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

Wednesday, 26 July 2017

Reducing Black Money : The Grand Strategy ?



Today’s Hindustan Times reports :


·         RBI stopped printing Rs 2,000 notes about 5 months ago


·         It is unlikely to print more 2000 rupee notes in the current financial year


·         Total Rs 2000 notes printed so far =  Rs  7.4 trillion  (  3.7 billion pieces  )


·         Rs 1000 notes withdrawn              =  Rs  6.3 trillion  (  6.3 billion pieces  )


·         New Rs 500 notes printed so far    =  Rs   7   trillion  (  14 billion pieces   )


·         Old Rs 500 notes withdrawn          =  Rs  7.85 trillion ( 15.7 billion pieces )


·         Currency in circulation                  =  Rs  15.22 trillion(86 % of “ before Demo “)


·         Rs 200 notes under printing to come into circulation in Aug


·         Initially , about 1 BILLION pieces of Rs 200 notes will get released

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


The ostensible reason being advanced for the introduction of Rs 200 notes is :


It will make life easy for citizens who badly need a currency note smaller than Rs 500 , for their day to day expenses ( so true ! )


Could it also be that , the Government plans to gradually  WITHDRAW  from circulation , Rs 2000 notes ?


Thereby making difficult , large scale transactions in CASH , involving Rs 2000 notes ( - obviously , BLACK MONEY transactions ) ?


You need to carry only ONE KG worth Rs 2000 notes for a transaction of Rs 20 lakh


But same amount in Rs 200 notes , will require to lug 10 KG ! Not very inconspicuous !


If so , this step is very welcome



But that GRAND STRATEGY will remain incomplete without introduction of ULTRA NEW notes of Rs 2000 , made out of plastic and embedded with RFID chips , as suggested by me in :


Embrace  the Inevitable  [  13  Nov  2016  ]





And with RFID chip embedded , there will be no need for :



·         Top Secret  / sudden / surprise announcement


·         A small 50 day window for exchange



In my plan , both ( old and the new notes of Rs 2000 ) , can continue to be legal tenders , with ONE YEAR overlap !




26  July  2017





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