DEMONETISATION

DEMONETISATION

It's been more than a month since Modi announced the scrapping of 500 and 1000 notes. News media ran headlines for several days after that regarding the many developments. It was said then that it was all part of a master plan by our PM to eradicate corruption from the country.

For the record, this wasn't the first demonetization. This exercise was also carried out once by the British Raj in 1946. Needless to say, the scene was similar to what it is now. There were unending queues at banks and lots of money exchanged. The window offered was a tad shorter, of just a few days.

However, at that time the move was a total failure. The British Raj didn't have the necessary machinery to deal with such problems. Peasants and other farmers rose in revolt against their colonial masters.

And yeah, it didn't succeed in eradicating corruption. Black money flourished even in the Post-Independence Era. However, these events did spark widespread unrest leading to lots of communal riots which finally culminated into the Partition.

 

Demonetisation in 1946

 

Demonetisation in 1978

In 1946, all 1,000 and 10,000 rupee notes were recalled. In 1978, 1,000, 5,000, and 10,000 rupee notes were demonetized.


India had the bear the wrath of yet another demonetization after PM Modi announced on November 8 that Rs. 500 and Rs. 1000 notes from midnight ceased to be legal tender. It was a night announcement. However, the next day all the three stock indices BSE SENSEX NSE fell down and crashed.

And there were the banks. Even they had no cue of what was going on. They had hoards of money stashed with them which were of no use now. I'll come back to this soon.

Then, of course, Social Media ran lots of bogus rumours and other related stories. The first was about how there was some NGS Chip inside the 2000 note which enabled satellites placed in orbit to track where we have lots of currency stashed. The Finance Ministry clarified that there is no such thing. Then it came into view that quite a few of the people noticed that the ink came off when the note was wet. This too was clarified to be nature of the unique kind of ink being used in the printing process.

The latest one doing the rounds is of radioactive ink in the notes. The Ministry has refused to comment on this.

Banks are working double shifts trying their level best to help all the people exchange their currency notes. Quite a few other avenues were offered to the willing. The old notes were accepted for a short time at certain places as in Petrol Pumps, Toll Plazas, LPG Stations etc.

A complex series of measures were introduced to check the fraudsters in between. Even now as I type this the Income Tax Department is working hard to catch those who stashed lots of black money and may or may not have been successful in converting them into the new currency.

The machinery behind all this is entirely complex. It's money working for you in a way. I'll try my level best to use my knowledge and try to explain the process of Demonetization. All this has been the effort of reading boring finance articles and trying to figure it out.

Well, let's begin with the banks. The problem with banks is that they have vast amounts of money kept with them. The RBI has a system of checks and balances which it calls ratios and rates. There are two ratios, SLR and CRR. The third one is the Repo Rate. SLR is Statutory Liquidity Ratio and CRR is Cash Reserve Ratio. The RBI has the mammoth task of controlling these to keep a tab on the economy. It faces flak, causes much more trouble than it's worth and so on.

The Reserve Bank of India is vested with powers concerning the use of currency in India, the control of its circulation and to check its misuse as under the Reserve Bank of India Act, 1934, as and when amended from time to time. The Government of India is given powers to mint coins as per the Coinage Act, 1906.

Cash Reserve Ratio as the name suggests is the amount of money kept as a reserve with the Central Bank. Banks are mandated to store a certain portion in the current account of the Reserve Bank of India. Understand that this is the money that is not in circulation. Banks can't invest any money from this amount. Neither are we supposed to withdraw any money.

Statutory Liquidity Ratio is the amount of money which remains blocked for statutory reasons and is not available for investment. It puts a certain amount of pressure on the banks balance sheets. However, at the same time that money remains safe and with that mechanism RBI also offers safety to the depositors who have invested money in the banks. 

The Repo rate is quite important as it is used to control inflation. It is the rate at which the Banks borrow money from the RBI. In other words it is the cost of short term money. A higher Repo rate decreases inflation and controls the borrowing of money. A low Repo rate is usually ideal which helps in borrowing money at a good reasonable rate.

Enter November 8, the PM announced that 500 and 1000 notes ceased to be legal tender. It was a closed cabinet decision which only Modi and the finance minister knew about. Vast swathes of currency became useless overnight.

