Nov 2016 to Dec 2016 demonetization seemed to be a buzz word. So much so that there were many elements who tried to demonize 'demonetization' and yet Modi stood victorious in most elections that followed demonetization. He promised 50 days to bring in normalcy and come Dec 30 we did see huge decline in ATM lines. So now I see the new target is the term 'Cashless'. And the same elements are trying to demonize cashlessness.
Here is my take on it.
Did you know that about 1.6 crore paid tax in the year 2012-13? That means just 1% of the nation is bearing the financial weight of the entire nation. Doesn't this ring any bell? With so many rich people around, does it make sense that only 1% of the nation's population bear the burden of the whole nation?
How do we know how much money people have? Unless we enforce cashless transactions, it would be very difficult to monitor who is hiding how much wealth? Unless of course the myth of the super powers of Rs 2000 currency are true. Every single digital transaction can be recorded.
So whether it's Paytm, Jio Money or any mobile wallet transaction or any Credit Card transaction, every transaction can be recorded and accounted for. With this level of transparency, there is a good chance that people would pay the due tax.
And when so much of money comes in banking, it helps in generating good amount of credit. This in turn helps the economy. In layman terms, when banks get more money, they get more power to give more loans. Thus the supply of loans increases. This will benefit people who need loan. This will help entrepreneurs, people buying houses, cars etc.
There is an argument floating that the govt has taken this step to favor certain big industrialists. And gullibles are easily falling in that trap.
Cashless economy is a service. Credit Cards offer you a credit of 45 days. Who would pay for that? Huge expenditure is needed to maintain security of the digital transactions made, who should pay for that convenience? Nothing comes for free. Where there is a service there has to be a fee attached to it. They primarily charge the vendor and the banks. Certain vendors pass on the charge to the end user while others succumb to competition and wave off that charge. As end user you can take an informed choice of whether or not that trade off works for you.
Yes this policy of govt is going to help certain industries. But then that is true for every government policy. Should we be restricting every government decision just because it specifically favors certain industry? I think it is important for us to look into the larger picture.
Here is my take on it.
Did you know that about 1.6 crore paid tax in the year 2012-13? That means just 1% of the nation is bearing the financial weight of the entire nation. Doesn't this ring any bell? With so many rich people around, does it make sense that only 1% of the nation's population bear the burden of the whole nation?
How do we know how much money people have? Unless we enforce cashless transactions, it would be very difficult to monitor who is hiding how much wealth? Unless of course the myth of the super powers of Rs 2000 currency are true. Every single digital transaction can be recorded.
So whether it's Paytm, Jio Money or any mobile wallet transaction or any Credit Card transaction, every transaction can be recorded and accounted for. With this level of transparency, there is a good chance that people would pay the due tax.
And when so much of money comes in banking, it helps in generating good amount of credit. This in turn helps the economy. In layman terms, when banks get more money, they get more power to give more loans. Thus the supply of loans increases. This will benefit people who need loan. This will help entrepreneurs, people buying houses, cars etc.
There is an argument floating that the govt has taken this step to favor certain big industrialists. And gullibles are easily falling in that trap.
Cashless economy is a service. Credit Cards offer you a credit of 45 days. Who would pay for that? Huge expenditure is needed to maintain security of the digital transactions made, who should pay for that convenience? Nothing comes for free. Where there is a service there has to be a fee attached to it. They primarily charge the vendor and the banks. Certain vendors pass on the charge to the end user while others succumb to competition and wave off that charge. As end user you can take an informed choice of whether or not that trade off works for you.
Yes this policy of govt is going to help certain industries. But then that is true for every government policy. Should we be restricting every government decision just because it specifically favors certain industry? I think it is important for us to look into the larger picture.
No comments:
Post a Comment