All bank transactions to come  under govt radar: Gurumurthy

CHENNAI: Every transaction made in banks will soon be watched by the government, said S Gurumurthy, well-known commentator on political and economic affairs and the editor of Tamil magazine ‘Thuglak’ here on Friday.

Speaking at the annual lecture series organised by Shriram Properties, he said, “In India, in six months or so, you can never have banking transaction that does not go through the radar of the government.” No one can withdraw more than `2 lakh, away from its watchful eyes, he observed.

Through demonetisation, the government has brought down corruption and inflation, he said and added that it had changed the dynamics of the population. “There is a remarkable shift to financial savings,” he noted.

Gurumurthy said people would move from cash transaction to banks and cheques and the gold market too would hit a low as cash flow is reduced. “The government is also working on a new gold policy,” he said, adding that a fourth of all gold in India was in investment form. For the improvement of gold market, he suggested that the government float gold bonds for willing people to ensure that it had enough gold reserve for the next decade.

“As the Union government will have five to six tonnes of gold in the Reserve Bank, gold import will stop,” he said. India being a large importer of gold, the market will collapse if it stops buying the precious metal, he remarked.

Speaking about another offshoot of demonetisation, Gurumurthy said land prices had come under control. No policy could bring down the actual selling price of land in India, he said and added that demonetisation had brought this trend to a sudden halt. Advising realtors in the audience, he said, “Do not increase the land value. If you do, you’ll make money for the next two years and then, will be stagnant for five years thereafter.”