Control in money flow, Curbing corruption and Retaining black money

Capital is to the progress of society what gas is to a car. -James Truslow Adams

The power, stability and development of a nation is measured by the economic growth of that nation. Economic growth of a nation is measured by the strength of it’s currency in the global market.

The currency will get strength when a nation has a cash-rich treasury. To maintain a cash-rich treasury it is mandatory to control the flow of the money more specifically making money flow positive. To make positive money flow we have to set the processes which control and track the expenses and raise the danger alarm before its too late. To track the money flow the simplest way we can do to use plastic money rather than paper money. Plastic money means credit card, debit cards etc.

Also the government will take steps towards creating a Electronic Bank Card for every citizen. This card is same as a Debit Card but this card will connect to the each bank account of an individual and will work in place of the paper money. This card will have the value equals to the total amount available in the all account of an individual. Instead of using paper money individual should use this Bank Card to pay for the commodities whether it is for the taxi, auto or bus fare or purchasing from the grocery market. Each and every individual will pay using Bank Card only. This will make it easy to track the flow of the money from an individual to a corporate houses.

To improve the condition of the treasury we have to ensure that our export should be more than the import. This will bring foreign currency to our country and help in strengthning the Rupee. Once the Rupee will become strong, it gives the positiveness to the investors to invest which further makes the positive impact on the Rupee evaluation.

Once we track the money flow, it will help in resolving the biggest problem our country facing now a days i.e. Corruption. Use of paper money is a one of the main ingredient in the dish of corruption. I understand that it is very difficult for us to remove the paper money completely in the current scenario but we can take a step towards it by removing the high value notes like 100, 500 and 1000. We should use the notes of denomination less than or equal to 20. Also, we can make it mandatory that every transaction of equivalent or more than 100 will be done by plastic money.

Using plastic money will also remove the another problem we are facing in the form of Fake Currency. It is really a costly business for the enemies to print the Rs. 20 notes.

The burning Black Money issue will by default resolved once we replace the paper money by the plastic money. All the black money is of no use once plastic money comes in the picture. Either the defaulters need to bring the black money in front of the government or it will only use in the winters as a raw material of Bone-Fire.

Increased wages, higher pensions, more unemployment insurance, all are of no avail if the purchasing power of money falls faster. -Bernard M. Baruch

Also, government should overhaul the complete tax system because there are very less people in the country who actually pay the taxes with full honesty. Instead of direct tax, government should implement the indirect or transaction taxes. Once the government is able to track each transaction, it can easily recover a small percentage in the form of tax. Afterall, recovering Rs. 2 from 100 People is always better than recovering Rs. 20 from 5 people.

The only challenge I see in implementing this solution is Political Will.

No social system will bring us happiness, health and prosperity unless it is inspired by something greater than materialism. -Clement R. Attlee