Why Only 21,000 Crore ?

News reports this morning say that a sum of Rs 21,000 cr has been deposited in numerous Jan Dhan Accounts, since 13 Nov ( going up from Rs 45,636 cr to Rs 66,636 cr , in 10 days )

IT dept says , these were mostly accounts with ZERO or Re ONE bank balance on Nov 8, and now show a balance of Rs 40,000 to Rs 49,000

At an ave of Rs 50,000 ( half a lakh ) deposit per account , that means , Rs 1 cr ( 100 lakhs ) would suffice to fill up 200 accounts

So , Rs 21,000 cr must have filled up , 42 lakh accounts ( 21,000 * 200 )  !

If we were to assume that even half of these got filled with " BENAMI " black money, that would mean , Government would need to investigate and file court-cases against 21 lakh persons !

That exercise would involve

*   Local Police Depts , alerting

*   IT dept , which will alert

*   Financial Intelligence Unit ( FIU ) , which will , in turn , refer the cases to

*   National Investigation Agency ( NIA ) , or to

*   Central Bureau of Investigation ( CBI ) , or to

*   Enforcement Directorate

The court cases will drag on for 10 years !

And , at the end , even if half of those 21 lakh persons are pronounced " Guilty " and punished with imprisonment , do we have jail facilities for 10 LAKH prisoners ?

And what would be the cost of this exercise ?

Now remember that Jan Dhan scheme has nearly 25.4 cr a/c

If only half of these act as conduits for Black Money holders to convert their ill-gotten wealth into WHITE money , can you possibly sue  12.7  CRORE poor citizens under the BENAMI TRANSACTIONS ( PROHIBITION ) ACT - 2016 ?

Just impossible !

I do hope NDA Ministers / Secretaries / Advisors etc , realize the futility of trying to sue MILLIONS of poor citizens

On the other hand , all through this crisis of past 15 days , the NDA government has displayed a very NON-BUREAUCRATIC and DYNAMIC approach in solving the problem of cash crunch , through a series of 15 / 17 , " Relaxation Announcements "

It is  STILL  NOT  TOO  LATE  for Shri Narendra Modiji ,  to turn this misery and pain of the ordinary citizens into an OPPORTUNITY for their long term benefit

By implementing the following suggestion( call it " Relaxation " if that is saving the face ! ), that I sent to him on  09 Nov 2016 :

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MY   SUGGESTION  :

Please allow those Black Money Holders to deposit those Rs 10 lakh*crore  in bank accounts created specifically for :

*    Prime Ministers Relief Fund

*    Armed Forces Relief Fund

*    Environment Rejuvenation Fund

*    Pollution Solution Fund

and , above all ,

*    BANMALI  (  Ban Mal-Nutrition in India  )  Fund

{   http://myblogepage.blogspot.in/2016/09/a-mobile-app-named-banmali.html   }

Some 1.2 million children ( under age of 7 ) , die in India  EACH YEAR , due to mal-nutrition ( since , you do not wish to call it " Starvation " ! )

If each of these children were to be provided highly nourishing food packets each day , costing Rs 50 per day per child , that would cost the Government , Rs 2190 Crore / year

By enabling channelizing those Rs 10 lakh*crore into these Bank Accounts , we will be able to convert that Black Money into White Money ( but for use by the POOR / NEEDY of the Society )

Will those  Black Money Holders come forward for such a DONATION ?

They will , if the Government promises that while depositing the old notes into these accounts , 

*  NO  QUESTIONS will be asked , 

*  Depositor does not have to REVEAL IDENTITY  !

*  There will be no UPPER  LIMIT

They have nothing to lose in this World and everything to gain in the NEXT  !

Far better than donating crores to religious temples / shrines !

Let those Black Money holders " donate " their hearts to the 1.2 million dying children !

I request Shri Narendrabhai Modiji to go, sit silently in front of Raj-Ghat Memorial and ask :

"  Did you say : To the poor , God appears in the form of a  ROTI   in their hands  ? 

  By allowing the Black Money Holders to save these children , am I going to lose face ?  "

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24  Nov  2016

www.hemenparekh.in / blogs

A Solicited Opinion ?

Through his mobile app , Shri Narendra Modiji has asked the citizens to give their opinion on the recent demonetization

Here are those questions - and my answers :

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1. Do you think that black money exists in India?  .................................................................YES

2. Do you think the evil of corruption and black money needs to be fought and eliminated?..........YES

3. Overall, what do you think about the government’s moves to tackle black money?...................GOOD

4. What do you think of the Modi government’s efforts against corruption so far?........................ GOOD

5. What do you think of the Modi government’s move of banning old Rs. 500 & Rs. 1000 notes?....GOOD

6. Do you think demonetization will help in curbing black money, corruption & terrorism?.............NO

7. Demonetization will bring real estate, higher education, healthcare in common man’s reach...... MAY BE

8. Did you mind the inconvenience faced in our fight to curb corruption, black money, terrorism

    and counterfeiting of  currency ?........................................................................................ NO

