Saturday, May 20, 2017

Request to amend Section 13 A of Income Tax Act to bring transparency on political donations.

A7/303, Saket CHSL, Saket Marg, Thane (W) 400601. # 8879528575.

December 25, 2016

The Hon. Finance Minister,
Government of India,
North Block, 
New Delhi.

Sub: Request to amend Section 13 A of Income Tax Act to bring transparency on political donations.

Respected Sir,

Elections and the conduct of the legislature in India is governed under the Representation of the People Act, 1951, which empowers the Election Commission of India (ECI) to form rules for elections and political parties.

As per current rules, political parties in India are barred from undertaking any commercial activity and thus they are not deemed to be engaged in acts that make them liable to pay any income tax.

Political parties are getting away with hundreds of crores...year after anonymous donations.

Much of it in cash, which the parties can deposit in a bank account without scrutiny.

Since demonetization, every day brings new announcements about how one and all honest, tax-paying Indians must adhere to the new rules and regulations regarding our own money. For the record, a time of writing this, the Reserve Bank of India has come up with 59 orders since November 10, 2016.

To their credit, people have borne it all with admirable patience.
They stood in queues for hours every day.
They felt awful as they dipped into their kids' piggy banks to meet contingencies.
They took it on the chin...for ‘nation building'.

That's because Prime Minister Modi's fight against black money, call it demonetization or notebandi, was to catch the big crooks. It's a good fight...and people were just doing their part. After all, the goal is to quash the black economy once and for all.

But in the fight against black money, a key beneficiary has been left out...the 1,866 political parties.

Yes, the fight against black money has conveniently side stepped the political parties. They enjoy privileges that the common man doesn't.  It's a biased war...and people are fighting it on behalf of often corrupt political entities.

Here's proof...

Quote of Revenue Secretary: If it is a deposit in the account of a political party, they are exempt. But if it is deposited in individual's account, then that information will come into our radar.
- Hasmukh Adhia, Revenue Secretary, Government of India.

So, this is official policy for the 1,866 political parties. This is the law of the land...Section 13A of the Income Tax Act, 1961, to be precise.

A common man has to stand in a queue...and prove he is legitimate by showing a PAN Card or some other identification. And if and when the Income Tax sleuths show up, he needs to explain every deposit he made in great detail.

The political parties, on the other hand, get a free pass.

Political parties are currently not required to publicly disclose contributions of up to Rs 20,000. This means that any political party that receives individual donations of up to Rs 20,000 in cash can deposit it in bank accounts. This money will not be investigated simply because these donations need not be publicly disclosed.

And if you thought that was's a shocking statistic from the report Analysis of Income & Expenditure of National Political Parties for FY- 2014-2015 : 

The BSP claims it hasn't received any donations above Rs 20,000. That's why we can't find any BSP donation details in the public domain. And this has been the party line, so to speak, for ten years now. 
Yet...they get crores year after year.
But it's not just the BSP.

No public information is available on where the BJP got Rs 434.7 crores in 2014-2015, which represents about 50% of the party's total donations.
We also have no idea where the Congress gets 32% of its funding.

We are talking about hundreds of unaccounted crores every year.

Quote of Former CEC:
Many political parties are set up with the sole intention of laundering black money.
- Former Chief Election Commissioner, TS Krishna Murthy 

Under Section 13A of the IT Act, political parties are exempt from paying Income Tax. But they are required to file their Income Tax Returns (ITR).

Donations below 20,000 rupees are not required to be reported to the ECI (Sec 29C, sub-section 3) but they have to be reported in the ITR. Political parties are essentially not required to disclose details of those donating below 20,000 rupees.

A Simple study of IT returns of any political party will show that maximum donations to them are from such ‘unknown’ sources.

Parties are exempted from income tax, but they still have to: a. maintain books of accounts, b. file returns, c. be open to scrutiny, even raids, etc.
Parties can take money and show them as donations below 20,000 rupees (making backdated entries showing that donations were taken before demonetisation was announced) and try to convert it into white money for a ‘cut’. This in effect is an indirect way of ' money laundering '.

The Election Commission of India has proposed that the limit for anonymous donations be reduced from Rs 20,000 to Rs 2,000. 

