Not many will remember this hilarious Hollywood
movie of a few decades back
When the movie was
nearing completion , it is said that the
production team in charge of the movie got together to decide upon its name
One team member suggested : Let us call
it
, " It is a
MAD, MAD , MAD
, MAD , MAD world "
After a lot of heated arguments , the team concluded :
" Repeating the word " MAD " for the fifth
time , would be clearly " redundant ! "
Hindustan Times ( 29 Aug 2016 ) , carries a report : War on Black Money : It's m-Wallets vs UPI
Dilip Asbe , CEO , NPCI is quoted :
"
UPI will be
an enabler to existing wallets and in fact can be used to fund the wallets
We have not got wallets under the UPI as it is designed for banks now. Also, wallets
offer facilities beyond money
transfer
"
Question is : How many m-Wallets are too many ?
Which is the
next one , which would be " redundant " ?
Purely out of self interest ( to increase their own business
- and with no love lost for BLACK
MONEY ! ) , expect hundreds of companies , in each of the following sectors ,
to come out with their own , branded m-Wallets :
# E-Com companies (
Online Market-places ) / Credit - Debit Card Companies
#
Companies making Consumer Goods and even Consumer Durables
# Banks / Insurance companies / NBFC / Hospitals / Railways
# Large Retailers with nation-wide presence (
Ambani - Adani - Biyani - Walmart etc )
#
Mobile Service Providers / Power-Gas-Water-Internet Distribution Companies
# Schools / Colleges / Universities / Coaching
Classes
# Online Entertainment / Service
Delivery Companies / Consultancy Companies
#
In short , ALL
companies trying to sell ( Goods or Services ) using a Mobile App
There is no doubt , all of this will help billions
of SMALL TICKET CASH
transactions taking place daily , to
become NON-CASH
transactions
But neither UPI , nor m-Wallets
can
:
# Move 100,000 Currency notes of Rs 1,000 each , from safe
deposit locker of the
person buying land / property
/ gold etc , to the safe deposit locker of the person
selling it !
# Motivate a " hafta collector " to accept payment by
m-Wallet from footpath vegetable vendor , even if it is a
single Currency Note of Rs 500 /-
#
At a slightly higher level ( of Corruption ) , which local dada / goon / mafia , has
official bank balance of Rs
10,000 , even though his numerous safe deposit lockers are overflowing with Rs 500 / 1,000 currency notes
?
# And at considerably higher level , any idea
how many billions currency
notes of Rs 500 / 1,000 are lying locked-
up in the lockers of corrupt businessmen / industrialists / bureaucrats
/ politicians etc , beyond the reach of UPI
or m-Wallets ?
# Following
figures will give you an idea :
Latest available figures for currency notes in India :
* Total number of notes ( Rs
1 onwards )........ 76.5 Billion pieces ( = Rs 12468 Billion in Value )
* Of the above , share of Rs
1000 notes...........39 %
( ie : Rs 4862 Billion , by
Value )
* And the share of Rs 500
notes.................... 45 % ( ie : Rs 5610 Billion , by Value )
* Share of Rs 1/2/5/10/20/50 / 100
notes........ 16 % ( ie : Rs 1995 Billion , by Value )
Therefore , it stands to reason
that the predicted increase in those NON-CASH transactions ( going up to 59 %
by 2025 ) , will mostly eliminate just 16 % of the TOTAL
currency-value in circulation !
There
does not seem to be any likelihood of Mobile Wallets , encroaching on the balance 84 % of the
currency !
As I have repeatedly suggested , the ONLY way
to bring to surface those Rs
500 / 1,000 Currency Notes , is to
embed these with RFID micro-sensors !
I hope , someday , some powerful , non-corrupt
, honest ( and dictatorial ? ) Policy Maker will show the courage to
take this MOST POPULAR / RADICAL / TRANSFORMING / GAME - CHANGING decision !
------------------------------------------------------------------------------------------------------------------------------
29
Aug 2016
www.hemenparekh.in / blogs