CASH TO LESS CASH , CASHLESS SOCIETY- GROUND REALITIES

CASH TO LESS CASH , CASHLESS SOCIETY- GROUND REALITIES

Government in last 15 days is talking more about moving to less cash & then to cash less society in phased manner. Demonetisation is a welcome move, but when it comes to implementation, serious lacuna is being observed in field. Reports such as already 70% of banned currency reached banking system as on date through large scale money laundering & further expected to reach over 90 % soon, large accumulation of Rs.2000/- notes by individuals reported etc are strong evidences and GOI needs to submit white paper on its implementation strategy.

GOI has to clearly explain how it is going to handle black money already recycled into system through benami accounts. If new currency is printed & circulated into banks, matching with the banned currency, there is a strong possibility of huge currency reaching back the bunkers. Printing of less physical currency will have huge currency shortage and balance of payments problems for plastic currency.

It is an welcome move to see that different state CMs are trying their level best to resolve currency shortage in coordination with RBI & GOI, unfortunately very little or no impact is felt as on date.  AP CM statements on cashless ration, large scale promotion of plastic currency are yet to reach the ground level situation. It looks like that the governments are talking more about new programs rather than effective handling of existing systems. For example the moment the currency ban is announced, though the old notes are still valid, many places the same are not being accepted including in  institutions, swiping machines not working for reasons best known to them etc are reported and a very little could  be done by government to control such incidents.

Yesterday I was in Tirumala and card transaction is not accepted by TTD for our accommodation or for darshan tickets. Evening we went to a posh hotel to have dinner, welcomed with three notices- Old Rs.500/-, 1000/- notes not accepted, Debit/credit cards are not accepted due technical reasons, Rs.2000/- notes will be accepted for bills over Rs.1500/-. As we were feeling shortage of cash, looked for ATMs & with great difficulty could draw Rs.2000/-. Payment was made against bill submitted and while giving change the bill was not given back. On insisting for bill, we were presented with another bill, not the one which he gave initially. These are raising serious doubts about the hotel billing system and their evasion of VAT & other taxes. It could be the reason for them not accepting the cards. Similar situation of non acceptance of card is observed at Balaji restaurant outside the airport and stores inside the airport. After listening to our conversation on cash transactions and difficulties faced by public, the cab driver narrated that Ruia hospital (State) did not accept bill of Rs.18000/- in old cash or in card form.

I am sure; most of us must be facing similar situations in our daily walk of life more particularly in last 25 days. If the Governments is not able to handle the existing malpractices with iron hand, how do we expect them to bring in new systems and implement them?    

UNLESS UNTIL GOI & STATE GOVERNMENTS WORK TOGETHER, UNDERSTAND THE GROUND REALITIES AND WORK OUT PROPER IMPLEMENTATION STRATEGY WITH CLEAR ROAD MAP, THE LESS CASH OR CASHLESS SOCIETY WILL REMAIN AS A DREAM ONLY.

B G Reddy

grbonthu@gmail.com, 9866889246