We hear from President of opposition party about Note Ban,GST,NPA, Nirav Modi etc in public rallys. I decided to gather information under one roof. After reading it I realized why it was compulsion for present NDA government to go for NoteBan? Why it faced sever cash crunch?
As per data available on RBI website following was the economic situation as on December,2014. It means when Dr.Manmohan Singh left as Prime Minister this was economic scenario.
At end-December 2014, India’s total external debt stock was US$ 461.9 billion, recording an increase of US$ 15.5 billion (3.5 per cent) over the level at end-March 2014 (Table 1). Long-term external debt increased by 6.1 per cent to US$ 376.4 billion. As a proportion of total debt, long-term debt was 81.5 per cent. Short-term debt on the other hand recorded a decline of 6.7 per cent during the period and stood at US$ 85.6 billion at end December 2014. Short-term debt constituted 18.5 per cent of the total external debt at end-December 2014. Annex I and II present the quarter-wise
Dis-aggregated data on value of external debt outstanding in terms of the Indian rupee and the US dollar, respectively.
External Debt by Original Maturity
Long-term debt at US$ 376.4 billion accounted for 81.5 per cent of the total external debt at end-December 2014. Long-term debt recorded an increase of 6.1 per cent at end-December 2014 over the period at end-March 2014 due to rise in commercial borrowings and NRI deposits.
Commercial borrowings and NRI deposits taken together accounted for 60.8 per cent of total external debt (long-term and short-term) at end-December 2014 as against 56.8 per cent at end-March 2014.
Other components of long-term external debt, however witnessed decline at end-December 2014 over end-March 2014 level.
Short-term debt at end-December 2014 witnessed decline over end-March 2014 level due to debt component of FII flows and trade related credit. Short-term debt declined by 6.7 per cent to US$ 85.6 billion at end-December 2014 over the end-March 2014 level. The share of short-term in total external debt was 18.5 per cent at the end of December 2014, vis-a-vis 20.5 per cent at end-March 2014. It means UPA government reduced short term loan but
As on 2016 India’s World Bank Loan was $36,348,018/-
Oil Pool Account – It is the account into which all revenues earned by the public sector oil companies are deposited and expenditures like subsidies are charged. As part of the dismantling of the APM, the oil pool account has been terminated in 2002.
The Government issued bonds in 2002 aggregating Rs 9,000 crore to the state-owned oil companies to liquidate a substantial part of their dues in the oil pool account.
Total Gross Advances as on 2013 by Banks were Rs 5371151/- ( In Crores) out of which 183,854/-( In Crores) was NPA.
During third phase of growth of UPA government of Dr.Manmohan Singh 2009 to 2012: During this period, growth in credit as well as NPAs slowed down in 2010. However, by end-March 2012, there was a sharp contrast in the movement of both, with credit growth witnessing a sharp contraction and growth in NPAs trending up. NPAs grew at around 46 per cent as at end March 2012, far outpacing credit growth of around 17 per cent. This widening divergence in the growth of credit and NPAs has implications for the asset quality in the near term. The decline in credit growth during this period could be attributed to the general economic slowdown that set in as a result of combination of domestic and global factors.
As per RBI Working Paper Series No. 03 Re-emerging Stress in the Asset Quality of Indian Banks: Macro-Financial Linkages @Shashidhar M. Lokare dated 7th February,2014 in concluding remarks observed that:
VIII. Concluding Remarks
In a bank dominated economy like India, the stability and sound health of the banking system is imperative for overall economic development and financial stability. The Indian banking sector overtime has witnessed significant transformation and has proved to be sound and resilient, even in the face of one of the worst financial crisis that hit the world economy during 2008. Nevertheless, of late, the asset quality of Indian banks has come under growing pressure.
Asset quality exhibits increasing signs of stress
The first half of the last decade turned out to be a good period for Indian banks, with credit growth witnessing a sharp upturn on the back of high economic growth and NPAs growth trending down quite significantly. The second half of the last decade encountered a period of slowdown in credit growth accompanied by gradual deterioration in asset quality, particularly by the turn of the decade. Accretion to NPAs, a critical indicator of efficiency in credit risk management, remained negative in most of the years prior to the year 2008 but expanded quite rapidly thereafter.
