Making economy cashless

Making economy cashless will do good for nation but it should be done as a sustained mid to long term effort.

There can be gain without pain.

Justice says that not a single innocent person should suffer even if hundred culprits escape. Even if single innocent person die due to reform process, it is injustice done. 

Reforms must be gentle on honest and tough on dishonest.

Many things can be done to bring about a change and moving towards making a society free from corruption and black money.

Taxation
-  Reform and simplify taxation.

-  Abolish direct taxes and all other taxes except GST and following. GST should cover all transactions. With this more money will come to bank and will become part of white money circulation.
-  No tax should be more than 10%. Low tax will improve compliance.
-  Wealth tax. This should apply to all movable and immovable assets. This should be collected only once at the time of purchase.
- Custom tax on all goods bought and brought from abroad.
- Single annual Corporate tax for large scale business ( average of 2% of turnover and 10% of profit can be one such formula) 
- Unorganized sector should be issued annual license with nominal fixed charge. These can be further divided Category A, B and C depending on type and place of work, expected turnover, age of person and family background. 
 

Plastic Money and Mobile Wallets

- Government must issue credit and debit card in association with some public sector bank. These credit and debit card should charge fixed one percent that should go to government as service tax. These being cheaper will replace all other credit and debit cards and will raise revenue for government.

- Pre paid money cards like RuPay. These should be freely available at every corner. Any one should be able to exchange cash with these Prepaid RuPay cards by showing Aadhar Card. Card can be punched in that person’s name and all transactions linked. It should be possible to return and get cash back. These cards must be freely available at banks post office, institutes, offices, markets, petrol pumps, railway station, airport, bus terminals, religious places etc.

- Mobile Wallets – Different mobile wallets must be able to send and receive money across each other be it from any bank or private wallet.

- Promote Registered Mobile no and Aadhar Card no linked payment through simple sms and password. Make linking of every mobile number to Aadhar No mandatory. People may have many mobiles but have single Aadhar No so every transaction will get linked.

- There should be no transaction charges while using cards or wallets or any other epayment methods.

Cashless Zones

- With RuPay cards and other options available slowly various zones can be declared as cashless zones. To start with shopping malls, institutes and institutions, airports, railways and bus terminals.

- It should be made mandatory to make all purchases above Rs 5000 only through cheque, epayment or RuPay cards.

- All purchases through cheque, epayment or RuPay cards should get attractive cash back bonus points which should become part of bank account or RuPay account as long term deposit investment.

- It should be mandatory to pay all salaries more than Rs 5000 only through cheques or online transfer.

- Ecommerce websites should not be allowed Cash on Delivery. It can be Card on Delivery be it credit card or RuPay card.

Cash
Only by eliminating higher denomination notes above 100, all goals of cutting down on black money and promotion of cashless economy can be achieved. It will not be convenient for anyone to keep and carry loads of small notes. Small notes can continue to run small scale transactions.