooting and wounding three men. The attacker was later found dead.

Meanwhile, President Barack Obama, who is on a vacation in Hawaii, was briefed about the assassination of the Russian envoy by his national security aide, the White House said.

"This morning the President was briefed by his National Security Team on the assassination of the Russian Ambassador to Turkey in Ankara today. The President directed his team to provide updates as warranted," White House Deputy Press Secretary Eric Schultz said.

Earlier in a statement, US Secretary of State John Kerry condemned the assassination of Russian Ambassador and offered all American help in the investigation into the tragic incident.

"The US condemns the assassination today in Ankara of Russian Ambassador Andrey Karlov. Our thoughts and prayers are with his loved ones, the Russian people, and with the other victims who were injured in this shooting," Kerry said.

"We stand ready to offer assistance to Russia and Turkey as they investigate this despicable attack, which was also an assault on the right of all diplomats to safely and securely advance and represent their nations around the world," he added.

UN chief condemns Russian envoy's murder as 'senseless act'

United Nations, Dec 20 (AFP) UN Secretary-General Ban Ki-moon has condemned the murder of the Russian ambassador in Turkey, saying he was "appalled by this senseless act of terror."

Ambassador Andrei Karlov was shot dead while attending an art exhibition in Ankara by a Turkish policeman who shouted "Don't forget Aleppo" and "Allahu akbar" (God is great).

Ban is "appalled by this senseless act of terror and emphasizes that there can be no justification for the targeting of diplomatic personnel and civilians," said a statement from his spokesman yesterday.

"The secretary-general is following the unfolding situation closely and wishes the other people who were reportedly injured in the attack a speedy and full recovery."

The UN Security Council will today observe a minute of silence to pay tribute to the Russian diplomat, said Spanish Ambassador Roman Oyarzun, the current council president.

The council was preparing a formal statement condemning the attack.

Venezuela's Ambassador Rafael Ramirez denounced what he termed as a "campaign of hatred" against Russia, in reference to mounting criticism from Western powers of Moscow's role in Syria.

"Everything that is said, everything that is done in a situation which is so fraught with extremist actions, such as the situation in Syria, it does have, unfortunately, consequences," said Ramirez.

PM congratulates Indian Cricketer Karun Nair, on scoring triple-century in the Test Cricket

The Prime Minister, Shri Narendra Modi has congratulated Indian Cricketer Karun Nair, on scoring triple-century in the Test Cricket. 

"Congratulations on the historic triple century Karun Nair! We all are delighted and proud of your remarkable feat", the Prime Minister said.

Sports Minister Vijay Goel Congratulates Karun Nair on his Maiden Triple Century in Test Cricket 

Minister of Youth Affairs and Sports Shri Vijay Goel has congratulated Cricketer Karun Nair on his maiden triple Century in Test Cricket.
“Wow! You have made all of us proud by your grit and determination. Keep it on.” The Minister said in a message to Karun Nair.

Trump tells Michelle Obama US now has hope

Mobile, Dec 18 (AFP) President-elect Donald Trump has insisted that America was full of hope since his election, shrugging off First Lady Michelle Obama's remarks suggesting otherwise.

"We have tremendous hope, and we have tremendous promise and tremendous potential," Trump told a rally in Mobile, Alabama, the final stop on his "thank you" tour.

"We are going to be so successful as a country again. We are going to be amazing," the 70-year-old Republican billionaire said.

In excerpts of an interview released Friday, Michelle Obama told talkshow host Oprah Winfrey that she had concerns about America's future following the bitterly fought November election that pitted Trump against Democrat Hillary Clinton.

"We feel the difference now," Obama said.

"See, now we're feeling what not having hope feels like.

You know? Hope is necessary. It's a necessary concept." 

Without naming Trump she also referred to how important it is to have "a grownup in the White House who can say to you in times of crisis and turmoil, 'Hey, it's going to be okay.'" 

Trump promised change of his own.

"You watch. It's going to be so special. Things are going to happen like you haven't seen happen in many, many decades," he insisted.

But the first lady indicated she has been sensing a bleak mood.

"What do you give your kids if you can't give them hope?" she asked.

The president-elect, known for lashing out when criticized, seemed to backpedal a bit after initially criticizing the first lady, suggesting she "meant that statement in a different way than it came out." 

He was even complimentary.

"She could not have been nicer," Trump said of the first lady, whom he met with her husband following the November 8 election.

Clarification of Status of Political Parties under Income Tax Act, 1961

There have been some newspaper reports which seem to wrongly suggest that there cannot be any scrutiny of Income-tax returns of political parties registered with the Election Commission in the context of deposits of old currency notes.  This inference seems to have been drawn because of the fact that the income of the political parties is exempt from Income - Tax under Section 13A. 

