India May Privatise or Shut 46 PSUs in First 100 Days, Says NITI Aayog's Rajiv Kumar----We should start with the banks

In the first 100 days of Indian Prime Minister Narendra Modi’s second term, a slew of ‘big-bang’ economic reforms that should please foreign investors are likely to be pursued, according to a top official at the government’s main think-tank.

The reforms will include changes in labour laws, privatisation moves and creation of land banks for new industrial development, said Rajiv Kumar, vice chairman of NITI Aayog (National Institute for Transforming India), who reports directly to Modi.

“They (foreign investors) will have reasons to be happy. You will see a slew of reforms I can assure you of that. We are going to pretty much hit the ground running,” Kumar told Reuters in an interview.

Modi is the chairman of the think-tank.

Modi and his Bharatiya Janata Party (BJP) were declared last week landslide winners of India’s general election with an increased majority in the lower house of parliament.

He was sworn into office for his second term on Thursday night.

Kumar was speaking before Modi on Thursday announced members of his new cabinet, though he hasn’t said who will get which portfolio. Several Indian media outlets say that BJP president Amit Shah will become the country’s new finance minister.

NITI Aayog, which now acts as the main centre for policy making and for driving new ideas, was founded four years back when Modi scrapped the 65-year-old planning commission, saying that India was stifled with Soviet-style bureaucracy.

Kumar said that reforms in India’s complicated labour laws will see the light of day as early as the next parliamentary session in July, when the government will place a new bill before the lower house for approval.

It will aim to combine 44 central laws into four codes – wages, industrial relations, social security and welfare, and the fourth – occupational safety, health and working conditions.

This should help companies avoid getting embroiled in a series of complicated disputes with their workers and officials that involve regulations set by authorities at different levels of government and can lead to long, drawn-out adjudication in various parts of the legal system.

The government could also offer swathes of land to foreign investors from the land banks it plans to create from unutilised land controlled by public sector enterprises, Kumar said.

Also read: Modi 2.0 Must Get Cracking on Jump-Starting India’s Economy

“What could be attempted is to build an inventory of government land that can then be offered to foreign investors,” Kumar said.

The land parcels could be designed as clusters catering to a specific set of investors or industrial sectors, Kumar said.

Getting access to some of the large amounts of unutilised Indian government land would reduce major risks for foreign companies as there would be a lot less risk of legal challenges over ownership and development. A lot of the sites they have used in the past was previously farmland, opening them up to protests and court action by local communities over land rights, the environment and other issues.

Kumar said that the government will focus on fully privatising or closing more than 42 state-controlled companies in the coming months. The government is even mulling lifting the foreign direct investment cap on Air India, the loss-making state-owned flagship carrier, to make it easier to sell.

Kumar also said that it could create an autonomous holding company that would control all state-owned firms and wouldn’t be answerable to lots of different ministries. This would speed up decision making for asset sales, avoiding much of the central government’s bureaucracy.

Big bang

India’s economic growth rate decelerated to a five-quarter low of 6.6% in the last three months of 2018, and is expected to fall further in the January-March quarter due to a sharp drop in consumption.

The economy needs far faster growth if it is to generate enough jobs for the millions of young people entering the labour market each month.

Kumar blamed the stressed balance sheet of banks and a crisis in the shadow lending industry for the recent drop in growth.

He suggested that the government should start with reforming the state-owned banking sector and also create more money for spending on infrastructure and new public housing through more and quicker privatisations and better tax collection.

“We should (start with the banks)..There will be big bang, there will be 100 days action. We are all geared for that … I have maintained that the fiscal policy should be counter cyclical. There is scope for that.”

