How to eradicate black money, some suggestions
Praveen Bhatia | 17 Sep 2010
By this article I wish to give some suggestion to tackle the menace of black money & fake currency notes.
The process being suggested is not a easy one but it is certainly not impossible.
In the first step Reserve bank of India (RBI) will issue guidelines to all banks:
To issue all customers an ATM or Debit card without any charges,
To issue card swapping machines to all traders having account with them without any charges, (no charges on transactions – banks can manage this as they going to have very large amounts in savings accounts.
To equip themselves with finger print scanning machines as they will have to deal with a large number of illiterate customers,
To have adequate manpower (employees) to deal with extra ordinarily large number of customers.
To have a account of income tax.
Income tax office will be equipped with super computers to watch all the transactions.
In the second step Govt. of India will issue notification to every one in general:
There will be no cash transaction of the amount above Rs.999/-. All the payments/transactions of above Rs.999/- will have to be made by draft, check, Atm/debit/credit cards, gift cards, online transactions, or by any other means but not by cash.
A uniform rate of income tax @ 10% will apply to all citizens with annual income above Rs.3 lakhs. Property registration charges(stamp duty) would be 1% throughout the country after the stipulated date. Any one who has purchased the property before the issue of this notification and sells it after the stipulated date is advised to deposit 10% as income tax with any bank. No questions would be asked.
All the currency notes of denomination of Rs.50/- and above will expire on a particular date. Public in general is advised to deposit all such currency into their bank accounts before the stipulated date under normal procedures of law.
Those having black money with them can also deposit such money into their bank accounts by paying 10% of this into income tax account with the bank. They will not be asked about this black money in future. This can be done before the stipulated date only.
So if you have black money and have not deposited with bank, it is going to be of no use, as the value of all currency notes above Rs.50/- is going to expire on that stipulated date. Call back your money from Swiss banks or you will repent.
So on a stipulated date all the black money would either be with the banks or will have no value. After the stipulated date RBI & ITO will have their eye on all the transactions.
End of black money.
End of fake currency notes. Probably no one will print fake currency of denomination of Rs.10/- & Rs.20/-.
End of corruption. No will accept bribe of lakhs of Rupee by bank transfer or in cash n denomination of Rs.10/- & Rs.20/-. However people will try other routes by way of gifts. But it will certainly curb the corruption.
More employment. As the banks will have more of transactions, they would be needing more staff.
But if it is so simple, where is the difficulty ? It lies with our politicians, as they are single largest category of people having a major chunk of country’s black money. These 530 odd members of parliament will never let it happen.