Election Season is Rumour
Season
You
may also call it a season for cash-distribution !
Business
Line ( 06 April ) quotes RBI Governor Raghuram
Rajan as follows :
"
Money in people's hands has gone up by over Rs 60,000 crore which is not normal
and needs to be looked into
Around
election time , cash with the public does normally increase ... You can guess
as to reasons why ; we can also guess
You
see some ( spike ) not just in the State going to elections , but also in the
neighbouring states . There is something..We need to understand it better
"
According
to the latest data released by the RBI, there was a 48 % increase in the
currency in circulation at Rs 2 lakh crore for the fortnight ended March 18
Now
Times of India ( 08 April ) talks of a report released by the State Bank of
India , which says :
"
It is rumours of demonetization
of Rs 500 and Rs 1000 notes that is possibly driving people to withdraw
cash in order to deploy them in safe assets
There are suggestions in public domain and even analysis that
are suggesting that higher denomination notes may be replaced
Demonetizing Rs 500 and Rs 1000 currency notes will bring a huge
amount of funds kept in these denominations into the banking channels and will
facilitate a reduction in domestic black money
transactions
But
this would also be a headache when it comes to logistics "
MY TAKE :
*
It is much better to have a headache than a heart attack !
*
You can have the pie and eat it too , if , instead of outright
" Demonetization ", we just replace
the existing paper notes ( of Rs 500
and Rs 1000 ) , with PLASTIC notes of same denomination , but embedded
with RFID micro-sensors ( 50th of a hair thickness
) , which can be tracked
through a GPS enabled technology platform (
consisting of a Mobile App )
*
Any accumulation of Rs 10 lakh worth of such notes
, within an area of
ONE square meter , will show up on a Google Map on
the mobile app !
*
This will not only allow people the convenience to
continue using Rs 500 /
Rs 1000 plastic notes for their daily usage /
purchases but it will, at same
time ensure that goods / services valued at a
few thousands of rupees ,
will always get paid thru banking channels ,
since no seller of goods or
service would want an accumulation of even
1000 note of Rs 1000 , in his
table drawer / bank locker !
*
And which candidate contesting any election would
want his brief-case or
car trunk to show up on the Mobile App
of ACB / ED / IT , as a red
balloon , with caption, " Find Five Crore Here " ?
What
do experts have to say about CASH ?
*
Mark Barnett, the boss of MasterCard ( UK ), believes that in five years cash will
be practically extinct in Britain . At the Money 2020 conference in Copenhagen
last week , he said :
"
By the time we get to another generation , 30 years down the track, will there
be any cash ? I very much doubt it . It will seem as antediluvian as carrying a
pouch full of gold "
Marching
towards the goal of a " less cash " society , yesterday , Shri
Raghuram Rajan launched United Payment Interface ( UPI ) , which is independent
of any payment platform ,bank or telecom service provider
One
can use mobile based ( just one click ) UPI app for :
*
Paying for delivery of goods from online shopping web sites
*
Paying of utility bills
*
Over the counter payments
*
Bar code based payments
*
Donations / School fees
*
Any type of payment ! All without revealing your bank details !
But
if Shri Raghuram Rajan wants UPI to catch like wild fire , all that he has to
do is to replace existing notes ( not demonetize ) as suggested above
Sanjay Sarma ( MIT ) who has written 75 research papers on RFID sensors,
wrote
to me :
" I think it is a matter of time before it happens.
I do agree with your idea "
-------------------------------------------------------------------------------------
www.hemenparekh.in / blogs
12
April 2016
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
No comments:
Post a Comment