Phew! At least there is still some
time left before the next year and I hope am not too late to pass on my pearls
of wisdom (as if anyone cares meh :/) on the much debated topic:
“D-E-M-O-N-I-T-I-Z-A-T-I-O-N!”
Since Didi, Kejru, Rahul baba all of
their attempts have been failed to initiate a demonetization rollback, the time
is ripe to analyze what could possibly be in store for the nation.
Apart from the obvious pains (short
term slow down, discomfort, etc.), the popularly stated gains are: Curbing of
the black money (especially used for funding terrorism activities) will
unconditionally benefit the government (no matter if the black money is
reported or not) and of course transition of the Indian Economy towards
Digitization! (*tiding* here comes another much debated topic)
So, what makes us think that digitization
will curb illegal transactions?
I agree, the building up of a cash
based black money will be a bit difficult after the planned withdrawal of the INR
2000 note. But I think it will become even easier for terrorists and frauds to
steal our hard earned money when a plethora of our critical information is
available right there on the database, in the absence of high online security mechanisms,
which definitely can’t be built overnight!
Coming to the availability and
accessibility.
Firstly, smartphones (the cheapest
and the most convenient way to access internet) will become essential to make majority of the digital transactions possible. But only 17% (lowest among
BRICS) of the total Indian population own smartphones.
Lastly, what about the availability of
internet connectivity at affordable prices?
Umhh ok! Mukesh Ambani is taking care
of that very well, but the actual results would be seen post 31st
march (It’s highly in the interest of the government as well as the nation that
the JIO juggernaut should keep on rolling in order to achieve sustainable digitization).
So, taking the figure of 17% and
adjusting it for the literacy / willingness to migrate, (a highly optimistic guess)
around 15% will be able to reap the benefits of digitization. (The JIO effects
are yet to be seen in the numbers which would be clearer post the “Happy New
Year” period comes to an end.)
Hence, though the intentions of the government
are undoubtedly right, a no hush hush and proper, infrastructure and security mechanisms
for digital transactions, are required in order to avoid another policy
paralysis (and this time we can’t afford the paralysis given the huge amount of sunk
cost involved!).
P.S.: It’s good to see how we, the
Indians are trusting and supporting our Prime Minister. Now, the onus is on the
Modi Government to make our nation walk the path of sustainable economic upliftment
after taking this right, albeit a bold step towards making India a digital-corruption
free nation.
Some People want it to happen, some wish it would happen, others make it happen.
-Michael Jordan
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