tag:blogger.com,1999:blog-19649274.post1224474908617432816..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Legal questions about demonetisation: What happens to the assets that back extinguished rupee notesAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-19649274.post-89323312366244665382017-01-06T20:52:31.785+05:302017-01-06T20:52:31.785+05:30When one earns a promissory note of India spending...When one earns a promissory note of India spending his/her time and effort or converts his wealth in to promissory notes - his time and effort or wealth used in conversion can not be invalidated by a deadline for exchange of promissory notes. When one has earned- he has earned for ever and the promise against it should be forever. Now the deadline is only to exchange that promissory note but not to in validate the wealth earned by the bearer. Let us be careful. None in the world can invalidate once earned wealth out of his effort and investment of time or wealth unless some one wants to loot the wealth by wrong means. Then the law itself is illegal. Then the whole process is for looting.<br />How may of Indians in India and abroad are in Coma and how many of Indians are mentally derailed, how many of Indians have lost memory, how many of Indians in India, How many of resident Indians abroad and NRIs were unable to exchange their old notes for New notes. Can Government loot their hard earned money taking the advantage of their inability or disability ? <br />Now RBI should lift the time limit. It should exchange old notes for ever and keep up the credibility instead of planning to loot the people’s hard earned money. If a bearer can not exchange his notes before a deadline his money is not black money. Money can not be black after 50days of time. The currency earned by a person is nothing but the assets of RBI earned by that person. So the moderator/ RBI governor can never say forever that he will not pay the bearer and he is liable to pay the bearer till the world exists. In fact he is supposed to pay the bearer its real value since the value of money changes by time.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-37556408801016201782016-12-16T14:44:32.557+05:302016-12-16T14:44:32.557+05:30What might be the basis of Urjit Patel's state...What might be the basis of Urjit Patel's statement that withdrawal of legal tender did not imply any change in the liability of the RBI or in the RBI balance sheet. This also clarifies that the government is not going to make any windfall gain out of the surplus profit of RBI. Is it backed by the RBI Act?<br /><br />Reference: http://www.thehindubusinessline.com/opinion/usha-thorat-on-rbi-rate-cut/article9416226.ece , by Usha Thorat, Dec 8, Business Line, para just before summing up.Sahana Roy Chowdhuryhttps://imi-k.edu.in/index.php/faculty/faculty-details?staff=sahana-roy-chawdhurynoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-71307860609778857542016-12-01T11:22:25.260+05:302016-12-01T11:22:25.260+05:30RBI had booked profit against demonetized notes no...RBI had booked profit against demonetized notes not submitted for exchange under 1946 demonetization. This statement is based on two archived docs that can't be uploaded here. I Have not yet come across documents what accounting RBI did under 1978 demonetisation. You might like to read my take on demonetization- https://goo.gl/Rsp2MNnaresh minochahttps://www.blogger.com/profile/01041117077781389256noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-64825681388845620022016-11-27T09:20:20.283+05:302016-11-27T09:20:20.283+05:30Is RBI legally bound to honor the Rs.500 and Rs 10...Is RBI legally bound to honor the Rs.500 and Rs 1000 demonetized notes even after the published deadline? Aren't they suppose to be irrevocable Promissory Notes? Can I take RBI to tis for not honoring its commitment if they refuse to accept my notes lets say in 2020?Anonymoushttps://www.blogger.com/profile/06767222210257769491noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-42448278361660357852016-11-21T11:29:17.412+05:302016-11-21T11:29:17.412+05:30Thanks, Rajeswari. I am not sure if RBI's prom...<br />Thanks, Rajeswari. I am not sure if RBI's promise to pay the bearer can be construed independent of the legal tender effect. If we were to take a purposive (as opposed to a literal) interpretation of the law, then I don't think the legislature could have intended to ask RBI to pay up even where legal tender is withdrawn. On your question re. the amendment of the RBI Act, yes, the ambiguity warrants amendments to the RBI Act. This may also be achievable by an agreement between RBI and GOI, but one has to see Art.110 of the Constitution to be sure about this (I haven't looked at it in detail on this specific question). <br />On your question re. whether such amendments were recommended by the Malegam Committee report, no.Bhargavihttps://www.blogger.com/profile/07579522239694895124noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-12147831129875410432016-11-21T00:12:02.719+05:302016-11-21T00:12:02.719+05:30Hi, I am a young Chartered Accountant and have pub...Hi, I am a young Chartered Accountant and have published my views on demonetisation and Impac on the banking sector in a brief article on my blog. Hope you would enjoy reading it. The link is below:-<br /><br />http://theholisticnotion.blogspot.in/2016/11/demonetisation-and-impact-on-banking.html?m=1Anonymoushttps://www.blogger.com/profile/07800675102831920731noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-36115595766128574172016-11-20T18:26:24.695+05:302016-11-20T18:26:24.695+05:30Much needed article given the current status of th...Much needed article given the current status of the debate. The question as to whether RBI's liabilities will be extinguished post a certain deadline is of course intricately connected to whether RBI is obliged to honor its promise to 'pay the bearer the sum of...'. If the RBI indeed has to pay the bearer, then even after the deadline is over, the liabilities on RBI's balance sheet will not diminish to the extent of the unreturned notes. If however the RBI has no obligation to pay the bearer once the legal tender status of the notes is withdrawn, then and only then the liabilities get extinguished and the question of surplus profit arises. We are currently looking into this and hopefully will have an answer soon. Even otherwise, the issue of RBI's payment of dividends to the government is an interesting one and the article throws much needed light on why there is confusion surrounding this question. One thing I wasn't clear about: are you recommending an amendment of the RBI Act to add provisions clarifying the amount and process of dividend distribution to the government? Is this recommended/mentioned by the Malegam Committee report?rajeswarihttps://www.blogger.com/profile/04491266465773969601noreply@blogger.com