Implications of 1.5 Crore New Bank Accounts for the Economy

In his independence day speech on 15-Aug-2014, Prime Minister Narendra Modi announced an ambitious plan to ensure Financial Inclusion for all Indians. He has announced the Jan-Dhan-Yojana under which one bank account would be opened for every Indian family, that currently does not have a bank account.

On Thursday 28-Aug-2014, in under 2 weeks, a campaign was launched across India where the officials from all the banks set out to open accounts. It is estimated that on this single day about 1.5 crore new bank accounts where opened by the different banks across the length and breadth of the nation.This was coupled with an equal number of accident insurance policies.

In six months, each of these accounts will have an overdraft facility of Rs. 5000/-.

Just imagine the total amount that will come into circulation. If this entire amount is used by the account holders, Indian markets will have about Rs. 7500 crore within each of these account holders that could be used by them after six months for retail purchases.

Landmark Decision by Supreme Court On Allocation of Coal Block

Today, the Supreme Court has declared that allocation of coal blocks since 1993 illegal.

The issue of allocation of coal-blocks shot into limelight in 2012 when the Comptroller and Auditor General of India (CAG) raised questions on the process of allocation of coal blocks during UPA-II. CAG had tagged a loss of 1.86 lakh crore rupees to the exchequer.

Since then a lot has happened connection with this scandal, that was subsequently referred to by the media as the Coalgate scam.

In the most recent development the Supreme Court has, today, delivered a verdict that is bound to have a far reaching impact on the national economy. All the coal blocks allocated since 1993 have been declared illegal because the process followed was non-transparent and dodgy.

The prices of stocks linked to the Coalgate tanked today after the decision was announced.