KOZHIKODE Urjit Patel THURSDAY DECEMBER 8, 2016 PUSH FOR CASHLESS ECONOMY GETS STRONGER The RBI has relaxed authentication procedures for online transactions in a bid to speed up low-value payments `6.00 PAGES 16 CITY EDITION PAYMENTS UP TO L2,000 GET EASIER PENALTY FOR CASH PAYMENTS? Customers may now opt to do away with the two-factor authentication process while making online card transactions up to J2,000. However, they would first have to go through a one-time registration process requiring their card details and other information ■ ■ ■ The Niti Aayog has suggested that an additional charge be levied on cash transactions, claimed a Bloomberg report The think tank recommended incentives for those using digital modes of payment, the report added, quoting sources A new Paytm feature allows internet-free payments 11.55 lk cr VALUE OF DEMONETISED NOTES DEPOSITED SINCE NOVEMBER 8 CHENNAI ■ MADURAI ■ VIJAYAWADA ■ BENGALURU ■ KOCHI ■ HYDERABAD ■ VISAKHAPATNAM ■ COIMBATORE ■ KOZHIKODE ■ THIRUVANANTHAPURAM ■ BELAGAVI ■ BHUBANESWAR ■ SHIVAMOGGA ■ TIRUCHY ■ TIRUPATI Cautious RBI leaves rates unchanged In an unexpected move, the central bank left key rates unchanged at 6.25% disappointing many and crushing hopes of lower borrowing costs necessary to boost spending and investment in a post-demonetisation regime M R A J E N D R A N @ New Delhi Advani slams BJP leaders for LS limbo EXPRESS NEWS SERVICE @ New Delhi THE three-week-long logjam in Parliament seems to have tested the patience of the BJP’s eminence grise, L K Advani, who turned his exasperation on Lok Sabha Speaker Sumitra Mahajan and Parliamentary Affairs Minister Ananth Kumar today in a hot-mic like incident. With noisy protests again stalling the Lok Sabha today the 89-year MP expressed , distress over the way the proceedings were being conducted. Visibly agitated, Advani said, “Neither the speaker nor the Parliamentary Affairs Minister is running the House.” “I am going to tell the Speaker that she is not running the House. I am going to say it publicly Both sides are a party to . this,” Advani said as Kumar tried to pacify the senior parliamentarian. The minister pointed to the media gallery, apparently suggesting that his comments might be reported. As the House was adjourned, Advani asked a Lok Sabha official till what time the proceedings were adjourned. Told that it was till 2 pm, he snapped, “Why not sine die?” PARLIAMENT IN LIMBO: P7 IN an unexpected decision that surprised many the Reserve Bank , of India kept its key lending rate unchanged at 6.25 per cent on Wednesday. The decision disappointed many industry watchers and demolished hopes of lower borrowing cost necessary to revive spending and investment that took a beating after demonetisation of `500 and `1,000 notes. Though it did not say it in as many words, the central bank indicated several things by leaving the key rates unchanged. One, the need for a rate cut is not yet clear. Two, there is also no clarity on how much money would come in or go out of the system as people continue to deposit old and withdraw new currency notes. Three, the central bank is bracing for a spike in inflation by March 2017. Finally, the RBI feels it has done The central bank and government were conscious of certain immediate difficulties... all efforts were made to mitigate them Urjit Patel, RBI governor The decision of keeping the repo rate unchanged was a little surprising given that there has been sizeable demand destruction Arundhati Bhattacharya, SBI chairperson IMPACT ON CUSTOMERS Banks may lower interest rates, but yield on deposits may fall too Interest on small savings schemes may also fall. Cash savings may be unattractive for a short while Fresh loans may slow down, until currency crunch is sorted out Mid-segment housing demand will remain strong as salaried class mostly depend on housing loans for purchases enough and hopes that bankers would have a relook at their assets and pass on the benefits to consumers in the form of lower interest rates on loans. While the central bank has cut the repo rate six times since January 2015, it a few external concerns this time. The US central bank may hike its key rates soon, which could have an impact on emerging markets, including In- dia. Also recently, the OPEC nations decided to cut the production of crude oil, which again could cause petrol prices to rise, thereby impacting inflation. A few leading bankers told Express, that the banks despite the central bank’s decision to retain repo rate, could cut the interest rates on specific loans given to consumers. “Expect lower interest rate announcements in the New Year, may be even earlier. The system