The demonetization policy by the government to curb black money is seen as a very bold and positive step towards strengthening the economy. However the way it was implemented could have been bettered if enough supply of essential denominations were made available through the banks.
Now is the right time for the policy makers and advisers to think on ways and means to adopt ‘e-rupee’ cards for safer and accounted transactions that will fuel economic growth. Through the implementation of ‘e-rupee’ our country can set an example and set the stage for the next big economic revolution across the globe. Even now the developed and developing countries have appreciated the decision of the government as no other nation would have or will dare to attempt one as we did.
Crores are spent by the government to get the currency printed and ensure sufficient supply across the country through safe logistics. Only a portion of this money spent need to be utilized for setting up ultra fast dedicated servers, security systems and algorithms along with safe and secure communication channels. If all these can be set in place people would actually love to use ‘e-rupee’ for their daily transactions through bio-metric authentication or security pin. With the extensive use of smart phones ‘e-rupee’ can actually be another app for people to carry across.
Demonetization can be seen as a futuristic step by the government towards implementing ‘e-cash’ and cutting down on currency. Cutting down or reducing the circulation of currency can actually eliminate black money or money laundering in the system. Bigger denominations can be removed and smaller denominations of 5,10,20,50,100, 200 and 500 can be introduced with a reduced circulation of 500 currency.
Basic day to day transactions can happen with this along with coins and any transaction of higher values can have ‘e-rupee’ cards. The security measures adopted by many of the European countries can be studied for implementing the system in India.
Through this process illegal fund transfers to certain people, religious organizations and prohibited groups can be controlled and this itself will to a great extend remove many of the issues in the society, improve national security and bring about a financial stability and equality among the people. Corruption to a great extend can also be removed from the government machinery.
Similar to the government program to provide a bank account to every citizen the introduction of ‘e-rupee’ can also be successfully implemented over a period of 5 years. Being responsible citizens let’s wait to welcome ‘e-rupee’ for a brighter future, stronger economy and better business process.
(Views expressed here are of Sreeraj B Panicker’s who is the Manager – Corporate Relations and Marketing of Aster DM Healthcare, Qatar)