Spreading rumours is quite easy. Especially after demonetization hundreds of rumours have spread on social media both in favour of demonetization as well as against!
Here is one such message which is spreading in WhatsApp messenger groups. It says, “Sir, think that a 100 rupee note is circulated 1,00,000 times. It will have the same value. Nobody will get any commission. But if it is circulated through cashless way, each transaction fetches 2.5% commission; that means 1,00,000 times 2.5% = 2500%, i.e. Rs. 2,50,000 (Rs. Two lakhs fifty thousand rupees) to service providers like Paytm or Jio Money etc., just for this one hundred rupees. So, it’s a perpetual golden egg laying goose gifted to the gang. That’s why this is the Mother of All Scams.”
When a person reads this message, anyone can feel that what the message reads is true! Why to unnecessarily make these private companies rich? What we owe to them? Moreover, these companies are already rich and by giving so much of money, we will make them richer. Let us see the other way round.
Let us understand why we need to go for less cash economy. When we deal with cash, in more than 50% cases, 5 – 24% VAT goes unaccounted. That is, anywhere between Rs 5 to Rs. 24 which should reach the exchequer is lost. When we consider the total transactions in the country, this amounts to crores. Cashless transaction will prevent this.
More importantly, the cash to GDP ratio in India has been significantly higher than what was desired. For an economy with GDP of 125 lakh crore, 4 lakh crore of cash is ideal. But India has 14 lakh crores. This much of cash should not have been there at all in the first place.
Now, coming to the second aspect, that is, why should we pay for private companies? Government has already provided a solution for that. Unified Payment Interface (UPI) is in place which makes the transaction very easy and hassle free. All transactions are free in this. Free download of app, free to use and more than anything the details of the bank accounts are camouflaged through a virtual address. It is also as instantaneous as other payment options. It is available round the clock for all 365 days of the year. It is secured through two factor authentication. It also has barcode based payments, similar to PayTM. Instant refund facility is also available in case of failed transactions.
So, when so many features are available with UPI and it is also addressing the concern of paying some private companies or some charges for transaction, why to keep blaming the government? If you really feel that it may lead to a scam by facilitating the private companies, then be a part of change by going for transaction method which doesn’t take any commission so that your Rs. 100 will remain the same but at the same time, gets accounted. Let us go ahead and download UPI app and contribute for betterment of the country.
You can reach the author on Twitter @aksharadamle