Think of the benefits of cashlessness. Don't have to waste time counting notes and coins. All transactions can be tracked. Specially you dont have to face fleecing by taxi/auto drivers,vendors saying "chhutta nahi hai". Some cheats use sleight of hand to deceive. That will be stopped.
The writer is giving out incomplete and inaccurate information. There is a cost involved in management of currency such as ATM, Bank etc. Each ATM cost about Rs 50,000 per month to maintain so one can estimate annual cost of 2,20,000 machines. So many manhours are spent in Banks in managing cash. Public money is spent by enforcement agencies in tracking fake currency, Hawala transaction, Black money etc. etc.
The cost of cash is very high , its not just the printing cost.
Re: Incomplete and False
by Dr K Saravana Dr K Saravana on Jan 03, 2017 11:09 AM
Exactly, that is what the writer is telling you, that the cash economy is more expensive than the digital economy for the Govt, while the returns are exponentially windfall for the govt in the digital economy as compared to the cash economy. AND who bears the ultimate cost,, the man at the bottom of the pyramid, the consumer,, that is why this demonetization and transfer to the digital economy is called as "scavenging wealth from the Bottom of the Pyramid" that too, in an immoral and unethical manner by an elected govt in a democracy..
Re: Re: Incomplete and False
by sonya on Jan 03, 2017 05:53 PM
I agree MDR cuts margin but most retailers (or small traders) work on good margin and as volume will grow MDR will reduce along with completion. Government will get more money but then black money flow will stop and hence money earned will flow to build infrastructure and probably one day we might also get good health benefits and education benefits from government. I really think if we truly go cashless (almost) we will be a major super power in world.
Re: Re: Incomplete and False
by SUDHIR SINGHAL on Jan 04, 2017 11:33 AM
Your remark of cashless being "immoral and unethical" appears plagiarized from sub-standard anti-Indian US journals. Please come out with fresh
Re: Re: Re: Incomplete and False
by Dr K Saravana Dr K Saravana on Apr 04, 2017 12:03 AM
In your hurry to appear in the good books of your rulers, please dont miss the woods for the bushes!!!
there are so many complications related to pregnancy still people in our country go for more number of children. why r u so scared of demonetisation then in particular? why dont you write anything about the huge population and its ill-effects?
Re: more dangerous--demonetisation or high fertility rate?
by Dr K Saravana Dr K Saravana on Jan 03, 2017 11:17 AM
Right, The Govt does not have an agenda of promoting pregnancy or child birth.. On the contrary, the govt has programmes to control population growth.. Here ppl are wary of the govts moves on demonetization because the way it is being implemented, it is only ending up removing the only security that ppl at the bottom have,, their own hard earned money..Facilitating deposits and limiting withdrawals, skewing 90% of the loan disbursal to only the top 300 corporates and their employees/benamis/cronies, Skillful neglect of politically aligned black money hoarders, selective targetting of opposition black money hoarders, political opportunism for electoral gains without necessary infrastructure is what it troubling people in particular...
America, Japan and Germany don't have caste based reservations. So, why do we have them? Every country is different. We need digital because the curse of black money is very high.
Just look at the GDP to tax ratio of all these countries!! India has the least GDP to tax ratio of all major countries!! That means we have an economy the size of britain, but the taxes paid are the size of bangladesh. How will this work?
Re: No reservation
by Dr K Saravana Dr K Saravana on Jan 03, 2017 11:23 AM
Yes, if the tax base is going to be high and if the govt is going to earn more, then why burden the common citizen with the cost of digital economy, why cant the govt waive of ATM transaction chgs, NEFT charges, IMPS charges, MDR charges etc so that the citizen ends up paying at one point for his direct tax and govt uses that tax money create and maintain the digital infrastructure which is going to cost way less than the cost of printing money anyway..THe govt is anyway profiting by spending less in the digital economy than the cash economy..why not pass on the benefit to the consumer??
Re: Its all Rediff about..
by Niranjan Gandhi on Jan 02, 2017 08:56 PM
You are missing the point. The author has not said anything negative about demonetisation. He is talking about cashless transactions. Please read carefully before jumping at his throat with one-track mind - to somehow and everywhere justify demonetisation. It is you who needs to change track.
Re: Re: Its all Rediff about..
by coreindian on Jan 02, 2017 09:07 PM
there are so many complications related to pregnancy still people in our country go for more number of children. why r u so scared of demonetisation then in particular?
Re: Re: Re: Its all Rediff about..
by Deepak Kumar on Jan 02, 2017 11:13 PM
Even the first timers are still giving birth in Trains and Dead bodies are carried on single shoulder.
Re: Re: Its all Rediff about..
by Prashant Patil on Jan 03, 2017 10:55 AM
Niranjan, you are missing the point here... going cashless or less-cash is very critical to avoid the demonetizing efforts in future... if we are atleast 80% cashless, it means most people are in mainstream except some petty-cash, hence chances of black money making a come-back is very less.
are we people paying the cost of inefficient departments. Child traffiking - law and order - what are the police doing black money & corruption - what are Income tax and Anti Corruption Bureau departments doing Due to the collective failure of these departments and govt inefficiency in getting the work done by these departments, the people of india are paying the heavy price.
now coming to digital payments most of the people in india are unable to get 2 meals a day and govt expects them to buy a smart phone, get a net pack or internet and maintain the minimum balance in the bank accounts and make online payments and mobile payments. who will pay for these smart phone, internet or mobile data etc.
And above all most of these people cannot read or understand english. how many banks or apps provide digital payment in language other then english. even if banks and apps are provided in hindi or any other language how do the mobiles support the fonts other than in english language. arent we expecting too much.....
How come we are able to to RTGS / NEFT etc, with ease today ?. In case technology has loose ends it will be tied up. Imagine carrying huge amounts of cash even for genuine transactions (not black money). Foreign country, people are educated, cash can be tracked. It is not possible in our country. Let the cashless transactions go up to 20% or 30% of the total transactions, still it is worth. We have not attempted these things so far. why be pessimistic ?
