Currency note is a vehicle to transport money. When you earn money you are paid in the value equivalent to your efforts. People earn and save money because of the purchasing power it gives to them. Ideally people tend to save money in its transportable form i.e. Currency Notes and such storage of money leads to generation of black money and all its related perils. I have an idea here and its a very crazy or insane idea. Lets alter the ability of the currency notes to hold wealth them. Let me explain this. First measure is to make all the transactions paperless I mean people will use plastic money like debit cards or online money transfers or transfers using IMPS platform where paper money is not needed, you will say whats new in this idea many people are suggesting this since ages however there is a catch in this arrangement which is you can’t absolutely reduce or diminish the use of paper currency, its not possible and feasible. What you can do and thats where my idea comes into play
Print money as per the need with an expiry date clearly printed on it. These money printing machines can be tailored to fit into the Automated Teller Machines and when you would go there and insert your debit card and request for an amount the ATM machine will connect with the central server of your bank where you have an account and confirm whether you have balance to demand the withdrawal once your bank confirms and debits this amount to your account then the ATM machine will connect with the RBI servers and will get authorisation to print the currency using inbuilt printer. The money dispensed will have the date and time of printing the money and the expiry date of the notes. Now the person who is withdrawing money is taking out for some transaction so he will take the cash to the merchant or service provider to buy some products or services. The seller will take these currency notes by checking the expiry date and will deposit this money back to the bank. Once the money comes back to the bank, they will check the expiry date on the money and once found it to be legitimate bank will credit the depositor’s account and shreds the money. The same currency note won’t stay in circulation.
If this system is implemented people wont be able to store money in paper currency format anymore and whenever they demand money they will have to go to bank or ATM machines where the money will be printed for them. Once the transaction is complete the same money will either be destroyed ( Once it is deposited by someone who had traded his products and services to his own account in lieu of this money ) or unused money will expire in its value after certain time frame and the person who withdrew money originally his account would be credited for the difference of the amount.
- No black money will ever be generated as each and every currency note would be accounted for and if not used will lose its value.
- Each and every rupee generated will be accounted for and therefore government will be able to collect its taxes.
- If all eligible pay their taxes the overall tariff of taxation will fall down and you may end up paying only 2 % to 3 % in taxes.
As I said its very insane Idea but would love to know your take on this …..