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Digitisation to pave the future from cash-based economy to cashless economy in India
To crack down on black money and move towards digitisation and cashless economy in India - traditionally a cash-based economy, our Prime Minister has recently announced the biggest and most ambitious move of demonetisation.

After the announcement of demonetisation in India to control the black money, digitisation without transparency and accountability will prove to be a difficult dream.

Demonetisation is the practice of stripping a currency unit of its status as legal tender and replacing the old unit of currency with new currency unit. In fact, it is a radical financial step to restore the status and value of the national currency.

It is not for the first time that demonetisation of high-value currency has been done in India. It first happened in 1946 when the RBI had demonetised the then being circulated Rs 100 and Rs 10,000 notes. Higher denomination bank notes of Rs 1,000; 5,000 and 10,000 were introduced in 1954, but again demonetised by the Morarji Desai government in 1978. However, the main difference between then and now is that the currency of high denomination was very rare in circulation in those days.

It is said that just like the world is going cashless, India too will move rapidly towards a digital economy which will prove to be a game changer to help in reducing inflation. Demonetisation is now acting as a catalyst towards digital payments ecosystem.

Although there could be a number of ways to control black money but the initiative taken by Prime Minister Narendra Modi has been appreciated by one and all despite facing financial crisis and having to stand in long queues of banks to withdraw small amounts for day to day use.

While the Prime Minister claimed that demonetisation will help in controlling the black money, little did he realise that demonetisation could give space to big scams as due to new currency notes of Rs 2,000 now in circulation instead of earlier Rs 1,000 notes, double the amount of cash can be accommodated in the same briefcase.

The political parties are using it as a tool for the coming elections in UP and Punjab instead of appreciating the initiative taken by the Prime Minister, though initiated but not implemented so daringly. There is nothing wrong in it. The legal tender notes are not being denied by the government but the only factor is that each currency note should come once in the bank for monitoring the currency by introducing the cent percent digitization.

The other initiatives like Swachh Bharat; Beti Bachao, Beti Padhao and Make in India are also prime examples of how common man's participation can be sought.

Since demonetisation directly affects the common man on a day to day basis, it has been highlighted in the media but appreciated by one and all at all levels. It is not understood as to, why the demonetisation decision is being linked to the Prime Minister only while the Governor of Reserve Bank of India (RBI) has also played a vital role in it?

With the recovery of unaccounted old currency notes in abundance and replacement in connivance with the bank officials, there is a need to make more flexible policies to bring an end to the circulation of black money.

Frankly speaking, there is a great resentment among the public against the rich as the poor are the main sufferer due to demonetisation. The philosopher is of the view that when people suffer due to various problems for a long a time, they get empowered to show bitterness. In such a scenario, the government has to take care of the comforts of people. Secondly, the identification of a person keeping the black money is must.

Firstly, make the currency notes available in the banks in plenty so that none has to stand in a queue.

Secondly, Aadhaar is not being as widely used as it will be in the next 10 years from now on. If you want to identify people in a way that it is hard to conceal information (like to transfer digital payments), Aadhaar is the key for it.

Thirdly, the common poor people –labourers, rickshaw-pullers, small shopkeeper etc – are not the ones keeping black money rather they are being irritated by those who are keeping unaccounted money especially from the media reports with the recovery of huge currency. Since the lion's share of economy is in big hands, the need is extend maximum relief at the ground level people by enhancing the tax limits and increasing the interest rates.

One thing is certain that without transparency and accountability, the need of digitisation felt with the announcement of demonetisation would be a far-fetched dream to become true in real life, which has given vast power to leaders in the government.

The Modi government has started its journey against all those who are in favour and against his move to set right the whole system of debit-credit by each individual by introducing the digitisation by ensuring the availability of 24x7 power and internet facility to change he cash based economy to cashless economy in India.


Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of merinews.com. In case you have a opposing view, please click here to share the same in the comments section.
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