Alert Citizens Forum of India demands that the Government should amend the Income tax act, 1961 to make rules same for donations under 20k and above 20k. It will stop all black money in Political donations. There should be transparency in political donations.
Please make all political parties donations cashless or digital/E-payment, E- Batuva.
This will go a long way in reducing corruption and enhancing the fight against Black money.


For Alert Citizens Forum of India,

Dayanand Nene                  Rajan Chandok
President                              Secretary
• Political activist: Bharatiya Janata Party
• National Secretary,,Consumer Protection Service Council.

Alert Team: Jitendra Satpute, Prasad Bedekar, Pramod Date, Ganesh Iyer, Kiran Joshi, Sudesh Khatawkar, Sanjiv Pande, CS Sandhya Malhotra, Swati Bedekar, Sangita Koganur, Sachin Nene, Parikshit Dhume

Request to Close Loophole Allowing Political Parties to Launder Black Money

A7/303, Saket CHSL, Saket Marg, Thane (W) 400601 #8879528575

December 21, 2016

The Hon. Finance Minister,
Government of India,
North Block,
New Delhi.

Respected Sir,

Sub: Request to Close Loophole Allowing Political Parties to Launder Black Money

With reference to the above, we submit to you as under:

1) On December 16, 2016, the Revenue Secretary Shri Hasmukh Adhia informed that the political parties are free to deposit old Rs 500 and Rs 1,000 notes in their bank accounts. Shri Adhia also said that deposits in the accounts of political parties are not to be taxed. "If it is a deposit in the account of a political party, they are exempt. But if it is deposited in individual's account then that information will come into our radar". 
This basically meant that deposits made by political parties would not be up for scrutiny. 
This statement created a lot of controversy.

2) Your good self  then took pains to explain that the political parties were not being given any favourable treatment: "Under Section 13A of IT Act 1961, Political parties have to submit audited accounts, income and expenditure details and balance sheets. Post demonetisation, no political party can accept donations in 500 and 1000 rupee notes since they were rendered illegal tenders. Any party doing so would be in violation of law." 

3) You had added that just like anyone else, political parties can also deposit their cash held in the old currency in banks till the 30th of December provided they can satisfactorily explain the source of income and their books of accounts reflect the entries prior to 8 November.

4) Sir, we humbly state that while they may sound different, the statements of both Shri Adhia and your good self are essentially saying the same thing. 
Political parties are currently not required to publicly disclose contributions of up to Rs 20,000. 
This rule allows contributors to package unlimited political contributions just below this threshold value completely free of disclosure.

5) This basically means that any political party having received individual donations of up to Rs 20,000 in cash can deposit it in bank accounts. This money will not be investigated simply because these donations need not be publicly disclosed. That is the law of the land. 

And that is precisely what Shri Adhia said: "If it is a deposit in the account of a political party, they are exempt. But if it is deposited in individual's account then that information will come into our radar." 

And as per your statement, political parties can go through the audits but they still won't have to publicly declare the names of the individuals and institutions, who have donated amounts below Rs 20,000. 

6) Let us look at some data from 2014-2015, put together by the Association for Democratic Reforms. 
As the report titled Analysis of Income & Expenditure of National Political Parties for FY- 2014-2015 and dated June 3, 2016, points out: "Only 49% of the total donations of the parties came from voluntary contributions above Rs 20,000." 
This means that 51 per cent or more than half of the total donations of National Political Parties came from donors whose details are not available in the public domain. 
The BJP, Congress, BSP, NCP, CPI and CPM, form the six national level political parties. 

7) As the report points out: "A total of Rs 648.66 crores (51% of total donations) of the total donations to National Parties was collected during FY 2014-15 from donors whose details are not available in the public domain." 

8) The report makes several other interesting points: 

a) BJP collected Rs 434.67 crores (50% of total donations) from donors whose details are unavailable. 

b) BSP claims not having received any donation above Rs 20,000, hence no donations details of the party are in public domain. The BSP has been declaring this for 10 years now. 

c) NCP is only party which has not received donation below Rs 20,000 during FY 2014-15. Thus all voluntary contributions are available in the public domain. 

d) As far as the Congress is concerned, 32 per cent of the donations of the party came from unknown sources. 

e) The unknown sources of income are essentially raised through 'sale of coupons', 'relief fund', 'miscellaneous income', 'voluntary contributions', 'contribution from meetings/ morchas' etc. 

