Skip to main content

'When people are suffering, how can you call it a good cause?' -- C H Venkatachalam, GS, AIBEA

An interesting interview with CH Venkatachalam, General Secretary of All India Bank Employee Association (AIBEA) on the issue of Demonetisation. Though a couple of days old, this could not have been missed. He says in a response to a question:

What do you think is the rationale behind bringing in a denomination higher than Rs 1,000?

It is illogical. Removing Rs 500 and Rs 1,000 notes and bringing in Rs 2,000 notes does not make sense at all. It is easier to hoard again.

Black money transactions are always done in higher denomination. Now, people will accumulate the Rs 2,000 notes.

Why do you have to come out with a Rs 2,000 note when you are demonetising higher currencies?....

What is really the interesting pat here is the absence of mentioning purchasing power of the Rupee if higher denominations were junked. It should be noted that the purchasing power of the rupee had gone down considerably since 1978, when high value notes were junked. The value of Rs 1,000 in 1998, compared to the movement of the Consumer Price Index (CPI) taking 1982 as the base year, was only Rs 160. This meant the average consumer now needed notes of a higher face value for normal cash transactions. This and taking into account the fact that other methods of payment were yet to take root was why the government had, in the public interest, re-introduced the Rs 1,000 note during the AB Vajpayee regime. Maybe, the same logic has been applied here in releasing INR 2000 currency note.


Popular posts from this blog

GST – Impact on Small Industry and the Informal Sector

The Goods and Services Tax (GST), that came into effect on 1st July, 2017, has been lauded as the most comprehensive contemporary reform of Indian indirect taxation. Aimed at creating a common, unified and integrated domestic market, allowing the free flow of goods and services across state lines, GST is supposed to deliver Indian industry and thereby the economy the competitive edge apparently lacking till now.
Reality is however a far cry from the picture painted by government. GST by creating platform a conducive to economies of scale and nullifying regional tariffs, is both conceptually and practically advantageous to big business and detrimental to the informal sector and small businesses.
These groupings, informal and small, though quite different have some degree of overlap. Informal business is overwhelmingly small but not all small businesses are informal. GST’s impact on these groups is quite different both with regard to extent of impact or in terms of results sought.
Small Bu…

Report release and Panel discussion. “Unfolding Crisis – The Case of Rising NPAs and Sinking Public Accountability” at Constitution Club of India in New Delhi at 3:00 p.m. on 14th September, 2016

Public Finance Public Accountability Collective (PFPAC)
cordially invites you to attend the formal release of its first publication 
Unfolding Crisis – The Case of Rising NPAs and Sinking Public Accountability” 
Constitution Club of India in New Delhi at 3:00 p.m. on 14th September, 2016

Additionally, PFPAC will be organising a panel discussion to analyse the intricacies of Non-Performing Assets (NPAs) with a panel consisting of notable people from across the social, political, economic and financial spectrum:
•Mr. C.H. Venkatachalam – General Secretary of the All India Bank Employees Association (AIBEA)
•Dr. C.P. Chandrasekhar – Professor at the Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University
•Dr. Indira Rajaraman – Former Member of the 13th Finance Commission; Former Professor at Indian Institute of Management (Bangalore); and Former Member of Central Board of Directors, Reserve Bank of India
•Dr. Mohan Guruswamy –Chairman, Centre for Pol…

Data Governance, FinTech, #Blockchain and Audits

Data Governance and Audit Trail Data Governance specifies the framework for decision rights and accountabilities encouraging desirable behavior in data usage Main aim of Data Governance is to ensure that data asset are overseen in a cohesive and consistent enterprise-wide manner Why is there a need for Data governance?  Evolving regulatory mechanisms and requirements Could integrity of data be trusted? Centralized versus decentralized documentation as regards use, hermeneutics and meaning of data Multiplicity of data silos with exponentially rising data Architecture Information Owner: approving power towards internal + external data transfers + business plans prioritizing data integrity and data governance Data steward: create/maintain/define data access, data mapping and data aggregation rules Application steward: maintain application inventory, validating testing of outbound data and assist master data management Analytics steward: maintain a solutions inventory, reduce redundant solu…