Pro-cyclical evidence: credit boom in the pre-crisis period, partly driving the asset quality impairment
It has been argued in the literature that an expansion in credit growth is associated with the deterioration in asset quality because when banks over-expand their lending, they tend to lower their credit standards. In the Indian context, the empirical analysis indicates that NPAs growth follows credit growth with a lag. This underlined the pro-cyclical behaviour of the banking system, wherein asset quality can get compromised during periods of high credit growth and this can result in NPAs in the later years. Thus, high credit growth during the pre-crisis period resulted in the rise in NPAs overtime in the post-crisis period. Hence, pro-cyclicality of credit pattern during the pre-crisis period could be considered as one of the factors responsible for asset quality deterioration during the recent years.
Growth slowdown adding to the stress on asset quality
While examining the macro-financial linkages of this phenomenon, it is found from the empirical exercise that NPAs growth is inversely related to the GDP growth. In case of agriculture too, NPAs growth was found to be inversely associated with growth in agricultural GDP with a lag. The relationship between credit growth, NPAs and business cycle was broadly of the same nature in case of industries. The cyclical slowdown exerts strain on the performance of various sectors of the economy and adversely affects the cash flows of borrowers, thereby leading to defaults in loan repayments. Therefore, economic slowdown in recent years has contributed to the increasing stress on the asset quality of Indian banks.

Hardening of lending rates contribute partially to growing NPAs
The changes in lending rates of banks may also cause changes in NPA levels. Hardening of interest rates makes repayment of loans difficult for borrowers, particularly those who have contracted their loans earlier at floating rates, for instance in the case of housing loans. The empirical investigation in this paper corroborates the fact that growth in NPAs is likely to go up in the backdrop of elevated interest rate environment. Thus, hardening of interest rates in the recent times seems to have contributed partially to growing NPAs.
Rising inflation adding to asset quality problems
It is not only that high inflation feeds into nominal interest rates, making debt servicing more onerous, it also erodes the disposable incomes and impinges on the repaying capacity of borrowers. The evidence in the literature, as seen earlier, corroborates the fact that banks’ write‐off ratio increases after increase in retail price inflation and nominal interest rates. The empirical exercise in this paper confirms that rising prices in the recent years are contributing to the asset quality problems.
Dwindling asset prices exerting pressure on asset quality
Asset prices as reflected in stock prices can influence the net worth of borrowers through wealth effect and in turn affect the debt servicing capacity. This fact is evident both from the extant empirical literature and empirical exercise carried out in the Indian context in this paper. Higher asset valuations are associated with lower levels of NPA ratios and vice-versa. The dwindling asset prices in an uncertain financial market environment, particularly in the aftermath of crisis are contributing to the asset quality deterioration.
Subdued global macroeconomic situation adding to the asset quality woes
A buoyant external macroeconomic environment matters for the overall profitability and asset quality of banks, since positive externalities flowing from positive external environment can feed into domestic macroeconomic performance through trade, confidence and financial sector channels. The exploration of relationship between world GDP growth and NPAs growth in this study corroborates the above fact. The subdued world economic growth has a bearing on asset quality impairment.
Non-priority sector contributes substantially to weakening asset quality
Sectoral analysis reveals that, on an average, retail loans occupy the largest share in total NPAs followed by SSIs, agriculture, personal loans, housing loans, exports, credit cards and auto loans over the last one decade. Arguably, non-priority sector has contributed significantly to acceleration in total NPAs in the recent period.
Growing share of agriculture in total NPAs
Interestingly, share of agriculture (average) in total NPAs remains lower than that of SSIs and other priority sectors. Nevertheless, the share of agriculture and other priority sectors in aggregate NPAs increased, while that of SSIs declined during the post-crisis period. Nevertheless, NPAs growth in SSI sector has accelerated sharply in recent years, thereby contributing to rise in overall NPAs.
Personal loans account for the bulk of retail NPAs
In respect of non-priority sector, NPAs in the retail loan segment have declined overtime, but their share in total NPAs remains high. In the retail loan segment, personal loans constitute for the bulk of the share. It is noteworthy that retail credit growth including personal loan portfolio of banks had shown a spurt in the pre-crisis period, partly due to removal of restrictions on personal loans in the early 1990s. Buoyant economic growth and ‘wealth effect’ of surging capital markets were the major triggers for growth in consumer loans. Increasing demand, rising income levels, probability of low default and comfortable liquidity in the banking system created huge potential for housing finance business.

Infrastructure and power witness escalation in asset quality impairment
The share of infrastructure in non-priority sector NPAs has accelerated in the recent times. The relaxed norms for infrastructure lending and enhancement of exposure limits have resulted in rapid expansion in infrastructure finance in recent years. The power sector has seen a significant increase in impairments in the asset quality in the recent period, owing to rising losses and debt levels in SEBs and the shortage of fuel availability for power generation. With losses among SEBs and coal/ delay issues of power projects, high concentration of bank credit in power generation and distribution is a matter of concern.
