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Sunday, August 01, 2021

July 12, 1981, Forty Years Ago: Bank Rates Raised

The measures followed announcements on July 10 of an increase in the prices of wide range of petroleum products and imports of essential commodities. The President promulgated two ordinances, The Income Tax (Amendment) Ordnance and the Compulsory Deposit Scheme (Income Tax Payers) Amendment Ordnance.

By: Editorial |
July 12, 2021 3:38:34 am
The first ordnance stipulates that institutions holding public deposits shall make repayments exceeding Rs 10,000, including interest, only by way of account payee cheques or similar drafts.

In a major effort at flushing out black-money and stabilising the economy, the Government on July 11, issued two ordinances and raised the Bank rate to an all-time high of 10 per cent. The measures followed announcements on July 10 of an increase in the prices of wide range of petroleum products and imports of essential commodities. The President promulgated two ordinances, The Income Tax (Amendment) Ordnance and the Compulsory Deposit Scheme (Income Tax Payers) Amendment Ordnance. The first ordnance stipulates that institutions holding public deposits shall make repayments exceeding Rs 10,000, including interest, only by way of account payee cheques or similar drafts. This would make it difficult for people to undertake benami transactions.

More Violence In UK

Riots erupted in hitherto untouched cities and several new towns as the police in the British capital made 400 arrests after a government ban on demonstrations took effect in London on July 11. In an admission of her government’s helplessness, Prime Ministry Margaret Thatcher spoke of “fragility of Britain’s democracy in the face of riots”. Violence has spread to Nottingham, Hull, Newcastle, Birmingham, Wolverhampton, Sheffield and Preston. There were more incidents of violence in Manchester and Liverpool.

Pahadia Resigns

Rajasthan Chief Minister Jagannath Pahadia has submitted his resignation to the governor Raghukul Tilak. He has been asked to continue in office till a successor is designated. The Rajasthan Congress (I) legislators are slated to meet on July 14 to decide on Pahadia’s successors. “I am a disciplined soldier of Indira Gandhi, Rajiv Gandhi and the Congress (I) and will continue to function as such,” Pahadia said.

Arrests In Iran

Iranian authorities have arrested ex President Abolhassan Bani Sadr’s brother, Fathollah. Mostafa Entezarian, one of Bani Sadr’s close associates, has also been arrested.

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