9) So as far as dealing in cash is concerned, it continues to be the order of the day for political parties. It is worth mentioning here that we are talking about only six national level political parties here. 

10) The number of political parties operating in India is significantly more. A PTI report dated August 2015 points out: "According to the [Election] Commission, as on July 24, there are 1866 political parties which are registered with it." 

Most of these parties do not fight elections. Then why are they set up in the first place? As former Chief Election Commissioner TS Krishna Murthy recently told The Indian Express: "Many political parties are set up with the sole intention of laundering black money." 

11) In fact, there is a possibility that many of these political parties would have been laundering money in the aftermath of demonetisation as well. The law of the land does not stop them from doing that. All they need to claim while depositing demonetised Rs 500 and Rs 1,000 notes into a bank is that it was donated on or before November 8, 2016.

Alert Citizens Forum of India suggests that  it would be make tremendous sense for the government to release data on the total amount of demonetised Rs 500 and Rs 1,000 notes deposited by the political parties in banks since November 8, 2016. 

A couple of days ago, the Reserve Bank of India (RBI) has come up with another rule. 
An individual while depositing more than Rs 5,000 must offer an explanation to at least two bank employees as to why this could not be deposited earlier. The amount will be credited only after receiving a satisfactory explanation. The RBI wants the explanation to be kept on record to facilitate an audit trail at a later stage. 
While citizens need to show an identity proof while depositing their old Rs 500 and Rs 1,000 notes into a bank account,  political parties can continue to receive donations of up to Rs 20,000 in cash and need not declare who gave those donations. The political parties can deposit the old Rs 500 and Rs 1,000 notes into their bank accounts, and no questions will be asked. 

It is our considered opinion that the issue of black money cannot be tackled seriously, without making political funding transparent. 

This needs simple majority in the Parliament. The BJP has a majority in the Lok Sabha and can take the first step towards this. It is likely to be supported by some parties in the Rajya Sabha as well. 
Even without a majority, the party did manage to get the Goods and Services Tax passed through the Rajya Sabha.

The Election Commission has suggested that "anonymous contributions above or equal to the amount of Rs two thousand should be prohibited." 
But why even allow a window of Rs 2,000? Political parties should move towards a totally cashless way of taking donations. 

To conclude, we feel that the government should immediately plug this anomaly by amending / enacting laws.
This anomaly which as of now clearly allows political parties to launder black money. 

Will something be done on this front or are only the citizens of this country expected to show all the honesty? 


For Alert Citizens Forum of India,

Dayanand Nene
•Activist of Bharatiya Janata Party
•National Secretary: Consumer Protection Service Council.

Alert team: Anirudha Godse, Jitendra Satpute, Prasad Bedekar, Kiran Joshi, Pramod Date, CS Sandhya Malhotra, Ganesh Iyer, Sanjiv Pande, Sudesh Khatawkar, Parikshit Dhume, Swati Bedekar.

Memorandum to Finance Minister regarding People's expectations from the Union Budget 2017.

A7/303, Saket CHSL, Saket Marg, Thane (W) 400601 #8879528575

December 21, 2016

The Hon. Finance Minister,
Government of India,
North Block,
New Delhi.

Sub: Memorandum regarding People's expectations from the Union Budget 2017.

Respected Sir,

As the budget making process gets underway, the people of India are praying that the coming budget is able to please both – the suits as well as the aam aadmi – specially after the pain they have been receiving after the demonetization.

This year the government has parted ways from the colonial-era tradition of presenting the Union Budget on the last working day of February and this year, you will present it on February 1. And with the new beginning comes new expectations, which are already rising high.

Post demonetization, the government has rolled out many discounts to promote digital transactions. Hinting at rate cuts it has been announced that the demonetisation and push for digital transactions will enable to make both direct and indirect taxes more reasonable at 'some stage'.

