(GIST OF YOJANA) Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana

 (GIST OF YOJANA) Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana

The Government seeks to promote digital payment methods to encourage consumers and merchants to increasingly shift to these payment modes. To take this imitative forward, Lucky Grahak Yojana for Consumers and Digi-Dhan Vyapar Yojana for Merchants was launched recently. The schemes are aimed at encouraging people to move towards significantly higher usage of digital transactions through the offer of incentives. The schemes will be implemented b National Payments Corporation of India (NPCI). Only those transactions that take place through RuPay Cards, (USSD) Unstructured Supplementary Service Data, (UPI) Unified Payments Interface and (AEPS) Aadbaar Enabled Payment System are eligible for these schemes.

The Adverse Consequences of Cash

Paper currency is a zero interest anonymous bearer bond. It has no name or history attached to it. Crime can take place with or without cash but excessive cash as a medium of exchange is favoured by the underground economy. It results in non-compliance in the matters of tax payments which creates an unjust enrichment in favour of the evader as against the poor and the deprived. Mountains of cash money reach tax havens through the hawala route from the original paper currency. Cash facilitates real time untraceable payments. Cash is the medium which funds bribery, corruption, counterfeit currency and terrorism. Ethical and developed societies aided by technology have consistently moved towards banking and digital transactions as against the excessive use of cash. Paper currency opens the doors for many vices. When Governments are able to collect more tax from tax evaders, they are in a better position to collect less tax from everyone else. Reducing cash may not eliminate crime and terrorism but it can inflict serious blow on them. States have shown that the-stores of cash do not disappear on their own till Governments take active steps to reduce the quantum of paper currency.
The Prime Minister's decision to replace the high denominational currency and eventually demonetise it required both courage and stamina. The implementation of the decision carried pain.

It can lead to short term criticism and inconveniences. - Drop in economic activity on account of the currency squeeze during the remonetisation period would have a transient impact on the economy. The decision involves high level of secrecy and printing substantial amounts of paper currency, distribution through banks, post offices, banking mitras and ATMs.

The period of pain and inconveniences is getting over. Economic activity is being restored. The banks today admittedly have a lot more money available in order to lend for growth. Since this money constitutes low cost deposits with the banks, it is bound to bring down the rate of interest. Both these things have already happened. Lakhs of crores, which were Boating in the market as lose currency, have now entered the banking system. Not only has the money lost is anonymity, it's owners, after being taxed, are entitled to put it to more effective uses. The size of the banking transactions and consequently the size of the economy is bound to increase. In the medium and long run, the GDP would be bigger and cleaner. Money entering into the banking system and officially transacted would give an ample scope for higher taxation both direct and indirect. The Centre and the State Governments would both stand to gain. The economy would also be serviced by both cash and highly digitized transactions.

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Courtesy: Yojana