The RBI requested banks to lend it the deposits they have in phases. Note the time gap. We are still a fortnight away from December 31, and banks are working overnight to ensure nothing goes wrong. The RBI is now busy devaluing those notes and discarding the old notes. It has a centralized CVPS Currency Verification and Processing System for the purpose. It is the same system that is used for exchanging soiled and mutilated notes at branches of all popular banks.

RBI decreased repo rate and asked banks to withdraw some money from it and supply to the citizens. There are four presses, two belonging to the RBI and two to the Government which are responsible for printing currency. These presses were now under heavy load as they had very less time and a lot of well... printing to be done.

NCR Corporation India oversees the entire process to ensure that cash reaches on time and all the ATM's are recalibrated and replenished.

Two presses, in Nashik and Dewas, are controlled by the government under Security Printing and Minting Corporation of India Ltd.; the other two, at Mysuru and Salboni in West Midnapore district some 150 km from Kolkata, are run by the Bharatiya Reserve Bank Note Mudran (P) Ltd, an RBI subsidiary. They work round the clock to ensure that sudden peak in demand of notes is met at the earliest.

Next came stage three. Demonetization ensured that banks had large amounts of money lying unsafe outside. All the deposits made to the banks in demonetized notes were technically lying in the open. On November 26, RBI finally increased incremental CRR Rate to 100%. This meant banks were forced now to deposit all the money with them into RBI account. This was done to absorb the excess liquidity present in the system.

This explains the entire process. As a finishing touch, December 7, RBI again revised CRR Rate and dropped the 100%.

However, this doesn't mean that the process is complete. NDTV reported today about how it doubted the IT regarding the machinery used to conduct so many raids leading to Crores of money being found inside Cars, Bank Vaults, and yeah the most recent and interesting one - inside the bathroom! According to news, it is being said that there are sleuths and whistleblowers watching out for suspects carrying huge amounts of money.

In short, one can do nothing but marvel at Modi's genius for execution of such a brilliant plan at a large scale level. However, we do realize that a lot of hardships have to be suffered by even the common folk who have nothing to do with black money and all that.

There is a silver lining. India has also become the first country to officially offer incentives and discounts on using ePayment facilities either through cards or net banking. The Government recently announced various measures to increase the people who are using net banking facility. Villagers are also being urged to follow suit. Those without smartphones are being asked to do mobile banking, a great innovation which even I have not heard of.

I shall end this article with a few closing points on net banking. I guess it's becoming a little long..

Net banking using cards and wallets is basically new technology which is yet to grow. Qualcomm, a leading mobile technology giant recently showed how unsecure our mobile payments apps were. It said that all of them run on Android surface level integration and not hardware level integration which makes them largely unsafe.

With so many people going online in a few months, it's time we built some really great security. Also public should have awareness about the dangers of net banking, phishing, fraud calls etc. So I guess it's time we woke up and tried our level best to ensure secure banking facilities for everyone.

ADVANCING TECHNOLOGY

THE MISUSE OF SCIENCE

Even though we hear of discoveries eons ago (READ: Fire, 3.4 million years ago), science as we know it was born not less than a few hundred’s years ago. It was born, like, when, mankind first began to ‘think’. Now we have entered 21^st Century, where science has conquered realms hitherto unknown even to imagination.

We have dug holes kilometers into earth and gone to our starry celestial neighbours and back. We have discovered bacteria the size of a thousandth of an inch and known distances in light years, too. We have counted the number of hairs on our heads and the stars in the Universe.

But then, Einstein would stop laughing in all his pictures if he were told that we used his Energy – Mass Equivalence to flatten whole cities. God knows what would happen to Nobel if he learns we used the dynamite to blow up our neighbours house. Thanks to some international treaties, we do not see countries bowling each other over.

Not to mention the excellent use we have put our two boxes to – the Television and The Computer. Both were invented after years of research for the common good so that mankind advanced forward and found his purpose on Earth. Children watch Television for hours on end and are having seeing problems from a very tender age, thanks to sitting too close. Only we know what uses we put our computers to, courtesy the Internet.

