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