(Reuters)

Expected DA for Bank Employee from August 2019 is 24 slab to 29 slab

The CPI data for the month of April'19 is just declared and it  is increase of 3 points 309 to 312 point  . Assumptions of CPI for next two months provided expected DA paybale from Aug'19 as under:-

1. On assumptions that CPI would remain at least same as of April'19 for two next month i.e for May'19 & June'19. In this situation the expected (tentatively) increase in DA Slabs would come to 24 slabs and the total tentatively revised DA slabs would be 669 i.e. 69%.
2. On assumptions that there would be an increase of one point in CPI data in next both months. In this situation the expected (tentatively) increase in DA Slabs would come to 29 slabs and the total tentatively revised DA slabs would be 674 i.e. 67.40%.
3. Keeping in view the election events in the country and rise in price of general items of use of common man, we may assume that there will be an increase of minimum of two points in CPI data for the month of May'19 and one point in June'19. In this situation the expected (tentatively) increase in DA Slabs would come to 27 slabs and the total tentatively revised DA slabs would be 672 i.e. 67.20%.

Real Time Gross Settlement (RTGS) System – Extension of Timings for Customer Transactions

Real Time Gross Settlement (RTGS) System – Extension of Timings for Customer Transactions
RBI vide its notification RBI/2018-19/189 DPSS (CO) RTGS No. 2488/04.04.016/2018-19 dated 28.05.2019 announced that to extend the timings for customer transactions (initial cut-off) in RTGS time window from 4:30 pm to 6:00 pm. with effect from June 01.06.2019 which will be asunder. 
Sr. No. Event Time
1. Open for Business 08:00 hours
2. Customer transactions (Initial Cut-off) 18:00 hours
3. Inter-bank transactions (Final Cut-off) 19:45 hours
4. IDL Reversal 19:45 hours - 20:00 hours
5. End of Day 20:00 hours
The time-varying charges for transactions in RTGS from 13:00 hours to 18:00 hours shall be ₹ 5 per outward transaction. The time-varying charges structure is as under:
Sr. No. Time of Settlement at the Reserve Bank of India Time-varying charge per outward transaction
(in addition to flat processing charge) (exclusive of tax, if any)
From To
1 08:00 hours 11:00 hours Nil
2 After 11:00 hours 13:00 hours ₹ 2.00
3 After 13:00 hours 18:00 hours ₹ 5.00
4 After 18:00 hours ₹ 10.00

WITHOUT CUSTOMER'S CONSENT BANK CAN NOT USE AADHAAR FOR KYC ----RBI

Banks can use Aadhaar for KYC verification with the customer's consent, the Reserve Bank said Wednesday as it updated its list of documents eligible for identification of individuals. 

The RBI specifies Know Your Customer (KYC) norms to be followed by banks and other entities regulated by it for various customer services, including opening of bank accounts. 

"Banks have been allowed to carry out Aadhaar authentication/ offline-verification of an individual who voluntarily uses his Aadhaar number for identification purpose," the central bank said in its amended Master Direction on KYC. 

In February, the Union Cabinet had approved promulgation of an ordinance to allow voluntary use of the 12-digit unique number as identity proof for opening bank account and procuring mobile phone connection. 

The ordinance was necessitated as a bill, passed by the Lok Sabha on January 4 but pending in the Rajya Sabha, would have lapsed with the dissolution of the current Lok Sabha. The ordinance gave effect to changes in the Aadhaar Act such as giving a child an option to exit from the biometric ID programme on attaining 18 years of age. 

The RBI further said that 'Proof of possession of Aadhaar number' has been added to the list of Officially Valid Documents (OVD). 

For customer identification of individuals, the RBI said those desirous of receiving any benefit or subsidy under direct benefit transfer (DBT), the bank should obtain the customer's Aadhaar and may carry out its e-KYC authentication. 

For non-DBT beneficiary customers, the Regulated Entities (REs) should obtain a certified copy of any OVD containing details of customer's identity and address along with one recent photograph. 

REs shall ensure that the customers (non-DBT beneficiaries) while submitting Aadhaar for Customer Due Diligence, redact or blackout their Aadhaar number in terms of sub-rule 16 of Rule 9 of the amended PML Rules," it added. 

The amended KYC norms further said for non-individual customers, PAN/Form No 60 of the entity (for companies and Partnership firms - only PAN) should be obtained apart from other entity related documents. The PAN/Form No 60 of the authorised signatories shall also be obtained. 