9. Do you believe some anti-corruption activists are now actually fighting in support of black

    money, corruption & terrorism?......................................................................................... YES

10. Do you have any suggestions, ideas or insights you would like to share with PM Narendra Modi ?

    READ  BELOW

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Dear Narendrabhai :

There is no doubt , you will receive lakhs of " One Word " answers to your questions listed above , since a mobile app is not suited for detailed descriptions of suggestions on a subject like " Elimination of  Corruption and Black Money "

This is the reason , over the past one year , I have sent to you ( and to most of your Cabinet colleagues ) , some 50 unsolicited emails , listing concrete suggestions on this subject

Withdrawing of Rs 500 / 1000 currency notes , was only a small part of those suggestions

In itself , this step is unlikely to eliminate future generation of Black Money

But having taken this , there can be no question of any " Roll Back "

Given this " fait accompli ", and your " soliciting " suggestions from the public , please consider the following :

#  IN  SHORT  TERM

    In the forthcoming budget , revise Personal Income Tax rates as follows :

    *   Upto  Rs  10 lalkh.............. NIL  tax

    *   Rs 10 lakh to Rs 20 lakh..... 10 %  tax

    *   Above Rs 20 lakh............... 20 %  tax

#  IN  MEDIUM  TERM

 *  From 01 April 2017 , introduction of a new Rs 10,000  denomination currency note , duly embedded with RFID chip

*  From 01 Oct 2017, withdraw current ( newly introduced ) notes of Rs 500 / 2,000 , ie these will cease to be legal tender from that date

*  Do not introduce replacement of Rs 1,000 note , currently under planning

*  Let current ( new ) notes of Rs 500 / 2,000 , co-exist / overlap ( during April-Oct 2017 ) , with Rs 10,000 RFID embedded note

 Why  ?

*  We want to permanently eliminate BLACK MONEY and CORRUPTION

*  We want our economy to move from a 2 % non-cash transaction to a 96 % non-cash transaction

*  We want this transition to happen by Dec 2017

*  Such a rapid transition is not possible to be achieved by relying on increased usage of Electronic Transfers / Mobile Payment Wallets / Credit - Debit cards / RuPay / UPI etc

 How  will Rs 10,000 currency note achieve such transition in ONE year  ?

*  Embedding RFID chip in Rs 10,000 note , practically turns it into a Credit Card !

   Whereas it is not possible for any issuing agency to issue a BILLION plastic credit cards - one to each Jan Dhan Bank account holder -, there is no problem for government / RBI to print and issue , a BILLION notes of Rs 10,000 ( duly embedded with RFID chip ) 

#  Can a RFID embedded Rs 10,000 note succeed in capturing all the data which a Credit card transaction manages to capture ?

*  Sure , a RFID embedded note too will capture ALL the data such as :

   >  Details of " spender / giver " of that note

   >  Details of " Recipient " of that note

   >  Date / Time / Amount of that transaction

   >  Details of " Goods / Services " involved

   >  Details of taxes paid ( Sales Tax / VAT / GST etc )

   

How will such captured DATA get transferred to Servers of IT / ED / RBI  ?

*   Each " giver " and each " receiver " of Rs 10,000 note will need to install in his smart phone , a IT Dept issued Mobile App ( called , VERIFIER ) 

*   Mobile app will have provision to enter details of this CASH  transaction 

*  When that Rs 10,000 note is placed flat on the screen of the mobiles ( of both the parties      ) , the data will get transmitted through internet , including the note serial number

 Will embedding RFID serve any other purpose ?

*  That is the BEAUTY of RFID chip !

    It will communicate to IT / ED / RBI etc , of any accumulation of ( say ), ONE THOUSAND or more number of such notes , in an area of 1 Sq Meter , anywhere in India !

So , Black Money will have  NO PLACE TO HIDE  !

And , this continuous / constant tracking of each and every note of Rs 10,000 , can even help determine the MONEY VELOCITY / Currency Maps  !

Will this avoid the pain / difficulty / harassment being faced by ordinary citizens during the past 15 days  ?

*  Yes , of course  !

    Since there will be an overlap ( concurrent existence ) of high denomination notes for a 6 month period ( April - Oct 2017 ) , both types of notes will continue to be accepted as legal tender and there will be no disruption of day-to-day activities of buyers and sellers

This overlap will give enough time for RBI / Banks to fill up 4,000 " Currency Chests " located around the country , as also modify / fill up , 2 lakh ATMs

Will Government need to keep as a " closely guarded secret " , the introduction of RFID embedded notes of Rs 10,000  ?

*  No need ! Let the black money holders try whatever tricks they want !

    After 01 Oct 2017 , the only CASH they can hide , will be either Rs 100 notes ( just impossible ) or Rs 10,000 notes which " Announce their GPS location " and cry ,

"  Help , please Rescue me " !

{  http://myblogepage.blogspot.in/2016/08/help-please-rescue-me.html  }

#   IN   LONG   TERM

From  01  April  2019 , totally abolish Personal Income Tax

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Dear Shri Narendrabhai :

I believe , you gave 2 hours of your precious time to listen to the proposal of Shri Anil Bokil ( of ArthKranti - Pune )

How about giving me just 20 minutes ?

