Posted on 15 December 2009 by Ram Valia
The ever imminent problems which the country of India faces are money laundering, corruption, black money which leads to the main problem of terrorism. When we say that there is terrorism is affecting the country’s security and hence leading to an environment not worthy of investing in the country leading to FII taking out the existing money from our country and not putting in money if they were planning about doing it.
The very simple way of solving this problem is by stopping the printing of notes with high denomination. Like in the UK there is no note above 50 Pounds and very rarely will you find a $100 note in the USA. This is something very important in stopping the fake currency scandal which in turn will stop all the other problems on its own.
There should be no notes of value greater than Rs. 100 so that like in many developed countries. And take out all the notes of higher denominations out of circulation. This will make it very difficult for corrupt parties to carry black money from one place to another unlike now due to the large Rs. 1000 notes they can carry a large amount in a very small briefcase unnoticeable by officials, but if the same amounts were to be carried in Rs. 100 or Rs. 50 notes then the loads and size of the parcel will be more than 10 to 15 times the original load making it very difficult to transport the bribe amounts.
The next topic about black money, only because of the high denominations people are able to hide a large amount of their black money in their house floorings and walls so if these notes are to be cancelled and new low value notes to be brought in then they will not be able to use it or even hide it as they will have to get the notes changed and In the process the black money can come in broad day light and the offenders can be punished and at the same time the government should only take back the notes which are in their serial order lists so that all the notes that are not in the records can be tagged as fake currency and be burnt
The next stage is of discussing about the printers of fake currency, they are able to do so as they get a very high margin and value out of printing a high valued currency bills and getting profits many times over their cost and also worth the risk that they take in doing the illegal act of printing and transporting the notes inside our country. So if these notes are only of Rs. 50 then it will not be feasible to take so much risk and hurdles involved in printing these fake currencies. So the printing will also stop
So now finally coming to the main problem of terrorism, the main way in which they are able to buy the weapons is through the way of fake currencies. Because they are very closely linked to the people who are directly associated with printing fake currencies and once they have injected these fakes into the main monetary system it is really difficult to get it out as it spreads very swiftly.
So finally we can understand and link all these elements and conclude that a simple solution of getting these high denomination currency bills out of circulation will be of enormous help and benefit towards solving all these problems of money laundering, black money, fake currency bills and last but not the least terrorism
I would like you to spread this word which will work out to be the best means of improving our country’s economic development and security issues. I would like to thank ‘Yogi Ramdeo Maharaj’ for this in genuine idea.
Posted on 15 August 2009 by Harsh Vardhan Roongta
Anant Kumar, a well-established surgeon with a roaring practice urgently needed a loan of Rs 20 lakh recently, to buy a bargain distress sale property costing around Rs 65 lakh.
Kumar approached a leading bank for a home loan.
Considering his credentials, banks took up his application. The process began with the submission of documents which included identity proof and proof of residence, besides regular documents required for a home loan.
The real shocker was mentioned in the list of documents required as proof of income in the list given by the bank. A surprised Kumar shot back “If I am mortgaging the house worth Rs 65 lakh, why am I being asked for income proof for a loan of Rs 20 lakh only?”
True. Where is the need of income proof when he is giving a security of over three times the amount of loan?What could be the logic behind this?
Let’s find the reason.
It is the difficulty in re-possessing the property and the relative illiquid nature of property which makes income proof necessary. In a property loan, the possession of the property remains with the borrower. It is not going to be easy for the bank to first re-possess and then sell Kumar’s house to recover the loan if he defaults. Therefore, he needs to produce documents which show that he has a steady income stream.
But why would a bank find it difficult to get possession of and sell the house? First, the bank may not find it easy to evict existing occupants from the house before selling it, as it needs to follow a legal process to get vacant possession of the house. This has become relatively easier with the SRAEFESI Act, but the occupants (including the borrower) can and many times, do create several legal hurdles in the process of vacating the house. It is only after getting vacant possession that the bank can sell the property to recover its money.
The scenario would be very different if the security is a liquid asset such as equity shares, or for that matter, gold.
In the above example, if Kumar had offered to pledge his shares in a blue chip company worth Rs 65 lakh for the loan of Rs 20 lakh, he would not have had a problem in getting this loan, even without any income documentation.
Since pledged shares are in the control of the lending bank which can with one single act sell these security without any hurdles from the borrower immediately, a borrower’s credit limit is not restricted by declared income as the bank has immediate ability to recover it’s money. Thus, in such case, the borrower can get a certain percentage of the value of the shares (usually around 40-50%) value as a loan irrespective of his income.
The same holds true for pledging gold jewellery which remains in the physical custody of the bank and thus, can be easily sold to recover the money. In both the cases, the bank does not have to take expensive and time-consuming legal help to possess the security. It is readily available with the bank for selling and liquid money can be raised in a short time.
Posted on 19 March 2008 by Deepa Chauhan
I had taken a personal loan from my father for business. I have had a good payment track record in the past but I suffered a loss in my business. We now live in a rented house and do not have any securities/insurance etc to pay the loans. This is one of the reasons why there are many cheque bounces on my account now, although I’m repaying some loans. My father recently had a paralytic attack too. We are in deep trouble and do not know what to do. Recovery agents are harassing us and sometimes threaten us. Is there anything that can be done?
