July 12, 1981, forty years ago: discount rates increased

In a major effort to eliminate black money and stabilize the economy, the government issued two ordinances on July 11 and raised the bank rate to an all-time high of 10 percent. These measures followed the announcement on July 10 of price increases for a wide range of petroleum products and imports of basic necessities. The President promulgated two ordinances, the Income Tax Amendment Ordinance and the Compulsory Deposit (Income Tax Payers) Regime Amendment Ordinance. The first ordinance states that institutions holding public deposits must make repayments greater than Rs 10,000, including interest, only by means of account payee checks or similar drafts. This would make it difficult for people to undertake benami transactions.

More violence in the UK

Riots broke out in previously untouched towns and several new towns as police in the UK capital made 400 arrests after a government ban on demonstrations went into effect in London on July 11. of British democracy in the face of riots ”. The violence has spread to Nottingham, Hull, Newcastle, Birmingham, Wolverhampton, Sheffield and Preston. There have been more incidents of violence in Manchester and Liverpool.

Pahadia resigns

The Chief Minister of Rajasthan, Jagannath Pahadia, has tendered his resignation to Governor Raghukul Tilak. He has been asked to remain in office until a successor is appointed. The legislators of the Congress of Rajasthan (I) are to meet on July 14 to decide on the successors of Pahadia. “I am a disciplined soldier of Indira Gandhi, Rajiv Gandhi and Congress (I) and I will continue to function as such,” Pahadia said.

Arrests in Iran

Iranian authorities arrested Fathollah, the brother of ex-President Abolhassan Bani Sadr. Mostafa Entezarian, one of Bani Sadr’s relatives, was also arrested.