Spillovers from global crisis and muted performance of industries fed in to the growing deterioration of asset quality
The impact of the global financial crisis spilled over to industry and businesses, especially the SME sector, which had to grapple with a host of problems other than fall in investment demand; and demand compression for employment-intensive industries, such as gems and jewellery, construction and allied activities, textiles, auto and auto components and other export-oriented industries. These developments got reflected in growing deterioration in the asset quality in respect of many industries in the post-crisis period. Among the industries, coal and textiles have contributed substantially to recent deterioration in asset quality. The other industries that contributed to rising NPAs include iron and steel, other textiles, jute textiles, cotton textiles, computer software, leather and leather products, sugar, tobacco, rubber, metals, construction and vegetable oils and vansapati industry.
Public sector banks and foreign banks mainly contribute to recent acceleration in NPAs
The bank group-wise assessment of trends reveals that though public sector banks contribute to the bulk of NPAs, the share of new private sector banks and foreign banks in the total NPAs has gone up in the post-crisis period. Nonetheless, public sector banks and foreign banks have mainly contributed to the recent rise in NPAs. Public sector banks and old private sector banks have witnessed greater deterioration in their asset quality in the case of priority sector, while it is vice-versa in the case of foreign banks and new private sector banks
Restructuring provides a transitory respite but needs to be monitored prudently
Though restructuring of advances was helpful in containing the effect of rising bad loan in banks’ balance sheet, in the long-run, it could have implications for asset quality of the banks, in case significant proportion of these restructured advances turn out to be bad loans. Hence, there is a need to carefully monitor the impact of restructuring on asset quality of banks in the medium to long run.
Inadequate appraisal and lax monitoring resulting in asset quality impairment
The spurt in NPAs could also be attributed to the inadequate appraisal and monitoring of credit proposals (RBI, RTP, 2011-12). As noted by the FSR (December 2012), aggressive lending by banks in the past, banks not exercising oversight on diversification into non-core areas by companies, banks not enforcing discipline on companies regarding unhedged forex exposures and delay in disbursements are areas on which banks ought to exercise much better control. Delay in administrative clearances is an equally important reason for pressure on asset quality which needs correction. There is a need to strengthen oversight of financial and corporate risks and policies to incentivize genuine corporate restructuring and improvements to insolvency framework.
Further strains on asset quality could emerge given the subdued growth prospects and global uncertainties
Going forward, further strains on asset quality could emerge. The macro stress test, as stated in FSR (December 2012), suggests that if the current adverse macroeconomic condition persists, the system level gross NPA ratio could rise from 3.6 per cent as at the end of September 2012 to 4.4 per cent by end March 2014. This ratio could go up to 7.6 per cent under the severe risk scenario. Public sector banks might continue to register highest NPA ratio.
The growth prospects in the near- term seem to have subdued. In October 2013, the IMF scaled down its projection of world GDP growth for 2013 to 2.9 per cent.
{Note: have heard opposition party President saying time and again that present government GDP has fallen so employment. But look at the RBI report. During UPA Government GDP was 2.9 per cent}
In its First Quarter Review of Monetary Policy 2013-14, the RBI has also revised its growth projection for 2013-14 downwards to 5.5 per cent. Credit growth in the recent period has ebbed and as per the RBI’s indicative projections, the non-food credit growth is likely to be around 15.0 per cent in 2013-14. Thus, notwithstanding the fact that credit growth is not going to be significantly robust, muted economic prospects and global headwinds could lead to further deterioration in asset quality.
Need to address the problem in right earnest
The stress tests for banks show that even under a scenario in which 30 percent of restructured advances become NPAs, bank stress remains contained and banks sufficiently capitalized. The position is not alarming at the current juncture and some comfort is provided by the sound capital adequacy of banks, which ensure that the banking system remains resilient even in the unlikely contingency of having to absorb the entire existing stock of NPAs. Nevertheless, it is worth to recognise the problem in its early stages and initiate corrective measures in the right earnest.
Key Features of India’s BoP ( Balance of Payment) in Q4 2014-15
• On a quarter-over-quarter (q-o-q) basis, India’s current account deficit (CAD) narrowed sharply to US$ 1.3 billion (0.2 per cent of GDP) in Q4 of 2014-15 from US$ 8.3 billion (1.6 per cent of GDP) in Q3; on a year-on-year (y-o-y) basis, however, the CAD was a shade higher (US$ 1.2 billion or 0.2 per cent of GDP in Q4 of 2013-14).