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23  Nov  2016

www.hemenparekh.in / blogs

RIP , CREDIT CARD ?

Yes , if we are to believe Bill Gates

During his recent visit to India , he is supposed to have said so much !

Source : TOI / 19 Nov 2016 

Interview with Surojit Gupta :

Quote :

The US is not as digitized as Kenya is or Tanzania . I use credit card sometime. I use the cell phone quite a bit now but it's still a mixed thing and you know it is expected that the plastic card will go away in US in the next 4-5 years and then it will be just your cell phone

Source : Business Line / 18 Nov 2016

Quote :

According to sources privy to the meeting, Gates told Minister of IT , Ravi Shankar Prasad that  smart phones are better instruments than plastic cards and payment banks are more sustainable approach for financial transactions

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Now Bill Gates knows that , in USA , credit / debit cards have been around for ages and now number close to 1500 million ( roughly , 5.5 per person ) !

As against this , in India , credit / debit cards made their appearance some 20 years back and now number 723 million ( includes 697 million DEBIT cards, of which , 300 million are issued by National Payments Corporation of India , along with 254 million Jan Dhan Accounts )

This works out to roughly 0.55 card per person !

DISADVANTAGES  OF  PLASTIC  CARDS :

#  They need Card Readers ( Card Swiping machines  /  Point of Sales machines )

    In India, currently , there are only 1.44 million machines ; and 100 million retail shops !

    And , roughly 1 machine for 900 persons , as against 1 machine for 25 persons in

    China !

#  Usage of Credit cards is quite costly !

    Besides " Entry Fee " and " Annual Renewal Charges " , you need to pay an interest rate

    of approx 16 % on credit amount used. If you fail to pay in time, this can go up to 30%

    In many cases , this has ranged between 36 % to 48 % !

    As per RBI , as of end May 2016 , credit card outstanding has gone up to Rs 42,000 crore

#  There have been a large no of cases where hackers have stolen PIN and fraudulently

    used the card details to make purchases , without the knowledge of the owners . Then

    there have been many cases of " duplication " of cards when handed to a shop

#  Since dozens of Banks have issued hundreds of types / varieties of cards for all kinds of

    " purposes " , it is very difficult for a common man to select the most appropriate one

#   Procedure for getting a card issued in your name is lengthy, requiring many documents 

ADVANTAGES  OF  MOBILE PAYMENT APPS :

#  Of the total mobile phone population in India , ( around 1033 million ) , smart phones

    constitute 240 million . By 2020 , all mobile phones in India are expected to be smart !

#  Mobile Wallet apps ( Paytm  /  Oxigen  /  itzCASH  /  Paylo  / FreeCharge etc ) , have

    actually transformed a smart phone into a Card Reader / Point of Sale machine !

    They are saying : " Honey!  We shrunk the Machine to fit in your pocket ! "

#   UPI ( Universal Payment Gateway ) does not require you to give any of your bank a/c

     details to anyone !

     Just create your own unique " signature " and start transferring funds between

     participating banks . Soon , it will cover ALL banks and enable payments to

     sellers as well  !

    

#   Downloading of most Mobile Wallet apps is very simple and takes 2 / 3 " touches " on

     your mobile screen !

     Last week , CEO of Paytm said in a TV interview :

    " Nearly ONE MILLION persons have started downloading our app , EVERY DAY , since

     announcement of demonetization . We expect to serve 500 million users by end 2018 "

#   Hardly a day passes without some or other Start Up , releasing a Mobile App to deliver

     hundreds of Financial Products / Services ( including which ATM is full of notes ! )

     Do not be surprised , if P2Plending happens through mobiles in one year !

#   Mobiles have almost become THE DEVICE for all Online purchases , whether of goods or

     of services . In 2 years , entire E- Commerce will be through mobiles !

#   Through IndiaStack , expect entire E -Governance ( including ALL payment of taxes ) ,

     to take place through Mobile phones

     Same will also be true of delivery of all government services to citizens AND redressal of

     all grievances /complaints by citizens

#   A smart phone costing Rs 5,000 can do a hundred thing ( other than phoning and

     Video talking ), whereas a Point of Sale machine costing the same , can just do ONE

     THING ! 

 

#   And when high denomination notes get embedded with RFID chips ( embracingthe

     inevitable ), it will be a Mobile App (  Fak - e - Mon  ) , which will spell :

     "  RIP , CREDIT / DEBIT cards " !

If you find it difficult to believe Bill Gates , ask Sundar Pichai /  Satya Nadela / Nandan Nilekani / Mark Zukerberg  etc

They will tell us :

" India has the golden opportunity to overtake USA , by skipping the Jurassic Age of PLASTIC CARDS "

About time , plastic card issuers ( and manufacturers of PoS machines ) re-invented themselves  !

If they don't make themselves obsolete , someone else will  !

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22  Nov  2016

www.hemenparekh.in / blogs