One Small Step for a Man .....
Remember the words of Neil Armstrong when he stepped onto the moon ?
" One small step for a Man ; a giant step for the Mankind "
That brings me back to Revenue Secretary, Shri Adhia's remarks in Hindustan Times ( 20 May 2016 )
While referring to Government plans to crackdown on huge cash transactions, he said :
" This will strengthen archaic laws and improve enforcement actions
More checks and barriers will stop illegal fund flow into and out of the country and help more in search and seizure operations "
He was referring to the requirement of giving PAN , as announced by the government , in past few months , in the following cases :
# cash transactions above Rs 2 lakh
# sale / purchase of immovable property beyond Rs 10 lakh
# paying of hotel and restaurant bills of Rs 50,000 and above
# purchasing gold jewellery above Rs 2 lakh
# buying / selling of shares of an unlisted company, of Rs 1 lakh and above
The government is now looking to
* increase the usage of PAN and AADHAR numbers to include more
* declare cash transactions above a certain amount as " illegal "
* require tax-paying residents to inform the government before opening a
bank account overseas
RESULTS SO FAR :
* Found Rs 21,354 Cr worth of undisclosed income
* Surveys yielded Rs 22,475 Cr
NOW COMPARE THIS ACHIEVEMENT WITH :
* Our nominal GDP is approx Rs 140 lakh*crore
* Black Economy is estimated at 70 % of GDP ( ie: Rs 100 lakh*crore )
* Between 2003-12 , Indians siphoned out $ 440 billion abroad
( Rs 31 lakh*crore )
So , after enormous administrative effort , we have managed to recover , a mere 0.2 % of the BLACK MONEY in our economy !
Instead of taking endless number of small steps over next decade , I once again urge NDA government to take following one SMALL step , which will prove to be that GIANT STEP for the entire mankind :
# Internet of Things ( IoT )
As each currency note of Rs 500 / 1000 , is getting printed , embed it with microscopic RFIDsensors
Besides communicating with each other , these sensors will also transmit their existence location , through internet , to cloud-based servers of Income Tax Department
This will form a " NETWORK OF CURRENCY NOTES ( NoC ) "
You may like to call this Internet of Currency ( IoC ) , a sub-set of IoT !
# Internet Protocol Address System ( IP V 6.0 )
Each Rs 500 / 1000 currency note must be assigned ( at the time of printing ) , its own unique Internet Address , using IP V 6.0
This IP address should be linked with the unique Serial Number printed on each note.
Since IP V 6.0 , will be capable of assigning " 2 * 10 to the power of 128 ", no of IP addresses , there is no danger of running out of addresses , even if we decide to extend this idea to Rs 100 currency notes !
Here are the most important BYE - PRODUCTs :
* No more possibility of fake / forged / counterfeit , currency notes !
* Plastic currency notes will last 10 times longer !
This reform will enable the Central Government / Income Tax Department to :
* Continuously trace the movement of each of these higher denomination currency notes
* Instantly locate any place ( using Google Map based GPS ) , where there is an accumulation of more than Rs 1 Crore worth of currency notes
Such accumulation will be made to appear as a TAG CLOUD on the web site of IT Dept, like thousands of balloons floating on a map of India , capable of being drilled down to within 1 Sq Meter !
On each balloon , will appear a number announcing , " Amount of Cash here - Rs " !
This will vastly simplify the task of Anti Corruption Dept / Enforcement Dept etc
Of course , RBI will need to allow 6 month's time to the owners of current paper currency notes of Rs 500 / 1000 , to get these exchanged with new plastic notes before withdrawal of the old notes from circulation
Now , would not that distribute the hidden , unaccounted wealth ! - a welcome fall out !
But then such transparency might lead to break-down of social order / chaos
It may be a better / safer / saner solution for such balloons / tag clouds to appear , on a secret Mobile App , available only to the officers of Enforcement Department ( ED )
You may want to call this app , " BLACK-MAIL " !
Of course , my suggestions may become outdated with the arrival of mobile wallets based CASHLESS SOCIETY , by 2030
In the meantime , should Shri Arun Jaitleyji and Shri Ravi Shankar Prasadji , want this implemented , it can be done in 6 months , at one tenth the cost of MoM ( Mars Orbital Mission ) , ie approx Rs 43 Crores
All they have to do , is to tell the bureaucracy :
" Since we need not depend upon Opposition parties to pass a bill in Rajya Sabha , please go ahead and implement this - in less than 6 months "
hemenparekh.in / blogs
20 May 2016
Marol , Mumbai , India
( M ) +91 - 98,67,55,08,08