Tax treatment of demonetised cash: deposits lack immunity and source must be disclosed; illegal funds face scrutiny.
Deposits of demonetised high denomination currency into bank accounts do not confer tax immunity; the law applies to the source of such funds. Legitimate, previously disclosed savings need not worry, but illegal proceeds, crime money or bribes will face disclosure requirements and enforcement. The deposit route enables exchange for new notes but is not relief from taxation; the policy aims to increase tax compliance, digital transactions, and the formalisation of the economy.

Demonetisation of high denomination notes removes legal tender status and prescribes exchange, deposit and withdrawal procedures.
Discontinuation of legal tender status for specified high denomination banknotes invalidates those notes for general payments and creates a structured regime for exchange, deposit and withdrawal through designated central bank offices, bank branches and post offices subject to identity and documentation; small over the counter exchanges are allowed while larger amounts must be credited to bank accounts, with limited exceptions for essential services and foreign tourist exchange.

Withdrawal of legal tender: high denomination notes cease to be legal tender; exchange permitted at banks/RBI subject to cash limits.
The notification withdraws the legal tender character of specified high denomination banknotes and permits exchange at RBI issue offices, bank branches and designated post offices; cash payment is limited per person while amounts exceeding that ceiling are to be credited to bank accounts. Banks will accept deposits including via cash deposit machines and recyclers; electronic payment channels are encouraged. Representatives may tender notes with written authorization and valid identity proof. A time limited exchange window is established with a subsequent RBI facility for late exchanges subject to documentation.

Withdrawal of legal tender status requires exchange or deposit of affected banknotes under prescribed identity, deposit and cash withdrawal limits.
Withdrawal of legal tender status for specified banknotes requires holders to tender them at Reserve Bank offices or bank branches for credit or limited over the counter exchange on production of valid identity; credited funds may be used by cheque or electronic transfer while cash withdrawals and ATM dispensation are temporarily subject to prescribed daily and weekly limits, with ATMs recalibrated and an extended facility for late deposits to be provided at designated Reserve Bank locations.

Withdrawal of legal tender for specified high denomination notes triggers deposit and limited cash exchange regime with withdrawal and ATM restrictions.
Withdrawal of Legal Tender status for specified high-denomination Mahatma Gandhi series banknotes permits holders to tender such notes at Reserve Bank offices or bank branches for value credited to bank accounts, with a limited over-the-counter cash exchange available upon presentation of valid identity. Credits may be used by cheque or electronic transfer; cash withdrawals and ATM disbursements are subject to temporary quantitative restrictions pending recalibration. The public is referred to official RBI and government websites for details.

Currency demonetisation: high-denomination notes withdrawn as legal tender with structured deposit, exchange and withdrawal rules.
Announcement withdraws specified high-denomination banknotes as legal tender from midnight 8 November 2016 and establishes an administrative regime for conversion: a timed deposit window at banks and post offices, limited immediate exchange counters requiring approved identity proofs, a later deposit facility at specified Reserve Bank offices with declaration, staged ATM and withdrawal limits, temporary humanitarian acceptance at designated public services for a short period, and issuance of redesigned notes by the Reserve Bank with a policy to limit the share of high-denomination currency.

Demonetisation of high-denomination currency notes; new denominations issued and deposit limits, cash withdrawals restricted temporarily.
The Government withdrew legal tender status for specified high-denomination notes, issued new denominations including a new high-denomination note, and provided a limited window to deposit or exchange withdrawn notes through banks and post offices while imposing short-term ATM and bank withdrawal limits; limited humanitarian acceptance of withdrawn notes at specified public service points is permitted and non-cash payment methods remain unrestricted.

Financial inclusion reform expands access via technology, BCs, Aadhaar-linked accounts and demand-side literacy to deepen formal finance.
RBI advances financial inclusion through technology-enabled supply-side measures-Banking Correspondents, mandated branch expansion in unbanked rural centres, Aadhaar-enabled Basic Savings Bank Deposit Accounts, Board-approved Financial Inclusion Plans, differentiated licences for Small Finance and Payments Banks, and a BC registry and certification-while complementing these with demand-side interventions such as financial literacy centres, skill training institutes, and Direct Benefit Transfer linkage to increase account usage and financial capability.

Non performing assets management: stronger credit risk frameworks and timely resolution to restore bank resilience and lending capacity.
Non-performing assets and stressed loans have surged, concentrated in industry, infrastructure and large borrowers, caused by weak underwriting, high promoter leverage, inadequate post disbursement supervision and excessive reliance on loan restructuring to postpone recognition. Effective credit risk management requires robust underwriting, independent second line risk functions, strict sanction discipline, timely classification and resolution of stressed accounts, portfolio diversification and committed board and senior management oversight. Regulatory measures include a large loan database for lender coordination, restructuring and resolution schemes that separate sustainable debt, incentives for timely action, governance reforms and capital support to restore bank resilience.

Benami Transactions law strengthened: expanded definitions, provisional attachment, adjudication and confiscation procedures, and new appellate and special courts.
The Amendment expands definitions and creates a structured enforcement regime: Initiating Officers and Approving Authorities may issue notices, provisionally attach suspected benami property with approvals and limited retention of documents; Adjudicating Authorities (constituted with specified qualifications and benches) adjudicate references, may confirm attachment and order confiscation vesting title in the Central Government; an Appellate Tribunal and Special Courts are established for appeals and prosecutions; offences and penalties for benami transactions and false information are prescribed, with specified procedural safeguards and rule-making powers.

Benami prohibition: amendments strengthen confiscation powers and procedural mechanisms while granting immunity to declarants under declaration scheme.
Amendments reinforce the statutory regime against benami transactions by clarifying legal and administrative procedures to enable effective implementation, empower authorities to confiscate benami property following due process, and provide immunity for those who disclose benami holdings under the income declaration scheme.

Finance Bill debate and appropriation measures scheduled, prompting consideration of demands for grants and multiple legislative amendments.
Parliament convenes from April 25 to May 13, 2016 to complete financial business, prioritising consideration and passage of the Finance Bill, 2016 and the Railways Appropriation Bill, 2016, along with debates on Demands for Grants in Lok Sabha and examination of ministry workings in Rajya Sabha; the legislative programme lists multiple bills pending committee reports or transmission between Houses, and the agenda includes ratification of a Presidential Proclamation and two ordinances.

IMF quota review urged to boost developing countries' voice; calls for World Bank shareholding review and action on tax havens.
G-20 discussions urged a review of IMF quotas and World Bank shareholding to increase developing countries' voice; recommended leveraging Multilateral Development Banks' balance sheets to mobilise infrastructure investment; and committed to stronger measures against tax havens, corruption, tax evasion, terrorist financing and money laundering. Bilateral meetings sought increased World Bank financing capacity, greater representation of developing country nationals in senior management, support for regional connectivity and large infrastructure projects, and enhanced tax information sharing to address cross border financial flows.

FDI in e commerce permits automatic foreign investment for B2B and conditions B2C retail online sales.
Enforcement under FEMA investigates alleged contraventions of FDI norms in e commerce. Regulations permit full foreign investment under the automatic route for Business to Business e commerce. Business to Consumer e commerce is allowed in a calibrated manner: manufacturers may sell domestically produced goods online; single brand retail entities with physical stores may sell online; and Indian investee companies owning a brand may sell their own single brand products online provided they manufacture the requisite majority domestically and source the remainder from domestic manufacturers.