Your statement has given hopes to many taxpayers. Even experts believe that after the 'courageous' currency ban move, taxpayers deserve some rebate. 

Alert Citizens Forum of India is presenting below a synopsis of the expectations that the people of India - the Tax payers have from the government:

1. Reduction in Personal Income tax rates.

Expectation (from the Budget) is for the Government to reduce the personal income tax rates or enhance the tax slabs, probably as an incentive, given that Income Disclosure Scheme has resulted in additional revenue and the impact of demonetisation may bring in more taxpayers.
The initial proposal under the Direct Tax Code was to only tax income of 25 lakh and above at the rate of 30 percent. With the continuous rise in the cost of living, raising the exemption limit is the need of the hour. Currently, the exemption limit is Rs 2.5 lakhs.

2. Extending HRA exemption to Tier 2 cities.

The section of salaried employees, staying in rented homes, also have expectations from the Finance Minister. Prices of property is shooting up not just in metros but everywhere. Considering this, it is expected that the HRA exemption of 50% of basic salary, which is currently available only in case of metros, is also extended to Tier-2 cities. 

3. Increase the exemption on Medical reimbursements.
In your third Union Budget of 2016-17, you had rolled out schemes and policies to further equip the healthcare sector of the country. With specific focus on improving the livelihood of the  rural population, the Union Budget 2016-17 seemed to be aimed at putting more money in the hands of the citizens. However, in terms of personal health, keeping in mind the rise in the healthcare costs, the exemption on account of medical reimbursement is restricted to Rs 15,000 per annum, which should be at least, doubled.

4. Increase in 80C limit.
Under 80C, currently, the deduction in respect of various investments is upto Rs 1.5 Lakh. In a bid to boost savings;  a corresponding increase in the limit to Rs 2 lakhs would be attractive. 

5. Deemed Income taxation must be removed.
As regards the house properties, according to the present rules, house owners having more than one property are taxed on deemed income for unoccupied house. Many feel this rule is unfair, as there is no real income. Hence, a wide expectation is that this deemed income taxation should be removed and actual income earned should be taxed. 

6. Amendment to Section 192.
Another amendment the taxpayer is looking for is under Section 192. This section of the I-T act does not provide for claiming benefits of Federal Trade Commission (FTC) at the time of withholding tax. This results in deduction and deposit of higher tax at the withholding stage leading to the employee claiming refund at the time of filing return of income. This causes hardships related to follow up of refunds. Because of which, the tax payers desire that that Section 192 is amended so that while calculating TDS at the salary; benefit of claiming FTC is instantly available. 

7) Make pension income on maturity tax free.

NPS of national pension scheme is the new hope for salaried class to start accumulating money for retirement. In fact right now this is the best EPF alternative, but this tool is not EEE. That means maturity is taxable. So, the expectation is to make it tax free.

8) Fixed Deposits.
The concept of tax saving fixed deposit scheme should be withdrawn and instead of that one person should allowed to do a certain amount of FD / year without worrying about any income tax.

9) Mutual Funds.
The popularity of Mutual fund investments are growing in country and people have started understanding the concept of wealth creation. In such a case investment through ELSS mutual fund should be encouraged by putting some special income tax relaxation rule.

10) Make Home Loans easy.
After demonetization, it is expected that the real-estate market is going to get a correction in coming days. In such a case, a low home loan may increase the purchasing power of buyers and the real-estate market will get a direct boom.

11)  Respite to Senior Citizens.
Senior citizens should be provided with much more relaxation in case of income tax or TDS rules from fixed deposit or income tax slab rate.

12) As people are travelling more abroad, the exemption limit for LTA is not enough in that case for the period of 4 years. So, please raise the LTA limit at-least for foreign travel.

There is a saying “There are only 2 certainties in life – death and taxes” and if historic records are anything to go by, one doesn't need a crystal ball to predict that the taxes of alcohol, tobacco, luxury goods and precious metals/gems will increase. The only question is by how much. 
Then there is the new player in the tax space to contend with as well – GST. The certainty about GST is that it will be introduced during the 2017-2018 fiscal. The uncertainty is whether it will be introduced in its current form which has polarised opinion or in a more watered down and less polarised format with amendments. People eagerly await news on GST.
To conclude, Sir, the people of the country have supported the government during the demonetization phase. They now await and expect certain succour in the forthcoming budget 2017.
Hope and trust that you will give them their due.


