(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.