The internet, touted by many as the harbinger of revolution in the world, is the breeding ground for Phishing, Identity Theft, Trolling, Blackmailing. Teenagers know more uses of Facebook and Twitter than anything else. They don’t remember what is on 2^nd October but certainly know about 14^th February. 

They may forget who was Madam Curie but would remember Madamme Tussads.

Teenagers stay up till late at night and keep on chatting with friends or playing games. They do not remember their neighbourhood people but know that they have 1500 ‘friends’ on Facebook. In a fast paced world, the Internet is invading into the commercial domain wiping away all importance for people to people relationships.

I am sorry if anyone feels bad but how many of you know Pandit Madan Mohan Malviya???

The same answer will not be repeated if I asked who Justin Bieber was.

We have made huge strides in technology but now the million-dollar only question that remains now is that have we been able to put science to our good use or not? Today’s desktop computer was yesterday’s supercomputer. Computers area evolving very fast and are getting smaller by the day. We are now entering into the age of wearable technology, where watch like devices track our sleep cycles, food taken, calories burnt, etc. many health parameters.

Five of the World Superpower Countries have enough warheads to destroy the whole world three times over. One click and BOOM!!! The whole world is finished.

Genetically Modified Foods, meant to wipe out starvation and hunger crisis, are wiping out people from earth instead. Overdose of GM Foods causes the worst of diseases ever known to man. GM Foods are reported to contain toxins very harmful to existence. The result, we get a Generation loaded with wonderful diseases – each child being a walking hospital!!!

If we did not wake up to the challenge, we would soon be digging our own graves.

STEPHEN WILLIAM HAWKING

STEPHEN HAWKING

Believed by many to be one of the most brilliant minds ever, Stephen Hawking, CH (Companion of Honour), CBE (Companion of the British Empire), KBE (Knight of the British Empire), FRS(Fellow of the Royal Society), FRSA(Fellow of Royal Society for Arts) was born in 1942, in Oxford, (quite coincidentally) 3 centuries after Galileo Galilei. He studied Physics at Oxford and graduated from Cambridge.

Stephen, aged 12

In his early twenties, unfortunately, he was diagnosed with Amyotrophic Lateral Sclerosis, known in the United Kingdom as Lou Grehig's Disease.His studies, being largely theoretical (since he studies only theoretical physics) were not affected by the dreadful illness. Then began his cycle of slow disintegration which crippled him to sit in a wheelchair and later removed his ability to speak, too.

He is considered by the scientific community worldwide to be one of the greatest minds since Einstein and holds his chair at Cambridge, succeeding Dr. PAM Dirac ( Laucasian Professor for Mathematics). His respect in the scientific community stems from his over brilliant mind and seemingly paralyzing disease he has been afflicted with for decades.

He is known for doing plethoric amount of research on black holes. He is deeply intrigued by the Origin of the Universe, as according to him it alone explains the presence of a Creator. The various models of its origin keep various limits as to when he would have intervened in the creation.

In 1985, he was diagnosed with pneumonia. The tracheostomy operation also removed his ability to speak. It was at that time that he completed the first draft of A Brief History of Time: From the Big Bang to Black Holes. He somehow completed the book that ripped apart bestseller charts in the UK.

However now he is helped by a Communications programme ‘Living Center’ which was donated by Word Plus Inc. based in Sunnyvale, California. A speech synthesizer from Speech Plus California (also based in Sunnyvale California) and a personal computer were mounted onto his wheelchair by one person David Mason.

Carl Sagan, in the introduction to Hawking’s celebrated bestseller A Brief History of Time vividly recalls Hawking’s investigature  into the Royal Society –

‘A man in a wheelchair was signing his name on a book that had on its earliest pages the name of Newton. As he finished, there was applause from the audience. Stephen Hawking was a legend even then.’

Peter Higgs and Stephen Hawking. Foreground shows the LHC, artist's impression 

According to him, life for him is a claustrophobic room whose walls are narrowing day by day. Any love, care, recognition you get from those outside have little effect. For him, the end is just sitting at the door.

His disease of the motor neuron means that his body slowly disintegrates every moment and any moment can be his last. Although it was decades ago, but one doesn’t know when this legend may pass away silently.