Form 60 is required to be submitted by an individual who does not have a Permanent Account Number (PAN). 

"For existing bank account holders, PAN or Form No 60 is to be submitted within such timelines as may be notified by the Government, failing which account shall be subject to temporary ceasing till PAN or Form No 60 is submitted," the RBI said. 

However, before temporarily ceasing operations for an account, RE shall give the customer an accessible notice and a reasonable opportunity to be heard, it added. 

 

Best Banks in India 2019 (Top 30)

Forbes in partnership with market research firm Statista has published list of World’s Best Banks.

Top 30 Banks of India

Rank	Bank	Headquarter	Employees
1	HDFC Bank	Mumbai	88253
2	ICICI Bank	Mumbai	81548
3	DBS	Singapore	24174
4	Kotak Mahindra Bank	Mumbai	35717
5	IDFC Bank	Chennai	9670
6	Syndicate Bank	Bangalore
7	Punjab National Bank	New Delhi	74897
8	Allahabad Bank	Kolkata	23967
9	Vijaya Bank	Bangalore	16079
10	Axis Bank	Mumbai

11	State Bank of India	Mumbai	264041
12	Citibank	New York	164,337
13	Karnataka Bank	Mangaluru	8,220
14	City Union Bank	Kumbakonam	5,319
15	Indian Overseas Bank	Chennai	17,936
16	Bank of Baroda	Baroda	55,662
17	Paytm Payments Bank	Noida
18	United Bank of India	Kolkata	15,317
19	Standard Chartered	London	86,000
20	Union Bank of India	Mumbai	37,587
21	Indian Bank	Chennai	19,843
22	HSBC	London	229,000
23	Karur Vysya Bank	Karur	7,956
24	UCO Bank	Kolkata	23,943
25	South Indian Bank	Thrissur	7,946
26	IndusInd Bank	Mumbai	25,284
27	IDBI Bank	Mumbai	7,762
28	Bank of India	Mumbai	48,680
29	Oriental Bank of Commerce	Gurgaon	21,977
30	Canara Bank	Bangalore	58,855

Source : Forbes

Salient features of Sukanya Samriddhi Account---Who can open and how?

Sukanya Samriddhi Deposit Account Scheme has been introduced vide Government of India Notification No. G.S.R.863(E) dated December 02, 2014 and circulated to Banks by Reserve Bank of India vide their letter No.RBI/2014-15/494/IDMD(DGBA).CDD/No.4052/15.02.006/2014-15 dated 11th March 2015. The accounts under this scheme can be opened at any post office in India doing savings bank work and authorised to open an account under the scheme or at any branch of a commercial bank authorised by the Central Government to open an account under the scheme.

Flash :- The government has revised interest rates payable on Sukanya Samriddhi Deposit as 8.5% from 8.1% w.e.f. 01.10.2018.

