In the event that we traverse India, in a solitary day itself, we can watch different examples of corruption, shocking destitution, beggary,employment of youngster work and so on. Media reports such examples for the duration of the day. 2G Scam, Fodder Scam, Commonwealth Scam, CoalGate….may be, we have seen many trick/debasement charges worth billions of open cash!!!
There is no silver slug for battling corruption. Numerous nations have gained noteworthy ground in checking defilement, however professionals are dependably watchful for arrangements and proof of effect.
One small step can stop corruption if everyone start using debit card payment, online payment, payment using credit card.
Here are five ways that citizens and governments can make progress in the fight against corruption:
- Make Business Registration and Bank Account mandatory with POS (point of sale) facility to do any business/benefit, independent of size of business.
- Bank account compulsory for all nationals including sellers/employees in unorganized sector.
- Stop cash payment for any transaction above certain amount suppose Rs.5000 and include PAN card of both (buyer and sellers) on invoice.
- Make it mandatory to generate invoice if the estimation of the sale is above certain amount suppose Rs.99
- Stop printing money aside from coins up to Rs.5 and cash up to Rs.10 or max Rs.50.
A transparent payment trail would ensure the entire payment processes trackable… This would be major initiative for good governance and would be an important tool in reducing corruption – Finance Minister Pranab Mukherjee
How this will affect sellers and employees in unorganized sector?
As soon as government control cash transaction, individuals will be compelled to finish government norms [ business, worker, seller,vendor whoever it may be]. So the individual who is working as housemaid needs to open a Bank Account and house proprietor [employer] necessities to pay the standard the lowest pay permitted by law to housemaid and no one can misuse neediness of a kindred national.
Next hurdle is, not all Sellers accepts cards and do not have card payment devices or digital payment options?
As per point#1 above, POS is already mandatory for all sellers and this would be must have device to start business like we already have current account option.
We are actually demoralizing organised business who is registered with government by completing all norms.
Prefer registered business and discourage business in unorganised sector. When some individual starts a registered business by fulfilling all government norms, paying rent and taxes, if a road side vendor starts offering a similar stuff outside shop [may sell the product with 50% discount because, no rent & tax], we are actually demoralizing organised business who is registered with government by completing all norms . As soon as we make point#1 mandatory to start a business, this will become another pool for revenue and clearly we can guarantee standard wage to representatives.
By making billing, mandatory for sale and cash transactions, 99% consumer exploitation shall be avoided. Quality of products/ services shall be improved.
How this will affect corruption level?
How would some individual get/give pay off? No cash bag or in close-by shop or relative’s home or secretary’s car. One can not request cash to be exchanged Bank Account or pay certain bills. All exchanges and bills can be observed and recorded. However there could be a possibility of purchasing an item/gift and blessing to someone else, inorder to influence the person. But there is a limit for this and the person, who has accepted the gift shall be in a very difficult position to dispose it off. Registration is mandatory to sell something and one shall be caught, if attempt to sell something without registration and license. So possibility of a legal sale is not there but somebody can go for Barter system. During an IT/ investigation raid, it will not be that much easy to give justifications and documentation evidence for all those gifts accepted. Citizen’s assets, digital cash, earnings etc., should be matched at any point of time and rest of the things can be declared as illegal by Government. When everything go digital, total net worth of any citizen would be available with Government and nobody can keep crores of rupees in water tank or in caves. That game is over!
How this will impact foreign tourists?
In the event that if different nations are not willing to cancel paper cash, it won’t influence us. The occasion, an foreigner or NRI arrives in any airplane terminal, offices can be given to change over the foreign currency to to digital cash in a cash card. Likewise Indians when travel abroad, can make utilization of the money card to draw outside cash.
Benefits to Economy
- All above changes can help in growth in organised sector that will create more jobs and redeployment would be pretty easy.
- As Bank Account is mandatory for a citizen, more than 100 crores accounts to be maintained and this shall create more opportunities.
- The cost to provide high security to print,store and circulate cash can be saved and no need to worry about fake currency.
- Child labor, Bonded labor, employing contract/badlis by showing minimum wage only in records shall be stopped. All employers shall be forced to pay salary through bank accounts only and this will make the job of Labor Inspectors and Government machinery, easy.
- If we introduce digital cash, beggary can be stopped. A person can not open a Bank Account for ‘beggary’ because end of the day, account holder shall be answerable for his/her income. Also no beggar can come with a with a point of sale soft pay kiosk!
- Robbery can be reduced to a great extent. Somebody can rob a product for their use but they can not stole and sell it and make money. One can not sell or buy anything without a Bank Account. Also remember that by digitisation of currency, RBI shall be able to know the net worth of any citizen and any transaction can be tracked.
- Sales/service/income tax calculations will be 100% accurate. This can make Tax evasions, absolutely difficult for individuals as well as firms.
- By making billing, mandatory for sale and cash transactions, 99% consumer exploitations shall be avoided. Quality of products/ services shall be improved.
- Sale of banned drugs, illicit liquor, smuggled goods, grey market stuff and sex trade can be reduced to a large extent.
Disclaimer :- Kindly note that this is expression of an idea based on beliefs and perception of author. Media reports, day to day observations, scams in public life, personal experiences etc would have been influenced that. This is visualisation of a solution and possibilities of technology and not based on any research, statistical analysis or authentic studies