For Alert Citizens Forum of India,

Dayanand Nene
•Activist of Bharatiya Janata Party
•National Secretary: Consumer Protection Service Council.

Rajan Chandok.
Co author, BJP activist and Political Analyst

Alert team: Anirudha Godse, Jitendra Satpute, Prasad Bedekar, Kiran Joshi, Pramod Date, CS Sandhya Malhotra, Ganesh Iyer, Sanjiv Pande, Sudesh Khatawkar, Parikshit Dhume, Swati Bedekar, Sangita Koganur.

Letter to Finance Minister - Feedback on the ground situation one month after demonetization.

A7/ 303, Saket CHSL, Saket Marg, Thane (W) 400601. # 8879528575

December 12, 2016

The Hon. Finance Minister,
Government of India,
North Block,
New Delhi.

Sub: Feedback on the ground situation one month after demonetization.

Respected Sir,

This is the third letter that Alert Citizens Forum of India is addressing to you after the demonetization announcement.
As nationalist minded citizens and well wishers, we believe that it is our duty to give unbiased and correct feedback to the government.
Hence this endeavour.

After one month since the announcement of demonetization, people in the country are still struggling with cash crunch. 
With large number of ATM's running out of cash or half-shuttered, people are facing immense problem to avail their hard-earned money. 
The situation is grimmer in rural and tribal areas where many villages lack proper banking facilities and cash starved people are unable to make any transactions.

In the press conference that followed the monetary policy on December 7, 2016, R Gandhi, one of the deputy governors of the Reserve Bank of India(RBI), said: "We reiterate that there is adequate supply of notes and hoarding of notes helps nobody's cause." 

The impression that the RBI is trying to create is that all is well and that it is the hoarders are responsible for the mess that prevails on the cash front, all through the country. But is that really the case? 

In a press release dated December 8, 2016, the RBI said: "During the period from November 10, 2016 and December 7, 2016, banks have reported that banknotes worth Rs 4,27,684 crore have been issued to public either over the counter or through ATMs." 

The total value of the Rs 500 and the Rs 1,000 demonetised notes amount to Rs 15.44 lakh crore. Hence, the notes replaced amount to close to 27.7 per cent of the demonetised notes. Before the notes had been demonetised the total value of currency stood at Rs 17.87 lakh crore. This basically means that around 23.9 per cent of the currency that was in circulation before demonetisation has been replaced. 

Hence, around one-fourth of the currency is back in circulation. The question is why doesn't it feel like one-fourth? Why does it continue to be difficult to carry out cash transactions? The answer is straightforward. 

To replace the Rs 500 and Rs 1,000 demonetised notes, the government printed the Rs 2,000 note, first. This means that there is no note between Rs 100 and Rs 2,000. Hence, every time one tries to spend the Rs 2,000 note, it is tough going because the other party simply doesn't have enough change going around. 

This, despite the fact that the RBI has supplied: "lower denomination of the notes, that is Rs 100, Rs 50, Rs 20 and Rs 10... over its counters," as well. In fact, it has supplied 19.1 billion pieces of denomination of these notes over the last one month. As deputy governor Gandhi put it "This is more than what the Reserve Bank had supplied to the public in the whole of the last three years." 

While the RBI said that a total of 19.1 billion pieces of notes of small denomination were printed, it doesn't provide us with a breakdown of numbers. It doesn't tell us how many Rs 100 notes were printed, how many Rs 50 notes were printed and so on. Hence, there is no way of finding out the total value of these notes that had been printed. 

Nevertheless, it is safe to say that the total value of the lower denomination notes printed and pumped into the economy, would essentially amount to around 5-6 per cent of the total currency in circulation before demonetisation. Hence, the bulk of the notes printed have been Rs 2,000 notes. Given this, there isn't enough change going around, which means even those who have Rs 2,000 notes are finding it very difficult to use it. 

