Embrace the Inevitable

#  What  is   Inevitable  ?

*  From 01 April 2017 , introduction of a 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  Embrace  ?

*  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 / CurrencyMaps  !

#  Will this avoid the pain / difficulty / harassment being faced by ordinary citizens during the past 5 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  }

#  What about crores of rupees that the Government just spent over the past 6 months , in printing the new notes of Rs 500 / 2,000  ?

*  Let us treat it as a price that we paid , in the experimental process of trying to Banish the Black !

Remember , this ( NDA ) is one government which encourages its officers to take honest and bold decisions , even if these turn out to appear as " mistakes " , in retrospect !

If and when they are convinced that they may have made an honest mistake , they do not hesitate to make a course-correction ! All in the interest of the Nation

Honest mistakes of " Commission " are better than the sins of " Omission , flowing from No Decisions !

#  Is it very expensive to embed RFID chips in plastic notes  ?

*  Here is what Sanjay Sarma ( a prominent researcher of RFID technology ) has to say :

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25  March , 2016

Dear Mr. Parekh,

Yes, placing tags on money has certainly been considered in the past.  I think it is a matter of time before it happens. I do agree with your idea. 

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13  Nov  2016

Hi Hemen,

It can be brought down to about 3-5 cents with scale.

Meanwhile check out a variant of the technology which is cheaper:

http://cdn.intechweb.org/pdfs/14423.pdf

Sanjay

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14  Nov  2016

www.hemenparekh.in / blogs