Rise in Currency-Circulation undo advantages of Currency-Demonetisation
Bureau,Odishabarta
New Delhi:It refers to annual report of Reserve Bank of India (RBI) revealing rupees-2000 currency dropping to rupees 245 crores from earlier rupees 274 crores but overall currency-circulation rising year after year undoing sought advantage when old currency notes of rupees 500 and 1000 were demonetised on 08.11.2016. It is evident that by and large rupees 2000 notes are used to park black money. RBI report of last year had revealed another dangerous aspect of considerable increase in fake currency of rupees 200 and 500.
Instead of another demonetisation, Central government can direct compulsory deposit of rupees-2000 currency-notes in bank-accounts by some stipulated date. It will not affect poor and middle-income having rupees-2000 notes because presently most of countrymen or their family-members bank-accounts. Simultaneously a Voluntary-Disclosure-Scheme charging 50-percent disclosure-tax on unaccounted money can be introduced. For future, cash-withdrawal limit of rupees 96000 per month to be gradually reduced to rupees 48000 per month can be imposed to promote digital payment and bank-transactions. Transaction-charges on credit and debit cards can be reduced to just half-percent that too to be borne by central government to encourage use of credit and debit cards where presently high two-percent credit-card charges are to be borne at times by consumers especially in commodities with low profit-margins. Tax-laws (both direct and indirect) should be simplified for voluntary and cheerful compliance by restoring upper Income Tax slab of 30-percent as was recommended by Raja Challaih Committee. Study should be made of Sweden where just two-percent is currency-circulation out of total transactions. Even China and United Kingdom perform fair towards being cashless economy after Sweden.
Input;Mr.Subash
