FM Arun Jaitley has announced a new scheme for black money holders to declare assets post-demonetization, under which the individual would have to pay 50% of the disclosed amount as tax. 25% of the money would also have to be deposited in a non-interest earning account for four years - an additonal requirement that seems focused on easing the liquidity situation and NPA ratios for Indian banks. Rs. 8.4 trillion has already been deposited since the demonetization announcement, more than half of the estimated old notes in circulation. According to the RBI, the total withdrawals amounted to Rs. 2.16 trillion from bank accounts and ATMs.

In the meantime a Reuters survey found that India's GDP grew at 7.5% in the July-September quarter, but the impact of demonetization is likely to see a pullback in growth in the coming months, with customers cutting spending and rural economies thrown out of gear.

Stock in spotlight: Tata Steel, which has gained over 94% from its 52 week low and is currently above all SMAs. The company  announced yesterday that O P Bhatt, former SBI head, would be its interim Chairman, replacing Cyrus Mistry. Bhatt was head when SBI cleared a $1 billion loan for the Tatas "in five minutes" for the acquisition of Corus Steel. Corus - now Tata Steel UK - is reeling and has signed a letter of intent, for purchase by the Liberty House Group for 100 million pounds. Tata Steel UK invested 1.5 billion pounds of capital into its business over the past nine years.

Photo of the day: A man puts his debit card back into a wallet printed to look like the banned 1000 rupee note. Jayanta Dey/Reuters India