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

Saturday, 1 July 2017

How to Universalize Social Security ?



For a long time , in India , the only Social Securities were :


·         EPF / PPF ( for a few million persons working in Organized Sector )


·         A earning son in a HUF – Hindu Undivided Family ( For a Billion + Citizens )



A few years back , government introduced  Atal Pension Yojana ( APY )


A report in Business Line ( 17 June ) reads :




To expand the outreach of the Atal Pension Yojana (APY), people can now enrol and subscribe digitally to the scheme.


“The Pension Fund Regulatory and Development Authority has now introduced “APY@eNPS” which involves a complete digital enrolment process,” said the Finance Ministry on Friday, adding that it will give additional push to cover the as yet unreached population at greater ease.



APY is the flagship social security scheme that is available for all citizens in the age group of 18-40 years and provides them a minimum guaranteed pension. At present, the scheme has over 54 lakh subscribers and it has generated a return of 13.91 per cent.

=================================


Although this facility, would certainly help , it is quite unlikely to cover a billion citizens !


For a comprehensive solution, take a look at :

JanDhan Sarjan Yojana  ( 31  Aug  2015 )



-      where I suggested 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 % !



02  July  2017


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