Well, let’s wish the very best to the man who taught us so much that contemplating all of it would cost many of us our lifetimes!!!

EDUCATION - how much complete???

MANY FACETS OF EDUCATION

                                                                    

Education. Some say it is twelve years of careful note – taking, self study and staring at a black board (which looks more green than black most of the time J). Thanks to educational laws, nowadays we have an appreciable literacy rate. But is just literacy education?

Education is said to have been completed once its purpose is fulfilled.

The purpose of today’s education is mostly the rote learning of a few books and regurgitation by examination. Recent measures by the CBSE and the Education Ministry have led to the fulfillment of the goal of education to certain extent. We can now know and grow (which is something the CBSE logo propagates to the intellectual community).

The real goal of education is to educate to shape a child to become a responsible citizen who can take the mantle of the society when he grows up. Education is actually meant to teach values, too.

The learning of concepts through hands-on learning and not rote learning is just one of the many objectives central to the ideal form of education. It is really overwhelming to see that many schools have taken significant steps in that direction. Many schools are striving to make education a joy- ride by inculcating projects wherever they can.

Rabindranath Tagore’s Santiniketan provides a classical example of real education. Tagore himself always had a personal distaste for education tailor-made to suit only those bent to serve the British Empire. So when he grew up, he established this gurukula for those who also shared his distaste for conventional education. Education in those days was primarily introduced to induct Indians into British Civil Services, and take services form them.  

From the modern day, His Holiness Shri Satya Sai Baba also presents a wonderful example through his own children. He did not admit his children to conventional school till a few years and gave them free roam across the house. The children used to go near red blazing fire and try to touch it. They then observed themselves how their fingers got singed in the process. Thus, they learnt that RED IS DANGER. Simple.

He (Satya Sai Baba) used to just watch these proceedings EAGLE-EYED from a distance taking care that his children did not cause themselves any real harm.

Thus half of life’s lessons are learnt by them before they enter school. We rarely get to see such examples in real life. Today, if you get the topmost rank the whole class cheers you. They don’t even ask if you wrote on your own or copied from someone (or even didn’t write at all – trust me, I do even have real – life examples). Not that I am saying to stop studying, throw your books out of the window or anything like that.

You might be a walking supercomputer, but still life isn’t algebra. Or sin, cos, tan. The best of life is enjoyed outside the books. You never get brains to handle real-life examples in leather-bound books.

Life presents us with scores of problems. Our job is to wade through its deepest waters because the day will bring the sun. We have to face all problems and solve them. There can never be an end to problems and we have to just keep on moving on, because that is what is life is all about.

Even in a classroom, half the students are physically present, mentally absent. Their mind completes a world tour while the body sits staring at a wall painted black. Their mind goes to America, Australia, Africa, sails in the oceans, dives in Galpagos explores the world till a hard tap wakes it back to the present. The teacher throws our globetrotter out of the class. (sic)

Sometimes one thinks of the golden era. Our parents did not have internet, computer and if you went and asked someone what Google or Wikipedia was, they did reply it maybe a place in a foreign country. But yet, they did study, did get great marks and topped classes in many cases. We should perhaps worship them for going along without Facebook or Youtube. Or Internet in general.

TEENAGER TODAY

TEEN TODAY 

The teenager today has been lucky enough to be born in the era of commercialization. The world rests at his fingertips. Invading into today’s homes are gadgets, gizmos and stuff.

Multinational companies are busy inventing the next big thing in the market to compete with each other. Noise cancellation earphones, spy pens, the smartest smartphones, survelliance gadgetry and what not. Name it and they have it on offer. It seems the list won’t end.

Gizmos have made life a lot easier for the average teen. Then there are those lifestyle improvement gadgets which track various parameters about our health and help us modify our lives accordingly. They work day and night and some even wake us up at time in the morning monitoring our sleep cycles during the night.

 Samsung Gear Fit

These where the ones which are kind of helpful to us. But think of the other useless things. Today, on an average a person has two mobile phones. One can see even a paanwala thumbing at his touchscreen. What was earlier a flaunt toy possessed only by rich has now become accessory. In a fast world, mobiles are coming and going by the dozen. Teens too fall prey to catchy visuals and marketing and are always seen replacing old phones, devices, etc. keeping in pace with what is latest in the market.