cannot be allowed to heat up,” said a senior official in Corporation Bank. “With regard to liquidity and interest rates, the withdrawal of the incremental CRR requirement and the use of other instruments such as the MSS to manage liquidity is welcome,” Chanda Kochhar, CEO, ICICI Bank said. “This will help the banks to drop lending rates, thereby giving the economy , a much-needed breather.” Reddy laundered `100 cr for wedding: suicide note EXPRESS NEWS SERVICE @ Bengaluru MINING baron and former minister Gali Janardhana Reddy allegedly laundered `100 crore ahead of his daughter’s mega wedding, the driver of a Karnataka Administrative Service (KAS) official has claimed in his suicide note. Ramesh KC, official driver of Bheema Nayak, a special land acquisition officer from Bengaluru, committed suicide by consuming poison in Mandya district, on Tuesday. The handwritten note recovered from the lodge claimed that Nayak helped Reddy convert the unaccounted money into white for a whopping 20 per cent commission. Ramesh alleged that he was ending his life after receiving regular death threats from Nayak over the issue. He claimed that Nayak, along with his personal driver Mohammed, were hounding him. “These two are directly responsible for my death. They also withheld my salary for the past three months,” the suicide note read. The note listed out 19 transactions allegedly carried out by the KAS official. The last two points detailed Nayak’s alleged role in illegal conversion of demonetised notes. It alleged that on November 15 this year, Nayak gave `25 crore for Reddy’s daughter’s wedding after meeting the mining baron’s aide and BJP MP B Sriramulu. What concerns the central bank ● Prices of perishables could fall further due to abrupt compression in consumption fuelled by withdrawal of old C500 and C1,000 notes ● However, going forward, this could reverse and inflation could spike ● With OPEC deciding to cut production, crude prices might firm up in coming months ● US monetary and fiscal policy could impart volatility to exchange rate, feeding into inflation ● Headline inflation is projected at 5% in fourth-quarter of 201617, with risks tilted upside No windfall profits from demonetisation ● When demonetisa tion was announced, the government said C14.5 lakh crore worth old currency was in the system. ● Officials expected C12 lakh crore of that money to return. ● It meant that at least C2.5 lakh crore, assumed to be black currency, would never return to banks ● The narrative changed as RBI officials said that C12 lakh crore of demonetised notes have returned to banks. It seems all banned notes will flow back to banks. Dawood Mohamed Vaid, founder of Burooj Realization, along with other accused persons displaying a banner inviting children in the age group of 5-13 years to attend Islamic classes CHILLING CONFESSION “Yes, we planned to radicalise children’’ A R U N M / P R A M D A S @ Kochi ‘CATCH THEM YOUNG’ was the strategy of Navi Mumbai-based Burooj Realization, an Islamic educational organisation, whose key operators were arrested by the Kochi City Police for propagating radical religious ideologies on December 2. The organisation had provided the controversial textbooks to Peace International School in Kochi, which allegedly taugh objectionable content to students. The three persons - Dawood Mohamed Vaid, 38, Sameed Ahammed Sheikh, 31 and Sahil Hameed Sayed, 28 - have confessed to the investigators that their aim was to radicalise children in the age group of 5-13 years. The group realised that children are more susceptible to radicalisation as it is easy to instil the ideology in young minds. The photo of the accused displaying a banner itself reveals the strategy devised by the accused who prepared the curriculum for their propaganda. It is learnt that the investigators have received concrete evidence regarding the intention of the publishers who introduced the controversial textbooks. The Burooj Realization has distributed the text books to 13 schools in the state, all run by Peace Foundation, headed by M M Akbar, according to the investigators. The group identified kids as soft targets for radicalisation and announced a slew of offers ranging from snacks to certificates. After the arrest of Dawood Vaid, Sahil Sayed and Shaik Sameed Ahmed, it is learnt that Burooj Realization has withdrawn the textbooks distributed to schools across the country “They con. fessed that there were errors in the text books for Class II students and claimed that corrected books will be distributed from the next aca● More on P6 demic year”, said an officer. ‘Jaya was cooperative, would even play with us’ MHA shows no