In this context, the following clarifications need to be kept in mind :

(i)           The exemption from Income-Tax is given to only registered  political parties subject to certain conditions, which are mentioned in Section 13A, which includes keeping and maintaining books of accounts and other documents as would enable the Assessing Officer to deduce its income therefrom;

(ii)         In respect of each voluntary contribution in excess of Rs. 20000, the political party will have to maintain a record of such contributions along with the name and address of such person who has made such contribution;

(iii)       The accounts of each such political party is to be audited  by a Chartered Accountant; and

(iv)       The political party has to submit a report to the Election Commission about the donations received within a timeframe prescribed.

There are enough provisions in the Income Tax Act to scrutinise the accounts of the political parties and these political parties are also subject to other provisions of Income-Tax, including filing of return.

(source : Ministry of Finance)

Jaitley hints not all scrapped currency will be remonetised

New Delhi, Dec 17 (PTI) Finance Minister Arun Jaitley on Saturday hinted that not all of the Rs 15.44 lakh crore worth of currency junked will be remonetised through issuance of new notes as he said digital currency will fill the gap.

Calling the scrapping of old 500 and 1,000 rupee notes as "a courageous step", he said the government could do it as India today has the capacity to take such decisions and experiment boldly.

The move will create a new Indian normal as the one that existed for the past seven decades is "unacceptable", he said, adding that demonetisation will help rid the economy of high cash circulation that had led to tax evasion, blackmoney and currency being used for crime.

"One of the efforts of this exercise has to be that even though a reduced cash currency could remain, our conscious effort... (is) to supplement the rest with a digital currency," he said while addressing annual general meeting of industry chamber FICCI here.

As many as 17,165 million pieces of Rs 500 denomination and 6,858 million pieces of Rs 1,000 banknotes were in circulation on November 8 when the government made the surprise announcement.

Jaitley further said: "The whole process of remonetisation is not going to take very long time and I'm sure very soon the Reserve Bank by injecting currency daily into the banking and postal system will be able to complete that."

Also, the push to use the digital mode to make payments has been gaining ground. "The manner it has taken place in the last five weeks is indeed commendable. Only a section of Parliament seems unaware of what is happening," he said.

Once the remonetisation process is complete, it will mark "the creation of a new Indian normal because the normal that existed for 70 years is an unacceptable normal," he added.

"The 70-year normal had become a way of life for almost every Indian. It was not merely a fact that you had a lot more cash currency, far larger cash currency as part of your GDP...

the economic and social consequences of that are extremely adverse."

He made a point that dealing in that cash currency had led to a lot of aberrations in terms of tax non-compliance, currency being used for collateral purposes like crime, escaping the tax net and not getting into the banking system.

Russia behind cyberattacks during polls: Obama

Washington, Dec 17 (PTI) President Barack Obama has alleged that Russia possibly under President Vladimir Putin's directions carried out cyberattacks during the US polls, as he urged his successor Donald Trump to ensure that the American election process is not under potential "foreign influence".

"What I can tell you is that the intelligence that I've seen gives me great confidence in their assessment that the Russians carried out this hack. Not much happens in Russia without Vladimir Putin," Obama told reporters during a White House news conference, indicating Putin's involvement.

"They hacked into some Democratic Party e-mails that contained pretty routine stuff, some of it embarrassing or uncomfortable because I suspect that if any of us got our emails hacked into there might be some things that we would not want suddenly appearing on the front page of a newspaper or a telecast, even if there was not anything particularly illegal or controversial about it," he said yesterday.

A worried Obama also lashed out at Russia for its alleged effort to influence the US election, saying the country does not produce anything and lacks innovation.

"We've got to think what is happening to our political culture here. The Russians can't change us or significantly weaken us. They are a smaller country, they are a weaker country, their economy doesn't produce anything that anybody wants to buy except oil and gas and arms. They don't innovate," Obama said.

Obama assured Americans that the ballot itself was not rigged and promised to "send a clear message to Russia or others not to do this to us, because we can do stuff to you." 

"But they can impact us if we lose track of who we are.

They can impact us if we abandon our values. Putin can weaken us just like he's trying to weaken Europe if we start buying into notions that it's OK to intimidate the press, or lock up dissidents, or discriminate against people because of their faith or what they look like," he said.

Terming it a "pretty hierarchical operation", Obama said there was not a lot of debate and democratic deliberation, particularly when it comes to policies directed at the US.

"We have said and I will confirm that this happened at the highest levels of the Russian government and I will let you make that determination as to whether there are high-level Russian officials who go off rogue and decide to tamper with the US election process without Vladimir Putin knowing about it," he said.

Obama said he had raised the issue when he met Putin recently in China.

Obama also hopedhis successor Donald Trump will show equal concern to ensure that the American election process is not under a potential "foreign influence".

"My hope is that the president-elect is going to similarly be concerned with making sure that we don't have a potential foreign influence in our election process. I don't think any American wants that. And that shouldn't be a source of an argument," Obama said.

The US President also called for bipartisan unity on the issue.