• The merchandise trade deficit (US$ 31.7 billion during Q4 2014-15) contracted sharply on a q-o-q basis on account of a larger decline in merchandise imports (13.4 per cent) than in merchandise exports (10.4 per cent); however, in terms of y-o-y changes, the trade deficit in Q4 2014-15 widened marginally as exports registered a larger decline (15.4 per cent), than imports (10.4 per cent).
• The reduction in the CAD in Q4 2014-15 was primarily on account of lower trade deficit as net earnings through services and primary income (profit, dividend & interest) witnessed a decline in q-o-q terms albeit secondary income recorded a marginal increase of 0.4 per cent.
• Gross private transfer receipts, representing remittances by Indians employed overseas amounted to US$ 17.5, witnessing a marginal increase of 0.4 per cent on q-o-q basis and an increase of 1.2 per cent from the level a year ago.
• In the financial account, net inflows of foreign direct and portfolio investment were higher on a q-o-q basis, though net loans availed by banks witnessed an outflow US$ 3.5 billion mainly on account of increase in balances of foreign currency assets held abroad by banks.
• During Q4 of 2014-15, on a BoP basis, there was highest ever net accretion of US$ 30.1 billion to India’s foreign exchange reserves in a single quarter; it was more than double the accretion in the preceding quarter and almost four times of the reserves accrued in Q4 of 2013-14 signifying record increase in capital inflows and dip in current account deficit.
BoP during April-March 2015
• On a cumulative basis, the overall BoP during 2014-15 showed improvement over the preceding year. Lower CAD, on the back of contraction in trade deficit and marginal improvement in the net invisible earnings, along with a sizable increase in net financial flows enabled a large build-up of reserves.
• India’s trade deficit narrowed to US$ 144.2 billion in 2014-15 from US$ 147.6 billion in 2013-14. With modest increase in invisibles supported by some improvement in net services receipts, the CAD tracked the trade deficit and shrank to US$ 27.5 billion in 2014-15 (1.3 per cent of GDP) from US$ 32.4 billion (1.7 per cent of GDP) a year ago.
• Net inflows under the capital and financial account (excluding change in foreign exchange reserves) rose to US$ 89.5 billion during 2014-15 from US$ 48.7 billion in the previous year.
• There was an accretion to India’s foreign exchange reserves to the tune of US$ 61.4 billion in 2014-15 as compared with US$ 15.5 billion in 2013-14.
• At the end of March 2015, the level of foreign exchange reserves stood at US$ 341.6 billion.
My Comments:
• It means that in A.Y 2012-2013 itself Bank NPA was of Rs. 183,854/- ( In Crores) As prudent banker the RBI gave red signal by making warning statements that, “asset quality of Indian Banks are under stress” . The erstwhile government failed to curb loan as well as get recovery thereof. This negligence or ineffective handling of bank funds have cascading subsequent effects, which we saw in form of slow down. The loans were given for non- earning sector or say majority loans were for luxury and leisure which do not generate any further industrial out put or further income.
Recent Data Trend
India’s current account deficit (CAD) worsened to USD 13 billion (1.9% of GDP) during Jan-Mar’18 (Q4 FY18) from a level of USD 2.6 billion (0.4% of GDP) in the corresponding quarter a year ago. The widening of CAD was on account of a rise in crude oil prices which resulted in a widening trade deficit. The merchandise trade deficit rose to USD 41.6 billion in Q4 2017-18. The surge in crude oil prices increased the import bill for India. During the concerned period, the global crude oil price rose by 19% in the last one year.
Despite the soaring CAD, the forex reserves grew by USD 13.2 billion in Q4 FY18 due to a stronger capital account surplus. This was greater than the addition of USD 7.2 billion to the forex pool in the year-ago period.
The capital and financial account surplus rose to USD 11.8 billion in Q4 2017-18 from USD 3 billion in Q4 2016-17, supported by stronger FDI and portfolio investment inflows worth USD 8.7 billion.
In annual terms, the CAD rose to USD 48.7 billion in FY18 from USD 15.3 billion in FY17. The CAD as a % of GDP has more than tripled in the last one year to 1.9% of GDP in 2017-18 from 0.6% of GDP in 2016-17. The rise in import bill due to rise in the crude oil prices augmented by 18% YoY increase in the non-oil imports led to the widening of CAD in FY18. The soaring of CAD was mitigated to some extent by net portfolio investment inflows of USD 22.1 billion more than thrice the USD 7.6 billion in FY17.