What this means is that the 23.9 per cent figure of the total amount of currency replaced in comparison to the currency in circulation before November 8, 2016, when demonetisation was carried out, is overstated to that extent. 

There is another problem with the Rs 2,000 note. There is a huge rumour going around that it has been launched as a stop-gap arrangement and is likely to be demonetised soon. This rumour perhaps comes from what was mentioned in the press release accompanying the demonetisation decision. As the press release said: "High denomination notes are known to facilitate generation of black money... Infusion of Rs 2,000/- bank notes will be monitored and regulated by RBI." It is well worth remembering that the original motive of demonetisation was to tackle black money and fake notes. 

How will the situation play out in the days to come? Will things improve by the end of this month as the prime minister has repeatedly told the nation? As Urjit Patel said during the course of the monetary policy press conference: "What we have done over the last two weeks is recalibrated our production towards the 500 and the 100." This is going to improve the situation a little, given that as more 500s hit the market, the chances of the 2,000s being accepted will also go up, as more change becomes available. 

Having said that it will take some time for the situation to get back to normal. With 500s and 100s being printed the rate of currency replacement will slow down. It takes four 500 rupee notes to replace the currency that one 2,000 rupee could. 

Further, it is worth remembering here that the capacity of the printing presses supplying RBI with notes is around 300 crore notes per month. This, when the presses work 24 hours a day and for the full month. 

The total number of 500 rupee notes demonetised stand at 1,716.5 crore. At 300 crore notes a month, it will easily take five to six months to replace the total lot. Even if all the notes are not printed, given the push towards cashless, it will be a while before there is enough cash going around in the economy. 

Hence, the point is that people are not hoarding cash. There simply isn't enough cash going around. 
But what about all the raids all across the country and the cash being found during these operations? Isn't that hoarding cash? Yes. Nevertheless, these seizures at best amount to a few hundred crore, which is a minuscule part of the overall currency that has been printed and pumped into the economy. 

The fact is that even after one month, people are struggling to get money from banks. When it is possible, it is a Rs 2,000 note which is hard to exchange. 
However, surprisingly there has been no protest and the true Indian spirit has taken it in the stride. 
As it has been projected as being a scheme that attacks black money which has been eroding our economic fabric, people are willing to be inconvenienced if it means that a larger good is achieved in future. This is a big positive considering that the majority does believe in this measure and are prepared for this sacrifice.

But two things need to be seen. First is: How would we evaluate the success of the scheme? Will it be in terms of the gains in revenue relative to loss of GDP? Or will it be the measure of currency lost in the system? Or is it the time taken to get back on our feet. This would be an interesting analysis after December-end.

The second is a concern. With the flow of deposits increasing and the sense being that not much currency will actually slip out of the system, there is a fear that the taxman could harass several tax payers asking for proof of money out in the bank. There is already some talk of the government gunning for gold with households.
Finally, to conclude, the people of the country  have responded tremendously to the Prime Minister's appeals and in spite of great inconveniences they have kept their cool and restraint and borne everything 'for the sake of the nation'.
Now it is up to the Government to ensure that things normalise as quickly as possible and the common man is given respite in the form of a good budget, reduction in prices of essential items and a better life.


For Alert Citizens Forum of India,

Dayanand Nene
Activist: Bharatiya Janata Party, Mumbai
National Secretary: Consumer Protection Service Council 

Alert team: Jitendra Satpute, Prasad Bedekar, CS Sandhya Malhotra, Kiran Joshi, Parikshit Dhume, Pramod Date, Ganesh Iyer, Aditi Nene, Pradnya Joshi.

CC : Shri Urjit Patel,
        Reserve Bank of India.
CC : Shri Santosh Gangwar,
       Shri Arjun Meghwal
       Ministers of State,
       Ministry of Finance,
       Government of India

Feedback no.2 to Finance Minister on Demonetization and its aftermath.

(Unit of Righteous Foundation - Regd NGO)
A7/303, Saket CHSL, Saket Marg, Thane (W) 400601.

November 17, 2016.

The Hon. Finance Minister,
Govt of India,
New Delhi.

Sub: Feedback no.2 on Demonetization and its aftermath.