Salient features of Sukanya Samriddhi Account

• Objective: To promote the welfare of Girl Child and behind this initiative is to address the Gender imbalance and create a positive environment in favour of Girl Child. Sukanya Samriddhi account is launched with a social message is that Marriage or Education of a Girl Child is not a financial burden if parents plan well in advance.
• Who can open the account:
  A natural/ legal guardian on behalf of a girl child in the name of a girl child from the birth of the girl child till she attains the age of ten years and any girl child, who had attained the age of ten years, one year prior to the date of commencement of the scheme i.e. 2nd December 2014.
• Documents Required :
  Birth certificate of the girl child in whose name the account is opened and with Address proof and Identity proof of A natural/ legal guardian.
• Term Period :
  Deposits can be made till completion of fourteen years from the date of opening of the account. The maturity of the account is 21 years from the date of opening of account or if the girl gets married before completion of such 21 years, the operation in the account shall not be permitted beyond the date of her marriage. In other words No Deposit for the period from 15th to 21st Year of account.
• Maximum number of accounts:
  Upto two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children
• Minimum and Maximum Amount of Deposit:
  Min.1000 of initial deposit with multiple of one hundred rupees thereafter with annual ceiling of Rs.150000 in a financial year Tenure of the Deposit: 21 years from the date of opening of the account
• Flexibility to operate Sukanya Samriddhi:
  (a) Account (1) The account shall be opened and operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened, attains the age of ten years.
  (b) On attaining age of 10 years, a girl child can operate her account
• Maximum period upto which deposits can be made:
  14 years from the date of opening of the account
• Interest on Deposit:
  As notified by the GOI, compounded annually with option for monthly interest pay-outs to be calculated on balance in completed thousands.
  Interest rate For FY 2014-15 fixed at 9.1%
  Interest rate For FY 15-16 fixed at 9.20%
  Interest rate revised w.e.f 01.04.2016 is 8.6%
  Interest rate revised w.e.f. 01.10.2016 is 8.5%
  Interest rate revised w.e.f. 01.04.2017 is 8.4%
  Interest rate revised w.e.f. 01.07.2017 is 8.3%
  Interest rate revised w.e.f. 01.01.2018 is 8.1%
  Interest rate revised w.e.f. 01.10.2018 is 8.5%
• Tax Rebate:
  A contribution of up to Rs 1.5 lakh under Sukanya Samriddhi scheme qualifies for income tax deduction under Section 80C of Income Tax Act. Also, interest income and maturity amount would be tax-free, making Sukanya Samriddhi scheme similar to public provident fund (PPF) in terms of tax aspects.
• Premature Closure:
  Allowed in the event of death of the depositor or in cases of extreme compassionate grounds such as medical support in life threatening diseases to be authorized by an order by the Central Government
• Irregular Payment/ Revival of account:
  By payment of penalty of Rs.50 per year alongwith the minimum specified amount per year
• Mode of Deposit:
  Cash/Cheque/ Demand Draft
• Withdrawal :
  50% of the balance lying in the account as at the end of previous financial year for the purpose of higher education, marriage after attaining the age of 18 years.

Sukanya Samriddhi Account Comparison With PPF:

	Public provident fund (PPF)	Sukanya Samriddhi Account
Loan Facility	A loan facility is available from the third financial year of opening the PPF account	There is no such facility
Partial Withdrawal	Partial withdrawal is permissible every year from the seventh financial year of opening the account. Please Click Here for more details of PPF scheme.	Up to 50 per cent of the accumulated amount can be withdrawn only after the account holder turns 18 while full withdrawal is possible after she turns 21.

OBC posts 39% rise in Q4 profit, OBC readt to take another Bank--MD MUkesh Jain

North India based Oriental Bank of CommerceNSE -1.40 % on Monday said that it is open to acquire other state run lenders and that the bank has managed to achieve a turn around. 

OBC posted a net profit of Rs 202 crore for the last quarter of 2018-19, an increase of 39.02% as compared with the quarter ending December 2018. The company’s scrip on the BSE closed at Rs 92.30, down by 3.30% on a day when the banking sector barometer, Bankex lost 1.19%. 

“We are now a strong bank, well capitalised and poised for growth”, said OBC’s managing director MK Jain adding that the bank has also identified some candidates for possible acquisition. 

Jain said that the bank will now look to raise around Rs 1,000 crore through a qualified institutional payment (QIP) route by the end of December quarter. 

“We have managed a turn around. Our main focus was on recovery and upgradation and that has given results,” he said, adding that the bank has posted a 100% profit with Rs 55 crore for FY 2019 as compared with a net loss of Rs 5,872 crore in the previous fiscal. 

For the current fiscal, OBC is looking at an overall credit growth of 10-12%, said Jain adding that their focus will be on retail, agriculture and medium small enterprises sector. 

Bank is well capitalised at 12.73% as against minimum requirement of 10.875%, so we will not seek any capital from the government,” he added. 

OBC made recoveries of around Rs 1,827 crore in the last quarter of this fiscal. Total recoveries in FY19 were of Rs 6,597 crore as against Rs 3,161 crore in the previous fiscal. 

