Three Sides of the
Triangle
FIRST SIDE :
An expert committee on household
finances , commissioned by RBI and chaired by Tarun
Ramdorai , made following observations :
·
Indians have a globally high 95 % of their wealth parked in physical assets ( 77 % in property , 7 % in
durables and 11 % in gold ), with only 5 % in financial products
·
Focussed as they are on property investments, very few Indians are investing towards
retirement ,
with 77 % of the households failing to plan for
pensions
·
Even with vastly improved access to financial products under the PM Jan
Dhan Yojana, savers shy away from financial products due to the high transaction costs, their own unpredictable income streams
and lack of trust . Most household lean on informal sources for emergency loans
at high costs
=======================================================
SECOND SIDE :
Times of India ( 28 Aug ) carries following report :
You may soon need to shell out less if you pay digitally
The government is looking at giving a 2 % incentive – over the applicable GST
tax rate – in case of digital payments where the bill is up to Rs 2,000
, in a move aimed at discouraging cash payments
The idea is to incentivize all kinds of digital payments , especially smaller
transactions , in line with the government’s plan of making India , a less cash economy
The source said the relief is being
mooted for “ smaller transactions “ as these are large in numbers and are
mostly preferred through the cash mode
Transactions of up to Rs 2,000 are very
high in volume and if an incentive can be given here, it will provide an impetus to digital payments while also
facilitating the entry of more people within the formal economy
THIRD SIDE :
It is indeed heartening to know that the
Government is “ considering “ , a suggestion that I made 2 years ago ( and sent to the Policy Makers as email ), in my blog :
After 50 years of introduction of
various PENSION SCHEMES ( public + private ) , we have managed to provide
cover to ( approx. ) 122
Lakh subscribers of NPS / APY ( by March 2016
) , of which , some 84 Lakh are employed in Industries / Businesses
But some 50
crore of our Citizens ( employed + self-employed ) have NO PENSION COVER , what-so-ever !
(
People's Wealth Creation Scheme ) as
follows :
*
If GST is going to be ( say ) 20 % ,
Government will transfer from this ,
2 % ( ie 10 % of that 20 % ) , to the PPF
account of the Consumer /
Buyer , who pays for the Goods / Services purchased , using a RuPay
Card or a " Mobile Wallet " app
This will motivate millions of self -
employed to open PPF
accounts !
*
Since interest from a PPF account is tax-free , every citizen
would , now
want to make all payments thru RuPay card or a Mobile Wallet App
*
RuPay cards are already tied up with
accounts opened under Jan Dhan
Yojana
*
Mobile Wallets Apps will also get tied-up with thousands of
branches of
Payment Banks , which will open in next 18 months
Just imagine the number of new accounts that will get opened in the
1,55,000 + post offices of India Post
!
*
In this way , Social Security will become " Self Financing " !
*
Currently , in India , some 97 % of all payments are " Cash Payments ".
With introduction of this proposal , these will drastically decline
*
Any payment made , using RuPay card or a
Mobile Wallet App , will make
available to the Income Tax
Department , full digitized record of each
such transaction , including :
* Who made the payment
* To whom was that payment made
* When was that payment made
* For what purchase , was that payment made
* What was the amount paid
*
One , very desirable consequence of
Jan Dhan Sarjan Yojana
will
be that our " Domestic Savings Rate " will climb back to 30
% !
In turn , this will help us wither global economic crisis , much
better !
Dear Shri Arun Jaitleyji :
My suggestion provides an opportunity to
rapidly move towards a “ Less Cash Economy
“
And , please do not worry about the fact
that those 50 crore Indians do NOT
have a PPF account ( to enable transfer
of that 2 % incentive )
Our ICT ( HW / SW ) geeks are quite
capable of ensuring that Jan Dhan Sarjan Software will create such an account AUTOMATICALLY / INSTANTLY , in the name of
each citizen making a DIGITAL PAYMENT
And know what ?
With this in place , you would have created
a PLATORM for future introduction of UNIVERSAL
BASIC INCOME !
Please , do not let this “ Once – in – a – Life Time “ opportunity slip
away !
29 Aug 2017
www.hemenparekh.in
/ blogs
With Regards,
hemen
parekh
(
M ) +91 - 98,67,55,08,08
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