Respected Sir,

Greetings to you as we send our Alert Citizens Forum second feedback on the above subject.

The historic decision to demonetize ₹ 500/1000 currency notes was received by the country with great hope and positive vibes.
The people had initially lapped up the appeal by the respected Prime Minister and your good self that there will be initial problem while implementing the decision.
Sir, now 8 days after the announcement of the decision the inner feeling I am getting is that the demonetization has hit a big roadblock. 
Yesterday we had conducted a survey in Mumbai and Thane over 3000 respondents on Demonetization and its aftermath for a client. The findings were as under:
75% supported the move from day 1.
However, of that 75%,  36% people were now having second thoughts.
And in all, 80% people felt that the government has mismanaged the implementation part of it.
54% felt that introducing the new 2000/- note was not required and the government should have printed a new series of ₹ 100/- currency notes well in advance to have avoided the chaos in banks and ATMs.  56% people doubted that this demonetization will not curb black money.

People are in favour of Demonetization but feel that the implementation could have been much better. 
Common Problems faced :

1) *Non operational ATMs*
Many ATMs are not operational (shutter down). People feel that with RBI waving off the transaction charges many bank are not interested in maintaining their ATMs as it earns them NO revenue. 
ATMs should have been replenished thrice in a day with such huge demand for currency. 

2) *Banks giving ₹2000*
Its good to get a 2000 currency for the novelty factor, but who will give you change when you are in the market to buy something. 

3) *Lack of availability ₹500*
People feel  that ₹500 should have been Printed, Stocked and Ready for dispatch on the 8th while the announcement of taking the old design out of circulation was made. 

Today 8 days after the Demonetization announcement there is still 
▪Not enough cash in ATMs, 
▪Hardly any ₹500,
▪Long Long lines in ATMs.

We did a quick reality check as to what could be the possible causes of the inadequacy in availability of notes in banks.
We studied the following link along with the various economic reports:
and found that in terms of value, Rs 500 & Rs 1000 notes made up for more than 86% of the notes in circulation, which is more than 14 Trillion rupees (14 Lakh Crores). 
The printing capacity of the current printing presses in the country may not be sufficient to meet the demand for the new Rs 500 and Rs 2000 notes.    

India can print around 2 billion pieces of currency notes a month :
4 lakh crore in 2000 rupee notes only
1 lakh crore in 500 rupee notes only
0.2 lakh crore in 100 rupee notes only.

We have withdrawn 14 lakh crores from the economy + (the counterfeit Pakistani notes.).

We assumed that we have been printing for about 3 months most of these 2000 rupee notes but notes of 500 and 100 must have been printed as well.
By conservative estimates we may have up to 8 lakh crore in out treasury chest.
We assume that it had been calculated that the 2000 rupee note would be the mainstay of the economy and so were focused on. 
These 2000 rupee notes have not been user friendly as the masses found them un-spendable, as nobody was ready to give change after accepting the notes due to liquidity crunch.
We assume that to print adequate 500 rupee notes to cover the shortfall due to the 2000 rupee notes is likely to take another 6 months at the least and if additional 100 rupee notes have to be printed then the printing time can go to a year.

There is the option that the situation will ease once enough 500 rupee notes come into the system cause their presence will make the 2000 rupee spendable.

It will be at least January before we have a semblance of normalcy… and for the economy to be full up and running it might be late mid 2017.

Sir, today the Supreme Court has warned that unless the Government takes urgent measures to make currency available for payment with banks, the country faces the grim prospects of riots as public patience is fast waning.
We request you to please note the points mentioned above and trust you will take measures to alleviate the grievances of the people.
As expressed in our earlier letter, our services are at your disposal for any assignment that will help in reducing the hardships of the people.


For Alert Citizens Forum of India,

Dayanand Nene
Socio-political activist:
• Bharatiya Janata Party, Mumbai.
• Consumer Protection Service Council

Alert Board: Jitendra Satpute, Prasad Bedekar, Ganesh Iyer,  Kiran Joshi, CS Sandhya Malhotra, Sangita Koganur, Swati Bedekar, Sanjeev Pande, Pramod Date, Parikshit Dhume, Sudesh Khatawkar.