How to save your nation’s economy from disruption.


How to save your nation’s economy from disruption. 

AUTHOR: ABRAHAM PAUL P.

Short link: http://wp.me/p1ZsI2-10w

Universally Governments Operate Money as Commodity. (UGOMAC)

#UGOMAC is about many things I had been writing over past two decades:

  1. How #MoneyThroughMobile (mTm) Technology can help to quicken #InclusiveGrowth.
  2. The urgent need of having exclusive #PaymentBanks under RBI/NPCI.
  3. Universal uniform Payment Methods in the Country using UUID.
  4. The Power and Perils of Money Going Virtual, how to convert it advantage.
  5. Need of regulating influx of Private e-money businesses, role of RBI in it.
  6. The urgent need of the prerequisites taken up and done in the developing countries on war footing basis to smoothly move over to digitalization.
  7. How Governments across the World can generate enough revenue for its needs by operating their money as commodity without burdening poor and commoners with too many taxes.

I wrote and published many papers on these in my blog wp.me/p1ZsI2-4g  in paulsblog.wordpress.com.  In fact, I happened to have devised and tested out the idea of Money through Mobile (mTm) in early 1996 along with implementing the first IN based GSM Mobile Pre-Paid Service in India. Visualizing its disruptive potential, I did not venture to do it myself then. Since then I had been persuading the Federal Governments, Finance ministers, Planning Commissions, the Political Masters, Bureaucrats, et all. Unfortunately, neither Governments nor the Print & Visual Media took note of my papers on these in papaulsblogs in WordPress.com and thousands of Tweets and dozens of writeups in Print and Main stream media. (Thanks to the few kind enough to report some, now and then.)

Nonetheless, it was good to see finally Sri Raghuram Rajan, the Ex. Governor RBI  approve Payment Banks (too many though), also pushing NPCI to create Uniform Payment Interface UPI and initiating the formation of Consortium of authorized as I had been persuading for many years as can be seen in my many papers published in papaulsblog  Thanks to Sri Nandakani for creation of Aadhaar the Indian version of UUID, one of the important ingredients; well before it with many teething problems though, privacy issue is one of them.  (There is nothing known as perfect in PLANNING, wait for it and nothing happens. Moving ahead using the best of the contemporary, always with an eye on the future, is the way to go.)

However, with change of batons in Governments /RBI; the momentum seems to have lost except in sloganeering by Political Masters, top to bottom in Government and every T, D & H in the Party.  Digital India, Cashless India etc., and other learnt by heart and badly knit jargons became the catch words of everyone, knowing anything about it or not, everywhere, in place or else.

Then the State elections wanted some a quick fix vote catcher ideas; an ill planned and quickly baked Demonetization idea was handy that worked politically well but Government lost the Rods, line, hook and baits in the economy front.

Nonetheless,  I continued persuading  the Government,  RBI/NPCI and heads of Banking Industry to move on and also tried my best to convince them about the lurking  dangers of fast mushrooming private e-money businesses that left unregulated will guzzle up Physical money diminishing liquidity, drain Banks killing Banking Industry and eventually the parallel economy of #VirtualMoney created by business houses with such unscrupulous methods of day light robbery will disrupt Nation’s Economy as explained  in my paper on “Power & Perils of Money going Virtual” wp.me/p1ZsI2-Ku

True that Advance of Technology disrupt the path it grows. But the World cannot remain silent spectator allowing such a catastrophic situation pass on without doing something about it. The way out is to walk the disruptive path, and walk all the way until ways and means found to convert it as advantage; adv. Government and adv. People as I had been suggesting for long to everyone concerned,  how it can be done in my paper “Inclusive Growth, Eradication of Corruption / Black  Money, #Cashless Society, better restraints on Terrorism – all in one go” and a also a side product ‘Tax Free Regimes’ as a Bonus. Please see how, in my paper in the link wp.me/p1ZsI2-XG  Nothing new, no Rocket Science. I gave presentations on these in Institution of Engineers, Trivandrum, two years back.  Further, the above idea, a first of its kind, can find its application and adaptation in Countries across the World as suggested in my paper #Universally Governments Operate Money as Commodity” on how Governments can generate enough money for its needs without any other form Taxations, Direct and else  in the link wp.me/p1ZsI2-Yn

As can be seen, this idea offers in golden platter, the one and only way, and the most effective and workable too, in tackling the biggest problem being faced the World over in a simple way making use of Technology transparently monitor and control Money flow into wrong hands. However, jumping into it without its many prerequisites made ready in war footing basis in developing countries like India will be disastrous if not suicidal.  I wrote about this in exhaustive detail long back in my paper wp.me/p1ZsI2-J5 But then, it is it not astonishing rather unfortunate to find the actions of Government / RBI of late, allow Private e-money business houses set up #PaymentBanks; that not only fully defeat the whole purpose of making payment banks and also reverse progress made so far in this area. Finding the Media chose to remain blind, deaf & dumb, may due to obvious reasons, I had been privately communicating with Hon. PM inviting his kind attention before things go out of hand.

