Whispers Forum

The three pillars of the economy namely new investment, investor sentiment, and consumer sentiment are going from bad to worse day by day. It seems India is entering a worse stage than 1991 if consumer's purchasing power and depleting foreign exchange reserves are taken into account in true spirits. The dispensation must fix this problem through RBI and other agencies guidance before it is too late. One way is to give chance to those who are holding cash as black money into banks, no questions asked for 6 months or one year, this way money will be in circulation legally, unless GoI has better options.
Harish Kumar

The Supreme Court has ratified and upheld all the clauses of Prevention of Money Laundering Act -PMLA which is as it should be as economic offences should be treated on par with treason. However, what is intriguing is that though it is named as the prevention of money laundering act, it has not been able to do that at all. Whatever action-raid, search, seizure, arrest, investigation, or trial are taking place after the event. The government will do well to address this issue-prevention. For a start, why not consider the following: 1. make it cumbersome and difficult to hoard so much cash by withdrawing 2000 and 500 rupee notes over a period of time and limit currency to 100 rupee notes. By restricting cash supply people will be forced to resort to bank transactions. 2. Put an expiry date-say three years on currency notes which will force hoarders to come to a bank sooner or later. These suggestions may sound simplistic but are surely worth a try rather than a protracted trial after the event and poor record of convictions. Will netas, babus, and businessmen -the largest perpetrators and beneficiaries of money laundering- bite the bullet?
Raghavan