But the gizmos do have a DOWNSIDE. They have not only made life a lot easier, they have also made it a lot lazier. We nowadays see teen diabetic patients courtesy a fast paced life coupled with combined effect of junk food and gizmos. We have moved on from family photos to selfies, and from full sentences to hashtags. Everyone seems to be in a hurry-burry to move ahead in the rat race and leave behind his next competitior.

Thanks to all our advanced gadgetry, we today live in a net of dangerous Electromagnetic Radiation, so deadly we risk ourselves to CANCER every day. Just take this into perspective. An average house has a fridge, TV, computer, and an AC if possible. The biggest demon is the mobile. It is constantly in touch with towers nearby and so is constantly emitting radiation. Even the other gadgets have to communicate amongst themselves, so they use EMR. It is very dangerous to expose oneself for long periods as it may lead to cancer in future.

The newspapers are filled with things like INTERNET ADDICTION, PHISHING, IDENTITY THEFT, TROLLING and other disturbing things. What on earth is internet addiction about? Why do we need de-addiction centres for that too? Do we not have brains? Sorry, our brains have been hacked into by Mr. Box - With - Brains

Facebook and Twitter (and the like) may have made the world smaller, but we have forgotten our neighbour because of our online friends. We remember the virtual world more than our local world.

I have personally not got any advantage from my Facebook account since I first created it. Perhaps only that you have liberty of expression – the other side won’t bowl you over. The interaction that used to exist a few years ago is absent. Teens keep glued to Facebook and forget about their bats and balls.

For them games mean Kinect, Nintendo, PSP and the others. They forget teenage is the period we ought to take good care of ourselves.

The world might have come knocking at our door, but it has bought both the good and bad with it. Some take everything in without basic filtering.

The result – we get a generation which doesn’t know about their neighbor, for whom because is bcoz (and yes it has happened even today) and who don’t care even if Voldemort comes to kill their neighbor. They do not care about General Knowledge; they just have a general knowledge of things.

I would thus request, or rather plea to the younger generation to stay away from ill- effects of ‘gadgetitis’ and emerge as fresh, smart, all-knowing leaders of tomorrow.

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CULPRITS WITHOUT CRIMES

ISLAND PRISON NIGHTMARES

600 people picked up from around the world.

Sent off to an island prison in the back of beyond.

Most of them were without a hint of crime in their past but the US said they were ‘enemies’ of the US. Most of them fortunate enough to be released into fresh air never led normal lives after that.

Life became hell for them. It was NOW that they became criminals and indulged in breaking federal law. Now they actually became dangerous threats to the society which previously had thought them to be ‘guilty’.

600 people from all over the world were put under bars by US forces at Guanatamo Bay, a US island territory near Cuba controlled by Naval Forces. Most of them never saw their families again. They were ‘fed on filth’ and they ‘slept on vermin’.

Outside the prison, America had started a literal war with the world. It installed full body scanners which cared the least about passengers’ privacy. It only had one thing on its mind – it wanted Osama, and anything in exchange for it.  Anything.

Amnesty International once went to Guanatamo Bay and was reported to have told that the US treated the people in ways that violated various treaties signed by the US. They were treated even more badly than Prisoners of War. The United Nations had even ordered a closure of the island prison.

America Inc. paid a deaf ear to all of them. It only wanted to lay its hands on 9/11 terror mastermind and Islamist outfit Al-Qaeda chief Osama bin Laden – at any cost. It staked everything it had into the terror hunt.

It was only until recently did USA succeeded in the capture of the world’s most talked of terrorist the terror mastermind Osama, thanks to Obama administration. Mr. Obama also won laurels after he ordered closure of the prison as soon as he became president in 2009.

Obama’s shout of ‘Geronimo Ekia’ as US SEALS shot down Osama in his Abottabad residence was echoed throughout the press. Geronimo Ekia being a military cry meaning – ‘we got, we got the man we were looking for’.