Net NPA or bad loans for the bank decreased to 5.93% at Rs 9,440 crore as against 7.15% (Rs 9,973 crore) in December 2018. 

 Jain said that the bank is expecting recoveries of Rs 1,000 crore in the first quarter of this fiscal with around three more large cases being resolved through the Bankruptcy Code. 

The bank which has around Rs 20,000 crore exposure to non-banking financial companies (NBFCs) said that most of this is in AAA rated firms. 

 

Punjab National Bank (PNB) posted big loss in Q4--How it take control other bank????

Punjab National Bank (PNB) today reported a loss of ₹4,750 crore for the March quarter, bettering its performance from a year ago when it reported a loss of 13,417 crore. Fall in provisions, indicating better recovery, ample provisions and improving assets helped narrow the loss.

PNB’s provisions declined to ₹7,611 crore in Jan-Mar, from ₹12,970 crore.

PNB’s gross non-performing assets (NPA) fell to 15.5% from 18.38% while net NPAs declined to 6.56% from 11.24%.

The lender’s net interest income grew 37.1% from a year ago to ₹4,200 crore in the March quarter. Net interest margin, a key measure of profitability, rose to 2.45% from 1.90% in the March quarter of 2018.

The bank had incurred a net loss during the financial year 2017-18, after it discovered over ₹14,000 crore fraud, involving jewelers Mehul Choksi and Nirav Modi at its Mumbai Bradyroad branch in January, last year. Thereafter, PNB posted losses in three consecutive quarters beginning January-March (2017-18).

It turned profitable only in during the previous quarter (October-December).

THE BENEFITS FOR SENIOR CITIZENS IN INDIA -Details please read full articles

CIRCULATE AND CREATE AWARENESS

THE BENEFITS FOR SENIOR CITIZENS IN INDIA

I. Transportation:
Ministry of Road Transport and Highways:
i) Reservation of two seats for senior citizens in front row of the buses of the State Road Transport Undertakings.
ii) Some State Governments are giving fare concession to senior citizens in the State Road Transport Undertaking buses and are introducing Bus Models, which are convenient to the elderly.

Under Delhi Transport Corporation:

1. Special Hire Service: - Apart from the normal services, the Corporation also provides buses to the Citizen of Delhi on Special Hire for marriage parties, picnics, etc.
2. Free/Concessional Passes: - DTC also offers Free Passes to disabled persons, war-widows & their dependents, eminent sport personalities, Freedom Fighters etc. and Concessional Passes to various categories of commuters viz. Students, Senior Citizens, Residents of Resettlement Colonies, Journalists, etc.
For Senior citizens above the age of 60 years, Bus pass for all routes at Rs. 50 per month. Income has to be below Rs. 75000 per year.
Ministry of Railways:
1. Indian Railways provide 30% concession in all classes and trains including Rajdhani/Shatabadi trains for both males and females aged 60 years and above.
2. Indian Railways also have the facility of separate counters for Senior Citizens for purchase/booking/cancellation of tickets.
3. Wheel Chairs for use of older persons are available at all junctions, District Headquarters and other important stations for the convenience of needy persons including the older persons.
4.. Ramps for wheel chairs movement are available at the entry to important stations.
5. Specially designed coaches with provisions of space for wheel chairs, hand rail and specially designed toilet for handicapped persons have been introduced.
Ministry of Civil Aviation:
1. Indian Airlines is providing 50 per cent Senior Citizen Discount on Normal Economy Class fare for all domestic flights to Indian senior citizens who have completed the age of 65 years in the case of male senior citizens and 63 years in the case of female senior citizens subject to certain conditions.
2. Air India is offering discount of 55% to senior citizens of 60 plus on flights to USA, UK and Europe on economy class. Further, Air India has now decided to reduce the age of 60 plus for discount on their domestic routes as well with immediate effect. For Identity card, 2 passport sized photographs have to be submitted along with the form.
3. Jetlite offers a discount of 50% on economy class for citizens of 65 years or above. One passport sized photograph required on the form along with age proof.
4. Jet Airways offers discount to senior citizens of 65 years or above.
For availing discount in domestic flights, senior citizens have to fill up a discount form along with a passport sized photograph and Age proof certificate. Jet Airways also provides Senior Citizen I-Card which is available in all ticket counters and requires 2 passport sized photographs and age proof certificate. For the I-Card a very nominal amount is charged.
II. Telecommunications:
i) Faults/complaints of senior citizens are given priority by registering them under senior citizens category with VIP flag, which is a priority category.
ii) Senior citizens are allowed to register telephone connection under N-OYT Special Category, which is a priority category.
iii) MTNL in NCR offers a discount of 25% on Rs. 250 per month Plan. Age limit is 65 years or above.
III. Ministry of Consumer Affairs, Food and Public Distribution:
i) Under the Antyodaya Scheme, the Below Poverty Line (BPL) families which also include older persons are provided food grains at the rate of 35 kgs. per family per month. The food grains are issued @ Rs.3/- per kg. for rice and Rs.2/- per kg. for wheat. The persons aged 60 years above from the BPL category were given priority for identification.
(ii) Under the Annapoorna Scheme being implemented by the States/UT Administration, 10 kgs. of food grains per beneficiary per month are provided free of cost to those senior citizens who remain uncovered under the old age pension scheme.
iii) Instructions to State Governments for giving priority to the Ration Card holders who are over 60 years of age in Fair Price Shops for issue of rations.
IV. Ministry of Health & Family Welfare:
1. Separate queues for elderly persons in hospitals for registration and clinical examination.
2. Special Clinics, every Sunday between 10 am to 12 noon, for elderly persons available at the following hospitals in New Delhi.
a) Lok Nayak Hospital
b) GTB Hospital
c) Deen Dayal Upadhyay Hospital
d) Aruna Asafjahan Ali Hospital
e) Sanjay Gandhi Memorial Hospital
f) Dr. Joshi Memorial Hospital
g) Babu Jagjeevan Ram Hospital
h) Ram Rao Tula Memorial Hospital
i) Lal Bahadur Shastri Hospital
The services include health check-ups, operations, treatment of physically invalid, gynecology, ENT and ophthalmology along with pathological and radio therapy facilities.
V. Income Tax (Ministry of Finance):
1. For senior citizens the exemption limit is Rs. 3,00,000 up to which senior citizen pays no income-tax at all. The benefit of higher exemption limit for a senior citizen is available only when a person has completed 60 years of age.
2. The senior citizen should also take full advantage of section 80C of the Income Tax Act, 1961 whereby deduction up to Rs. 1.00 lakh is available for investment by way of insurance premium, repayment of the housing loan or investment in Senior Citizens Savings Scheme as also the Bank Fixed Deposit.
3. Similarly as also the Bank Fixed Deposit. Similarly, the citizen can also take advantage of the Mediclaim Policy. In case senior citizen or any member of his family suffers from serious medical problem of suffers from some disability he can claim certain other deductions under the tax law.
VI. MINISTRY OF SOCIAL & EMPLOYEMENT
1. Ministry of Social Justice & Empowerment is the nodal Ministry responsible for welfare of the Senior Citizens. It has announced the National Policy on Older Persons which seeks to assure older persons that their concerns are national concerns and they will not live unprotected, ignored and marginalized. The National Policy aims to strengthen their legitimate place in the society and to help older people to live the last phase of their life with purpose, dignity and peace. The National Policy on Older Persons inter alia visualizes support for financial security, health care and nutrition, shelter, emphasis upon education, training and information needs, provision of appropriate concessions, rebates and discounts etc. to Senior Citizens and special attention to protect and strengthen their legal rights such as to safeguard their life and property. The National Policy on Older Persons confers the status of senior citizen to a person who has attained the age of 60 years.
2. The Ministry is also implementing following schemes for the benefit of Senior Citizens:
(a) An Integrated Programme for Older Persons (Plan Scheme) – This Scheme has been formulated by revising the earlier scheme of “Assistance to Voluntary Organizations for Programme relating to the Welfare of the Aged”. Under this Scheme, financial assistance up to 90% of the project cost is provided to NGOs for establishing and maintaining Old Age Homes, Day Care Centers, Mobile Medicare Units and to provide non-institutional services to older persons.
(b) The Scheme of Assistance to Panchayati Raj Institutions/ Voluntary Organizations/Self Help Groups for Construction of Old Age Homes/Multi-Service Centers for older persons (Non Plan Scheme) - Under this Scheme, one time construction grant for Old Age Homes/Multi-Service Centre is provided to non-governmental organizations on the recommendation of the State Governments/ UT Administrations.
VII. Ministry of Rural Development:
1. Under the National Old Age Pension Scheme, Central Assistance of Rs. 75/- p.m. is granted to destitute older persons above 65 years. This Scheme has been transferred to the State Plan w.e.f. 2002-03.
2. Under the Annapurna Scheme, free food grains (wheat or rice) up to 10 kg. per month are provided to destitute older persons 65 years or above who are otherwise eligible for old age pension but are not receiving it.