With the CAD soaring the rupee is likely to witness a downward pressure, which has already fallen by 5.5% against the USD in 2018. We believe, that CAD rising is surely a concern but it is still within manageable limits. However, with crude oil prices on the rise, the road ahead would surely be turbulent. The only respite we have as of now is the healthy cushion of forex reserves of more than USD 410 billion.
As per statement give in Parliament Finance Minister Mr.Arun Jaitley on question asked on Bank NPA said that, the bulk of NPAs of banks have arisen out of loans given before April 1, 2014, due to aggressive lending and without proper risk assessment and even without being backed by securities. Finance Minister Arun Jaitley made it clear in parliament that the government has not written off any bank loan and the liability of the borrowers for repayment of these loans remained.
With this RBI official data we turn to major bad loans which are now NPA and have affected our economy badly.
Bad Loans
Vijay Mallya
As per newspaper reports The Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) has filed charge sheet against Vijay Mallya for allegedly transferring a of Rs 6,027-crore loan he took for his now-defunct Kingfisher Airlines to shell companies in seven countries.
The money was allegedly diverted to shell companies in seven countries, including the US, UK, France and Ireland. However the investigating agencies did not disclose the exact amount laundered to offshore shell companies by Vijay Mallya.
Out of this State Bank of India (SBI) has leading NPA of Rs 1,600 crore, other public-sector banks that gave loans to Kingfisher are Punjab National Bank with an exposure of Rs 800 crore, Bank of India (Rs 650 crore), Bank of Baroda (Rs 550 crore), Central Bank of India (Rs 410 crore), UCO Bank (Rs 320 crore), Corporation Bank (Rs 310 crore), State Bank of Mysore (Rs 150 crore), Indian Overseas Bank (Rs 140 crore)

Nirav Modi
As per reports Allahabad Bank has the largest exposure—of over Rs4,000 crore. Union Bank has anywhere between Rs1,000 crore and Rs2,000 crore, and the State Bank of India about Rs1,000 crore. Axis Bank has over Rs2,000 crore, though it has already sold off those loans. All these loans were given during 2011 and at least 2017. It was detected in the third week of January 2018, according to the PNB management which approached the Central Bureau of Investigation on January, 29.

Jatin Mehta
The Central Bureau of Investigation also filed a charge-sheet against absconding diamond merchant Jatin Mehta, two former chairman and Managing Directors of the Canara Bank and 18 entities for allegedly cheating the bank of Rs 146 crore,. The agency has also sought an Interpol Red Notice against Mehta. Mehta, who was the promoter of Winsome Diamonds and Jewellery Ltd, owes around Rs 6,800 crore to a consortium of banks, but obtained citizenship in the Caribbean nation of St Kitts and Nevis along with his wife, Sonia Mehta, in 2013-’14. India does not have an extradition treaty with that country. The then Dr.Manmohan Singh government also permitted them to give up their nationality despite of huge outstanding loan.
12 Companies on RBI List as Major Defaulter declared by present NDA Government:
Here are the companies identified by RBI for immediate bankruptcy proceedings:

Bhushan Steel Ltd: Bhushan Steel, the largest manufacturer of auto-grade steel in India, has a loan default of Rs 44,478 crore. The State Bank of India (SBI), the lead bank of the consortium of lenders, had moved the NCLT for recovery of its loan. Lanco Infratech Ltd: Lanco Infratech, once listed among fastest growing in the world, has a loan default of Rs 44,364 crore. IDBI has already initiated the process under the Insolvency and Bankruptcy Code against company’s loan defaults.
Essar Steel Ltd: Essar Ltd, one of the biggest in India and abroad in the steel sector, has a loan default of Rs 37,284 crore. While there were 11 other companies staring at same fate as Essar Steel, it chose to challenge RBI’s direction in the Gujarat High Court, which was later dismissed. Essar claimed it belonged to 488 companies which were given six months time to restructure their debt.
Bhushan Power & Steel Ltd: Bhushan Power and Steel, a sister company of Bhushan Steel, also has a loan default of Rs 37,248 crore. Bhushan Power and Steel was dragged to the NCLT by the Punjab National Bank. The NCLT has also reserved its order on the plea.