Pentagon thus finally avenged the hijacking of three planes on the unfateful day, the third planned at that time to bomb the defence HQ. With Osama bin Laden’s death America breathed at ease.  It ended ages of desperate international outcry and manhunt for the greatest terrorist of all time.

The island prison had long since been closed.

It was also a relief to them and to all those who had been affected by terrorist attacks, not forgetting even 26/11 at Mumbai. Mumbai attacks were the most dreadful to ever take place as a dozen or so terrorists held hundreds hostage at Taj President Hotel at Mumbai. Taj along with the Trident Oberoi, the Jewish home Nariman House and the Mumbai CST was one of the many sites that were terrorized that day.  Indian soldiers were successful in the capture of Ajmal Kasab, one of the many who were behind the attacks. Kasab was executed recently.

One thinks that why we have so many terrorist attacks all the time. Is it because of weak protection? Or weak resolve? Only we and we can stop such attacks if they happen in near future with a pinch of vigilance and some courage.

Because what we do, affects the nation.

Apple computer found in Junk!!!

Tech revolution

1976 gizmo found in junk, sold for $200,000.

One of the best stories doing the rounds as of now is this. Half of you may have already heard, but do so once more. A Silicon Valley recycling company recently found an Apple I computer in the junk sent to it by an old lady. One of the first 200 computers ever made by Steve Jobs and Joe Wozniak in their historic Garage Experiments. What happened later revolutionized computing forever. 

Apple Inc., now headquartered in a disc shaped office in Cupertino, California operates through 453 retail stores in 16 countries with a net worth of US$230 billion. It is responsible for the first PROPER smartphone, computer, tablet, and much more. 

Anyway, that is en passé. What I really meant to say was how far we have come. 20 years ago, we could not think of phones as objects beyond the reach of the rich. Today, your milkman can Whatsapp you he can’t come today. 

We are now building so much sophisticated technology that we would be soon smothered by all of it. We are now thinking of wearable technology. Virtual Reality. Holograms. And what not.

Sure, technology is set to reformat our lives a few years from now. It will delete our discomforts, Facebook our memories, and Pin our best moments. Technology has made life much easier. But seldom do we think how lazy we have become .

Courtesy evolving technology, technology has also shared with us some really harmful habits. We are all happy Couch Potatoes to huge HDTV’s in our homes. We are getting spine problems thanks to seeing our smartphones for long hours and browsing the net. The long list of problems from too much computer usage is endless.

Thanks to all our interesting gadgets, we are all living in a dangerous web of invisible radiations – the sort that machines use to communicate amongst themselves. It is highly hazardous for us and can cause great problems in the long run, altering body function and interfering with the brain’s ability to think. They can even lead to life -thereatening cancer among many other diseases on offer.

If only we used our computers to help us, we would have been far better off. I would not say that opening accounts on dating sites is not appreciable of the Indian Teen. Or liking that photo. Watching some content when alone. I only wanted to ask them to limit their use of the internet.

The internet is a valuable storehouse of information, meant to be used to help in the usually boring curriculum many of us are subject to in our schools (no offence). One finds educative content in plenty on offer. We can watch videos on those chapters we missed, solve those questions online which we didn’t understand. 

You may carry on your other stuff on other open tabs, but just limit the attention you give to them. You will get lots and lots of time later on, to view so much that you would be amazed.

The internet is so vast that it has powers to make, brake, destroy, bond, and what not. We see broken branches of the family meeting after generations. Seriously, I have a couple of Facebook friends who have been very helpful to us and have we have even spent vacations with them.

 You may also have that one friend in the neighbourhood whom you never had the chance to visit but chat with for long hours. You know what, just cycle down to his house and tell him that you came to meet him. That you remember him from old school days. Trust me, he will love it. Spend some personal time with him. Who knows, you might find in him the friend who will endure.

All I wanted to say is you should try to expand physically, not virtually. Stay away from Gadgetitis or it will seriously harm you. And can is C-A-N not cn. Just that, if technology is used in a great way, it would be awesome. But if you misuse technology, it will destroy you. Now look away from the screen or you will get eye strain.   


Stay blessed. - _a.pratham 
(always in smallcase, just to tell you how insignificant anyone is to the whole creation)