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

Saturday, 12 November 2016

Oh ! For a Painless Birth

For the past 3 days , we have witnessed a lot of suffering on the part of ordinary citizens

For hours on end , they have been waiting patiently in mile-long queues to withdraw new currency notes from 2.2 lakh ATMs ( often non-working or getting empty after serving 10 persons ) or to exchange Rs 4000 worth of OLD notes with NEW notes , at bank counters

Businesses of lakhs of small shops and millions of roadside vendors , came to a virtual standstill

Private hospitals refused to treat serious patients, who did not have NEW notes

Marriages came to a standstill, since caterers would not accept OLD notes .

And so did vehicles at toll nakas

Passengers got stranded at Railway Stations since they had only OLD notes which taxis / rickshaws , refused to accept

This list goes on and on

Of course , Shri Jaitley is right when he says :

A Child Birth is always accompanied by intense temporary pain - to be followed by immense perpetual joy , for months and years to come

No doubt true in case of Mother Nature's " Scheme of Things " !

But this was a TOTALLY AVOIDABLE pain , in case of the man-made " Scheme of Things " called " Currency Notes " !

What brought about this pain ?

Just a mere 4 hour notice before the OLD notes ceased to be " Legal Tender "

And no availability of the NEW notes , for days after the EXPIRY of the old notes

No overlap between the two .  No simultaneous existence for both !

But imagine if the OLD notes were to continue as " Legal Tender " till 31 March 2017

That would have enabled citizens to carry on their daily lives , as if nothing has changed !

They would have deposited their OLD notes into their bank accounts and would have withdrawn NEW notes ( either from their bank accounts or from ATMs ) , over the next 4 months , at their own convenience ! No hurry  !

During this TRANSITION PERIOD of 4 months , sellers ( whether individuals or companies ) , would have continued to accept OLD notes without any hesitation and the buyers would have managed to buy ( goods or services ) , by giving OLD notes !

Why did the Government not do this ?

Government was worried that Rs 5 lakh*crore worth of Black Money ( some 33 % of Rs 15 lakh*crore ) which was in the form of CASH ( OLD notes of Rs 500 / 1000 ), would get exchanged with NEW notes , WITHOUT getting deposited into banks !

Over the overlap period of 4 months , unknown to IT / ED , Black Money holders of OLD notes will persuade honest / tax-paying holders of NEW notes to exchange these at a discount !

None of those Black Money holders may ever come forward to deposit their crores of ill-gotten wealth into banks and pay up 230% tax + penalty

Simply because , the Government today , has no means to know who has accumulated , how many thousands of high denomination notes and where , and totaling how much !

But , if those NEW notes were embedded with RFID sensors , then the Government would know , where exactly EACH PIECE of such note is , at EVERY MOMENT !

And , no matter which - and how many TRICKS that the Black Money holders may employ , at the end of that 4 month TRANSITION PERIOD , there would be NO OLD NOTES remaining in circulation !

ALL notes would be ,

*  NEW

*  RFID embedded

*  Traceable ( pinpoint GPS location )

During his TV interview yesterday , Shri Jaitley said :

"  SIT had even suggested that government empower itself with seizure of a large accumulation of CASH at any given location , and then require the Owner to prove that he has paid taxes on it .

We will not hesitate to take such stringent steps in future , if the menace of Black Money persists "

Also during his speech to the Indian Community in Japan yesterday , Shri Modi said :

" There is no guarantee that , after 30th Dec , we may not take further drastic steps to eliminate the scourge of Black Money "

Dear Shri Modiji / Shri Jaitleyji :

Today , in small quantities , passive RFID chips cost , around 50 paise

If you buy these in BILLIONS , you will get these for less than 5 paise per piece

Let this be your MASTER STROKE / SURGICAL STRIKE , in 2017

This will be a BIRTH of a new and clean Economy , without causing pain to honest tax payers

Please , also consider :

Which Political Party / Neta , would want NEW RFID embedded notes to accumulate in cabinets / bank lockers which show up on IT / ED mobile app ( BLACK-MAIL ) ?

13  Nov  2016

www.hemenparekh.in / blogs