charity, cuts 20 NGOs’ licence IN THE DOCK CRACKDOWN ON NGOS SUSHMITHA RAMAKRISHNAN @ Chennai “PEOPLE call her an iron lady. But what we saw in these 75 days was her soft, caring side,” says CV Sheela, one of the 16 nurses who cared for the late Chief Minister J Jayalalithaa at Apollo Hospitals. “She loved upma; upma, pongal, curd rice and potato curry were her favourite dishes. With each spoon of food, she would say ‘I will eat this morsel for Sheela’, ‘this one for Saamu’, and each subsequent spoonful for yet another nurse in the room. She motivated herself and us with simple words like these.” Among the nurses, Jayalalithaa lovingly referred to her favourite three — CV Sheela, MV Renuka and Samundeeshwari — as the ‘King Kongs’. “After being moved to the general ward, she would watch TV for an hour every day and listen to old Tamil B50,944 cr Foreign fund received by NGOs in India in the last 3 years Officials at the spot where Jaya was laid to rest | ASHWIN PRASATH songs with us. She was moved when she saw on TV that thousands of people were praying for her,” says Renuka. Chief nursing superintendent Suneetha R says, the nurses were moved by Jayalalithaa’s trust in them. “She would play with us, in accordance with the physiotherapists’ instructions. Even when she wasn’t fond of her exercises, she wouldn’t refuse them, but say ‘I’m tired, can we , do this later?’” 33,091 NGOs registered under FCRA B2,348.4 cr Foreign fund received by NGOs in Kerala in 2014-15 B45.19 cr Foreign fund received by NGOs in Kerala in 2015-16 A J AY K A N T H @ Kozhikode AMIDST allegations of muzzling non-governmental organisations (NGO) by blocking foreign funding, the Union Ministry of Home Affairs (MHA) has cancelled the licence of over 20 NGOs in Kerala under the Foreign Contribution Regulation Act (FCRA), 2010. The MHA launched a crackdown on NGOs alleging failure to meet legal requirements as they failed to meet the June 30 deadline to apply for FCRA renewal. In the last couple of months, enforcement agencies have been tracking the activities of various NGOs following intelligence inputs that a few of them are diverting funds for anti-national and illegal activities. As per a report published by MHA, the licences of 11,319 NGOs, including around 20 in Kerala, were cancelled with effect from November 1, 2016. The NGOs in Kerala which lost their licence in- cluded Kerala Educational Development and Employment Society , Kerala Blind School Society, The Kerala Muslim Educational Association, Kerala Council for Historical Research, Palghat Mujaheedin AC Committee and Kerala United Theological Seminary “The MHA had directed the . NGOs to submit detailed account statements. But many of them have failed to submit the required documents while a few did not comply with the statutory rules,” said an intelligence official. The MHA had directed the NGOs concerned to submit requisite documents by February 28, 2017. According to the latest data released by the MHA, flow of foreign funds to NGOs in Kerala has dried up to `45.19 crore in 2015-16 fiscal compared to a whopping `2,348.4 crore in 2014-15. The enforcement agencies have been able to regulate the flow of funds after strengthening surveillance. Only 20 organisations were able to get foreign fund of `1 crore or above during 2015-16 while 244 NGOs received `1 crore in 2014-15 fiscal. As many as 213 NGOs got funds above `1 crore in 2013-14, while 191 organisations were in the list in 2012-13. Soft targets Burooj Realization identified kids as soft targets for radicalisation and announced a slew of offers ranging from snacks to certificates. After the arrest of Dawood Vaid, Sahil Sayed and Shaik Sameed Ahmed Burooj Realization has withdrawn the textbooks. They confessed that there were errors in the text books prepared for Class II students and claimed that a revised edition of books will be distributed from the next academic year. A police officer EXPRESS READ Cho Ramaswamy passes away Chennai: Veteran journalist, former Rajya Sabha Member, political commentator and satirist Cho Ramaswamy passed away early on Wednesday morning at a private hospital. The 82-year-old, is survived by his wife, son and daughter. His Thuglak magazine was known for its stand on issues like freedom of expression. SERC proposes power tariff hike AMIT BANDRE T’Puram : The State Electricity Regulatory Commission has issued recommendations for hiking power tariffs in the state for the 2016-17 and 2017-18 financial years. The commission, headed by T M Manoharan, has proposed a hike for the domestic category in the range of 10 paise to 50 paise per unit. P4
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