Average tax payer will need to work over 300 years to match an MP's assets

The wealth gap between Lok Sabha MPs and their constituents may have just widened.

The average assets of a Lok Sabha MP is now 345.8 times that of the annual income of a tax filing individual. This means that it will take the average tax payer 345.8 years to earn the equivalent of the assets of the average Lok Sabha MP.

This is only marginally worse than before. It was 299.8 times in 2014. Income tax data for previous years was not available.

The data is based on gross total income based on income tax statistics. Gross total income includes all income claimed by individuals including salary, business income and rent, among others. The analysis used 2016-17 (FY17) numbers, the latest available. The asset details are based on the latest affidavits of MPs based on data collated by non-governmental organisations National Election Watch and Association for Democratic Reforms in their periodic reports.


The average assets of MPs have risen at an annualised rate of 7.3 per cent between 2014 and 2019. Gross total income of individuals who filed income tax returns grew slightly slower at 7.2 per cent between FY14 and FY17, while average gross total income rose from Rs 4.9 lakhs to Rs 6 lakhs. The average MP’s assets rose from Rs 14.7 crore in the previous Lok Sabha (2014-2019) Rs 20.9 crore in the latest one (2019).
The 7.3 per cent rise in an average MP’s assets may have outstripped the pace at which the salary of the income tax filing individual. This is because the average salary income of tax filers rose 5.9 per cent between FY14 and FY17, while average business income rose 8 per cent.

Assets of re-elected MPs grew slower

As many as 225 MPs have been re-elected to the Lok Sabha this time.
A comparison of MPs who have been re-elected shows that growth in their assets is lower, at 5.1 per cent annually, than that of the average tax filing individual. This means that the rise in average assets of MPs may have been driven by newly elected MPs rather than the re-elected ones.
This also seems to be borne out by another statistic in the report. The number of MPs who have declared assets of more than Rs 1 crore has risen over the past three Lok Sabha elections. It was 58 per cent in 2009, rose to 82 per cent in 2014 and was 88 per cent in 2019.
One caveat in the numbers is that tax figures for 2017 may have changed by 2019, but tax filers are typically wealthier than the average Indian.

“The per capita net national income during 2018-19 is estimated to be Rs 1,25,397,” according to a government statement in January this year. This is less than a quarter of the average gross total income used above, which would mean that the gap may be wider for the public at large.
Research has suggested that the wealthy tend to have different attitudes towards public issues than the majority, and that they exert a disproportionate impact on policy even if they are not part of the government. The wealthy tend to have more conservative views on taxation, economic regulation and social welfare programs, according to a 2013 study entitled ‘Democracy and the Policy Preferences of Wealthy Americans’ from authors Benjamin I Page, Larry M Bartels and Jason Seawright published in the journal Perspectives on Politics.
“We suggest that these distinctive policy preferences may help account for why certain public policies in the United States appear to deviate from what the majority of US citizens wants the government to do. If this is so, it raises serious issues for democratic theory,” it added.