Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday 29 August 2016

It is a MAD, MAD, MAD, MAD, World !


It   is  a  MAD,  MAD,  MAD,  MAD,   World  !

Not many will remember this hilarious Hollywood movie of a few decades back
When the movie was nearing completion , it is said that  the production team in charge of the movie got together to decide upon its name
One team member suggested : Let us call it" It is a  MAD, MAD , MAD , MAD , MAD  world "
After a lot of heated arguments , the team concluded :
" Repeating the word " MAD " for the fifth time , would be clearly " redundant  ! "

Hindustan Times ( 29 Aug 2016 ) , carries a report : War on Black Money : It's m-Wallets vs UPI
Dilip Asbe , CEO , NPCI is quoted :
UPI will be an enabler to existing wallets and in fact can be used to fund the wallets
   We have not got wallets under the UPI as it is designed for banks now. Also, wallets offer facilities beyond money
   transfer "

Question is :  How many m-Wallets are too many ?  Which is the next one , which would be " redundant " ?

Purely out of self interest ( to increase their own business - and with no love lost for BLACK MONEY ! ) , expect hundreds of  companies , in each of the following sectors , to come out with their own , branded  m-Wallets :

#   E-Com companies ( Online Market-places ) / Credit - Debit Card Companies

#   Companies making Consumer Goods and even Consumer Durables

#   Banks  / Insurance companies  / NBFC / Hospitals / Railways

#   Large Retailers with nation-wide presence ( Ambani - Adani - Biyani - Walmart etc )

#   Mobile Service Providers / Power-Gas-Water-Internet  Distribution Companies

#   Schools / Colleges / Universities / Coaching Classes

#   Online Entertainment / Service Delivery Companies / Consultancy Companies

#   In short , ALL companies trying to sell ( Goods or Services ) using a Mobile App

There is no doubt , all of this will help billions of  SMALL TICKET  CASH  transactions taking place daily , to become NON-CASH transactions

But neither UPI , nor m-Wallets can :

#   Move 100,000  Currency notes of Rs 1,000 each , from safe deposit locker of the person buying land / property
     / gold  etc , to the safe deposit locker of the person selling it !

#   Motivate a " hafta collector " to accept payment by m-Wallet  from footpath vegetable vendor ,  even if it is a
     single Currency Note of Rs 500 /-

#   At a slightly higher level ( of Corruption ) , which local dada / goon / mafia , has official bank balance of Rs
     10,000 , even though his numerous safe deposit lockers are overflowing with Rs 500 / 1,000 currency notes ?
    
#   And at considerably higher level , any idea how many billions currency notes of Rs 500 / 1,000 are lying locked-
     up in the lockers of corrupt businessmen / industrialists / bureaucrats / politicians etc , beyond the reach of UPI
     or m-Wallets ?

#   Following figures will give you an idea :
   
    Latest available figures for currency notes in India :


   *  Total number of notes ( Rs 1 onwards )........ 76.5 Billion pieces ( = Rs 12468 Billion in Value )

   *  Of the above , share of Rs 1000 notes...........39 % ( ie : Rs 4862 Billion , by Value )

   *  And the share of Rs 500 notes....................  45 % ( ie : Rs 5610 Billion , by Value )

   * Share of Rs 1/2/5/10/20/50 / 100 notes........ 16 % ( ie : Rs 1995 Billion , by Value )


   Therefore , it stands to reason that the predicted increase in those NON-CASH transactions ( going up to 59 %

   by 2025 ) , will mostly eliminate just 16 % of the TOTAL currency-value in circulation !


   There does not seem to be any likelihood of Mobile Wallets , encroaching on the balance 84 % of the currency !


As I have repeatedly suggested , the ONLY way to bring to surface those Rs 500 / 1,000 Currency Notes , is to

embed these with RFID micro-sensors !


I hope , someday , some powerful , non-corrupt , honest ( and dictatorial ? ) Policy Maker will show the courage to

take this  MOST POPULAR / RADICAL / TRANSFORMING / GAME - CHANGING  decision !

------------------------------------------------------------------------------------------------------------------------------

29  Aug  2016




   
   







hemen  parekh


Marol , Mumbai , India


( M ) +91 - 98,67,55,08,08


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