Way Forward on Demonetisation
Per media reports, as much as 97% of the banned notes are back in the bank amounting to 14.97 lakh crores and half of them have been withdrawn already.
The circle recommendation few backs was to restrict withdrawals for 6 months to the higher of 12 month average account balance (pre-demonetisation) or 50,000 per month and while this is going on identification of accounts with laundering must take place using big data analytics leading to action.
Is the above still the best way forward? If you have other specific solutions, please suggest those so these steps can be taken and positive results be driven out of the Demonetisation scheme. more
Half withdrawn, then the other half is with the banks and Govt (the tax/fine collected). People need to be told how that money is being used - loans to small genuine businesses, development projects, job creation, better public schools, etc. then the public will be very happy. Additionally, every week catch a few top black money holders, counterfeit currency printers, corrupt bank employees, tax evaders, and punish them quickly - publicize it well. Average citizens love to see the criminals finally getting caught. That will make all the sufferings worth it, citizens will feel like a part of Modi-ji's clean India movement. more
Cyber Control is the main issue to be 100% effective . more
The govt. is at present spending their energy and manpower on black money earned by individuals and industrialists where there is large scope for genuine reasons and the govt is unlikely to get a good score.There is no follow up of politicians who have made lakes of crores in short period of political life.To make things worst the politicians hoard the money as any other commodity while in the case of others the black money is employed in some form to increase the GDP.Further the central govt. and State Govts spend trillians through their budgeting every year where substantial portion goes as kickoff.I feel the Govts at the Center and states are the largest creator of black money in India.Unless more focus is given on this matter it will be difficult to control black money. more
Yes scrutiny of all the major accounts where more than Rs. 50,000/- money has been deposited as well as bank accounts which did not see disproportionate amounts in the past 12 months should be scrutinised. more
Introduce a smart cash card 1)It should be available at all the major stores,post offices,banks and all possible locations we can think of. 2)Anybody should be able to purchase it at a minimum fee of 25-50 Rs after producing valid ID card. 3)There should be a limit for the maximum amount that can be available at any point of time in the card for purchase ..Eg Min 100 Rs and Max 5000 Rs 4)It should be possible to recharge it with Netbanking,mobile banking,mobile ewallet and by paying the cash at any of the shops and outlets with computer and net connection. 5)It should be acceptable by all the merchant outlets,toll plaza,metro rail and anything that we can think of 6)It should be possible to block it from any of such locations after providing valid ID proof Advantages--- 1)The transactions will have a record 2)convenience....Physical money turned into plastic money 3)There will not be any need to carry bank ATM cards all the time 4)Anybody from home or any outlet can recharge it Actual use case---- I experienced this mechanism at Taiwan and it works really well. Although I was a foreigner ,I got it easily from a shop...He recharged the card with the cash.. I used it for travel in Metro..The only thing that was required to be done was swipe it at boarding station and the destination station..The amount was automatically deducted.. There was no balance once and I had to travel in metro,I got it recharged easily at the swiping centre.. more