Alok Industries: Alok Industries, which is a Mumbai-based textile manufacturing company, has a loan default of Rs 22,075 crore. The NCLT, in July, admitted insolvency proceedings against the company filed by State Bank of India for recovery of its Rs 3,772 crore loan. Other lenders include Punjab National Bank, Bank of Baroda, IDBI Bank, Standard Chartered Bank etc.
Amtek Auto Ltd: Amtek Auto, one of the largest integrated component manufacturers in India, has a loan default of Rs 14,074 crore. SBI had moved the NCLT for bankruptcy proceedings against the bank, which was admitted by the Chandigarh bench.
Monnet Ispat and Energy Ltd: Monnet Ispat and Energy, one of India’s steel producers have a loan default of Rs 12,115 crore. The bankruptcy proceeding against the company was approved by NCLT in July.
Electrosteel Steels Ltd: Electrosteel Steels is an Indian water infrastructure company based in Khardah near Kolkata. The loan default by the company stands at Rs 10,273 crore. Consortium leader SBI had initiated insolvency proceedings, which was admitted by NCLT.
Era Infra Engineering Ltd: Era Infra Engineering, one of India’s infrastructure companies, has a loan default of Rs 10,065 Crore. Union bank had moved the NCLT against the company, but the tribunal reserved its order over jurisdiction issues. There are many winding-up petitions pending in the Delhi High Court against the company which has superior jurisdiction over NCLT.
Jaypee Infratech Ltd: Jaypee Infratech is a subsidiary of conglomerate Jaypee Group founded by Jaiprakash Gaur. It has a loan default of Rs 9,635 crore. In August, NCLT had admitted insolvency petition filed by IDBI bank, but the Supreme Court stayed the order after home buyers filed petitions against the move. The company is now seeking to sell Yamuna Expressway to raise Rs 2,500 crore to compensate homebuyers.
ABG Shipyard Ltd: ABG Shipyard, an Ahmedabad-based shipbuilding company, has a loan default of Rs 6,953 crore. The company is one of the two companies among the 12 which has agreed to loan default and bankruptcy proceedings initiated by the banks.
Jyoti Structures Ltd: Jyoti Structures, a power transmission and distribution company, has a loan default of Rs 5,165 crore. The company became the first among the 12 companies to face the bankruptcy proceedings. The petition for insolvency was filed by its lead lender SBI. Like ABG Shipyard, Jyoti Structures did not oppose the bankruptcy proceedings against it.
( Data Curtsey Financial Express 23rd October,2017)
Oil and Crude
CEIC Report
India’s Crude Oil: Imports was reported at 4,308.30 Barrel/Day th in December, 2016. This records an increase from the previous number of 3,935.50 Barrel/Day th for December 2015. India’s Crude Oil: Imports data is updated yearly, averaging 2,078.15 Barrel/Day th from December 1995 to 2016, with 22 observations. The data reached an all-time high of 4,308.30 Barrel/Day th in 2016 and a record low of 602.50 Barrel/Day th in 1995.
PIB- Statement on Iran Oil Payments 03-March-2011
Payment of 1.5 Billion Euro made for Crude Oil imports from IRAN
The earstwhile Minister of Petroleum & Natural Gas Shri S. Jaipal Reddy informed the Lok Sabha in a written reply said that pending dues of National Iranian Oil Company (NIOC) for import of crude oil are now being cleared and as of 1.3.2011, payment of Euro 1.5 billion has been made to the Central Bank of Iran.

However when present NDA Government took over huge amount of Iran Oil bill was outstanding. India offered to pay in Indian currency due to USA sanctions on Iran due to nuclear policy. When present PM visited Iran last year , Indian refiners have made first euro payments in four years to clear a part of the $6.4-billion (nearly Rs 43,000 crore) in past oil dues. Mangalore Refinery and Petrochemicals Ltd (MRPL) has paid $500 million (nearly Rs 3,326.38 crore) and Indian Oil Corp (IOC) $250 million (nearly Rs 1,663.18 crore) over the past two days, sources with direct knowledge of the development said. Private sector Essar Oil is to pay $500 million. ( As per DNA Repot)
Considering over all scenario it appears that #NoteBan or #Demonetisation was the only option to bring idle money in to Banking system. Had NDA government not resorted to #NoteBan or #Demonetisation country would have faced cash dry Economy with extreme financial crunch due to huge NPAs discussed above which they inherited from the previous government of Dr.Manmohan Singh.
All the above data is taken from official website of RBI and public website. Above data is just a compilation of various information available on networking sites.

Shruti Desai
19th July,2018