8th November 2016 will go down as a watershed moment in the history of India as a major economic reform was put into action that day. On that day, Prime Minister Modi took the world by surprise when he announced the demonetisation of 500 and 1000 rupees Currency Notes in his bid to crack down on black money. It is a fact that common masses of the country faced a lot of problems with the Prime Minister’s sudden decision, but the very same people appeared standing resolutely in support of the Prime Minister as well. This was the reason why in a country of 130 crore population, even after such a mammoth decision, no exhibition of public anger and ruckus were seen. In a country where the people get irked on slightest of inconvenience, the support of the Country’s majority was a silent testimonial of the success of the prime minister’s decision. The Opposition, however, hauled the government over coals for this decision, but it did not get support outside the galleries of power. People were firmly on the side of PM Modi and BJP’s huge victory in Uttar Pradesh elections attested the same.
This decision of the Prime Minister was appreciated not only in India, but also by foreign governments and agencies. They welcomed the ushering in of the era of a major economic reform in India. Not only black money was curbed in the country, but sincere efforts were put in to Cheque the further creation and consolidation of black money. The Modi government has been known to take tough decisions. This move of the government also delivered a death blow to counterfeit currency powered naxal and terror outfits of India.
The prime minister had announced from the ramparts of the Red Fort that if the disease is big, the treatment must be extensive too. The Prime Minister committed to take some stringent measures to boost the country’s economy in the coming times. In the last three years, two very tough policies were enforced by the Modi government, the first of course was the ban on 500 and 1000 Notes and the second one was GST, which again people confused. But like demonetisation, people of this country are in full support of the Historic Taxation Reform, especially after the rate cuts.
But that is not all. Another big decision is on its way. Prime Minister Modi can announce the end of the cheque books in times to come.
Cheque book facility to be closed
Yes! In the coming year, all kinds of transactions through the Cheque book may be stopped. Banks can ask for digital transactions instead of Cheques. For this, the government can soon table a road map. Further, the central government’s dream of making the economy cashless can be taken a notch higher. A senior official of the Confederation of All India Traders (CAT) industry organization said on Thursday that the central government can close the bank Cheque book facility in the near future to promote digital transactions.
80 million ATM cards in the country, only 5 percent used for Digital Transactions
There are over 80 million ATM cards across the country, but only 5 per cent of these cards are used for digital transactions. The remaining 95 percent of the cards are used only for taking out cash. Although the use of debit card in digital transactions has increased in big citie, but it is still a taboo for people in small towns and villages. The government needs to promote the use of debit and credit cards. It is likely that the government can take such a step soon to encourage digital transactions. If the Modi government wants to increase digital transactions, it is imperative that Smaller industries need to be switch to digital payments.
Government will increase the use of debit and credit cards, digital transactions
Prime Minister Narendra Modi’s vision of Digital India is slowly moving towards fruition. The way the country has adopted digital transactions after the note ban, it seems that in the days to come, India could be the global headquarters of digital transactions. By October this year the cost of digital transaction breached the 1000 crores mark. This is almost equal to total digital transactions in the financial year 2016-17. In the months of June, July and August, the average digital transaction of Rs. 136-138 million was made.
INR 30 Crores are spent in the Printing of notes
The government spends INR 25,000 crores annually on printing of notes alone and at the same time the government spends an additional Rs 6,000 crores on the security and upkeep of the notes. This Humungous amount can be saved by the government by creating a completely cashless economy. Although the dream of becoming a 100 percent cashless nation will not be so easy.
When Prime Minister Narendra Modi put the digital India concept in front of everyone, most people said it was impossible for a traditionally cash and gold driven Indian Economy but we are certainly above that mindset now.
Modi Government has the intentions of providing internet through broadband highway to every home in India. The second goal of the government is to make sure people of this country have access to internet enabled phones. Making Public Internet Access Point in Panchayats on the lines of PCOs is the third goal of the government and work for it is currently underway.