Saturday, November 12, 2016

DEMONETIZATION (WITHDRAWAL OF 500 & 1000 Currency notes as Legal tender)

To set the context, I would like to state that I am not against fact, I am for Demonetization but in very bigger way...   1. Announcement of JANDHAN yojna was to my delight as it is the first step in combating corruption.   2. Announcement of electronic payment receipts (EPR )for government departments as a part of DIGITAL INDIA has enhanced my spirit in journey towards corruption free country... 3. Passing of GST bill helped me believe that radical change is right around the we all know as to how GSTN executes this marvellous legislation.   4. Discussion of payment bank concept enhanced my enthusiasm....   5. Introduction of Unified Payment Interface (UPI) is another brilliant move providing identity of person sending and receiving money.   When our PM announced that new 500 and 2000 notes will be issued I was extremely disappointed... because combating corruption in India is IMPOSSIBLE with PAPER CURRENCY IN CIRCULATION   Reason 1 THIS IS NOT VACCINATION AGAINST DISEASE OF CORRUPTION (just an Anti biotic) The very fact that issuing new currency notes is ONE TIME MEASURE to clear existing black cannot stop black money creeping again... Example: traffic police will now take 2000 as bribe...for an offence ...   Reason 2 NUMEROUS WAYS OF COMPROMISING OBJECTIVE STILL EXIST This is because of the very fact that paper currency exists.   Very minute portion of innumerable ways of compromising objective are   1.Exchange of 500&1000 for 100 rupee notes was one of initial knee jerk reaction to the announcement...   2.Purchasing Gold and stacking it was another mode adopted to change form of black money...of course this will at least contribute 30% tax...if not penalties...   3.Using accounts of others and withdraw new notes....   In my view, Demonetization preceeded ONE CRUCIAL STEP....just one...     AVAILABILITY OF CYBER INFRASTRUCTURE to traders or service providers...   This includes   1. Availability of Branches of Bank/business correspondent in every village/town/city.   2. Incorporating world class cyber security throughout payment systems across india.   3. Introducing Digital Lockers wherein account holder details are mapped   4. Availability of POINT OF SALE terminals/E WALLETS to all traders/ service providers starting from farmers, hawkers, peddlers to everyone.   And for all those who believe it is impossible to materialize even in a decade here are few statistics ....There are around 120 crore population in approximately 25 crore households spread over 650000 villages/towns/cities.   1. As of 2nd November 2016,under jan dhan yojna 26 crore accounts have been opened and around 20 crore rupay cards issued...this number can be increased to provide card for all...and is already in progress...   2. Strengthening existing security systems can be done by conducting international conferences/seminars/idea contests etc. including all software engineers either employed or unemployed in India and also across the globe.   3. Including manufacturing of POS terminals and providing e wallet services under MAKE IN INDIA initiative to attract FDI as much as necessary thereby reducing unemployment atleast to some extent.   I would like to conclude that, had the announcement been made after an year or two and it did not include reissuing paper currency, it would have been the wolrd's most successful win in the battle over corruption. Thank you for reading...I am available at Please do communicate your views.. JAI HIND