Fighting Black Money - A small mite from my side

Hi!

Had sometime back written to all major newschannels/newspapers this article ...guess the mainstream media were too  busy

Dear Editor

　

As a concerned citizen of the country would like to bring to your notice the menace of counterfeit currency & its links with spread of terrorism. While no one knows for sure the extent of this menace but some estimates(Naik Committee) have put a number of 1,69,000 Cr or 33% of the total currency in circulation in the country till year 2000. This is a mind-boggling number & can also be the cause of runaway inflation & the scarcity of essential resources seen in recent years. Biggest worry is  this enemies of our country are using counterfeit currency as means to fund their real-war against us. I would like to bring to your notice that the problem is so acute that in border areas people are showing higher acceptance for foreign currency compared to Indian-currency (true in areas bordering Bangladesh/Nepal/Bhutan/Myanmar etc)

While RBI & banks have been taking measures to tackle this menace but the measures taken by them is only reactionary & will not dissuade the real perpetrators from continuing their activities. While continuing with the preventive measures would request government to look towards the following measures to weed out this problem from root.

I) Dissuade the counterfeiters by abolishing currencies of bigger denomination - We can consider abolishing currencies of denomination Rs 1000 & Rs 500 immediately (we may look at abolishing Rs 100 denomination too at a later stage).

There are multiple benefits in abolishing bigger denomination. Counterfeiters would need to print more notes to inflict same amount of damage as earlier. They would also need to carry/smuggle large number of notes which would be easier for authorities to target. With 1000 Rs note, you need only one bundle to carry Rs One lakh where as you would need to carry twenty such bundles if they had option of Rs 50 only. Basically you are decreasing the efficiency of counterfeiters by introducing this move. Remember the bigger the denomination bigger the aid to counterfeiters

II) This would also curb/reduce large number of transactions which happens across the markets(especially wholesale) in the country - in cash. A lower denomination would reduce the capacity of people to carry large volume of transactions & would push them towards cash-less transactions for want of any other efficient mechanism

III) Long term solution would be to push cash-less transactions in a big way. Currently huge number of cash transactions happen which are beyond the purview of any regulation & consequently government loses a big chunk of its review in form of forgone taxes. There needs to be a massive push towards cheque, card-based & internet based payments.   With advent of cashless transaction a portion of such transaction would leave an audit trail & would make tax/duty evasions difficult. To implement this a system of incentives & disincentives would  need to be introduced to push cashless payment mechanisms.  As a first step on can target organised sector to avoid cash in their transactions. For eg All salaries mandatorily need to be credited in bank accounts, all merchants need to install POS systems to facilitate payments & a floor % can be kept as the value of transactions which is routed through payment mode.        

　

Thanks & Regards,

H Mani

In response to Vir Sanghvi's article on Mr Sudarshan

Dear Mr Sanghvi

I was actually awaiting your comments once the controversy erupted & you didn't disappoint me. Boy you were quick. Third day of the controversy, your column was up & running with full of advice for the main opposition party of the country & the liberal talks of yours. Anyone in the country wanting to learn 'liberal talk' must tune to your column - its so rich with the adjectives you have been able to conjure up against Mr Sudarshan/RSS & BJP.

Let me tell you few things...You are wrong when you say that mainstream media ignored what Mr Sudarshan said about Ms.Sonia. All of them, be it print or otherwise, did report it. After all its not only Hindustan Times which needs government(congress) ads. Every one needs to make a living. They too need money to drink fine wine/scotch & dine in the most expensive restaurants of India.

Your concern about BJP was heart rending. Guess, all the functionaries of the BJP would have taken note your emotional outpourings by now & would take appropriate measures to distance themselves from RSS. Only if RSS was not there, most of the liberals of the country would have given second thought to BJP! But alas these nincompoops from BJP who have not been bred in Oxford or don't have any 'white-streak' in them are not going to understand this ever & would continue to hanker for the old men from Nagpur! ....After all, how can Nagpur ever be the guiding light for anyone? There are no good convents there...These lunatics from Nagpur can only talk about Bharat/Bharatiyata/Rashtra etc ...I bet none of them can identify a single malt from a blended one! Disgusting, isn't it?

Mr Sanghvi, pls check you facts before you shoot. Mr Jaswant singh was made external affairs minister in the cabinet as situation then demanded it. Mr Singh was the best man for engaging USA & hence he was made the external affairs minister, Mr Singh did eventually become finance minister ...wonder if RSS had a change of heart in those 2 years.

Mr Vajpayee & Mr Advani both were Swayamsevaks of RSS...yes they were members of your bogey organisation.

RSS will exist so long as Bharat/India exists. Unlike you & your political masters these OLD men in Nagpur have only one concern - the nation - ensure that the nation staves off the perils - both from within & outside. While you live of this country, they live for this country!

You will not understand this...for your sensibilities don't lie here on this soil...You are like mobile republics as so eloquently defined by your ilk. You will 'use' India & move-off


Harish