Abraham Paul P.   AMIETE (FIETE) AMIE (FIE),

Freelance Consultant. Melbourne. fcomnet@gmail.com  Tweet @pa_paul

Ex. Owner FCOMNET (Futuregroups. India & UAE) / Vice President (TS) SPCNL SIEMENS ICN Germany / Director (Trg, SC & TS) SIEMENS ICN RHQ, Dubai. / G.M & SMT TBG BPL Mobile India. / Telecom Engineering Service (I) DOT India.

 

Posted in Inclusive Growth, Cashless Society, Tax free regimes, Eradication of Corruption and Black Money, Contol on Terrorism - in one go., IT based services, Money as a Commodity, Politics & Governance, Telecom Technology, Universally Goverments Using Their Money as Commodity (#UGOMAC), Universally Goverments Using Their Money as Commodity (UGUTMAC), Universally Governments Operating Money as Commodity | Leave a comment

My Beliefs, my Faith; my Religion.


My Beliefs, my Faith, my Religion

 Please click the caption above to  view the article.

My Beliefs, My Faith; My Religion.

P. Abraham Paul.

Originally Published by me in SOCM publication in 2001.

Short link:- wp.me/p1ZsI2-105

 

 

Posted in Humanity and Religion | Leave a comment

UNIVERSALLY GOVERNMENTS OPERATING MONEY AS COMMODITY (UGOMAC)


UNIVERSALLY GOVERNMENTS OPERATING MONEY AS COMMODITY  (#UGOMAC)

 Author: Abraham Paul. P            abraham-paul-2 

 Thiruvananthapuram, Dated 02 January 2017                     

Short link:  http://wp.me/p1ZsI2-Yn

Introduction. Demonetization is Archaic and hardly can meet the objects  when applied without enough preplanning and preparation. Equally it is undemocratic for Governments to levy huge direct and indirect TAXes on rightfully hard earned Money of ordinary Citizens.

No one can stop advancement of Technology and the disruptive paths it create. Trying to tackle it with half baked and piece meal solutions like Demonetizations are of no help. The way to go is to walk, and then walk all the way with the disruptive Technology turning it an ‘Advantage Government’ and ‘Advantage the People’.

Forewarned is forearmed.

Allowing Private Business houses creating parallel Economy without Government control will lead to disastrous consequences.

What hurts Economy most is not Black Money alone but also large portion Real Money being guzzled up and converted into Virtual form by fast mushrooming e-money businesses creating Black hole of parallel economy, draining Banks, hurting liquidity and eventually disrupting Nation’s economy. It is surprising why Governments world over are being blind on this.

Everyone, right from top,  and strangely supposed to be renowned economists, and the Media 24/7 talk relentlessly mix up disparate issues starting with #Demonetization, then about going #Cashless with #Digital Money to Eradicate Corruption & BlackMoney. They all seem to have one God sent solution; advocating and pushing everyone everywhere to forget about Cash and straitaway right from the midnight of #Demonitisation to move over to #CashlessSociety by using Credit/Debit Cards, e-wallets of enormous Private e-Commerce companies, Banks, TELCOs etc., without creating any fuss about their own money in their hand or in their bank accounts.

But then what they all seem to forget is that Debit cards, Mobile wallets etc,. need to be filled and refilled with Real Money into it to get serviced and from where people will get Real Money for that in the first place.

Matter is simple and can be made workable provided the prerequisites have been addressed and taken care of before hand.

a) A new norm had to be in place. It can happen only if the income and earnings of everyone from its usual sources also paid and received and transfected as Money in Virtual form (e-money) that is commonly acceptable to everyone everywhere.

b) Role of Country’s Federal Bank.

The way to do it is by making Government’s Central Banks (Reserve Bank, in India) create all forms of money in virtual form; (and certainly not in disparate forms by different Private e-Commerce Companies) and make available to all who handle money in the country.

End of the day it simply means that RBI being the sole authority to print and issue real money in currency, shall be made the sole authority to create Money in Virtual form also.

c) e-Wallets. Currently e-Wallets are being created by every e-ecommerce businesses without any regulative measures. There shall be a new norm such as only  Reserve Bank of India shall create, discrete open valued e-Wallets that are tamper proof, fail proof, cannot be duplicated / hacked or disrupted in anyway by any one, each of it indidually discrete. Each of these  e-wallets will have parameters that can be individually programmed and  made  available to every one as its Users; ie. every Citizen including Children, every POS’s in every place where any form of Money transactions happen i.e. All Public Banks and Payment Banks, Institutions, Organizations, Vendors and Merchants, Shops etc,. All  Private e-money companies like Alibaba, Amazon, Paytm and Money Exchange firms etc,.  will function as  individual e-wallets issued by RBI and all e-money transactions will have to be done through that.

 These e-wallets each with discrete number and identification code linked with Aadhar (Indian UUID) of every Citizen and Institutions & Organizations will become part of a Real/Virtual bank account of their choice that can be filled with uniform Virtual ‘Money as Data’ from One paisa to any amount and thus each e-wallet in the Banks and every POSs and in the hands of every user  acquires one Lump some value in the hands of its Creator that is the RBI. The Lump some value of the e-wallets get altered as e-money received and spent from it thus making the denominations of Money in it also Virtual.  

Thus RBI will have an e-Wallet of its own, its value in e-Money is the sum total value of e-Money it has created at any point of time, that is the value of entire e-money in e-Wallets RBI has issued and in circulation ensuring the total sum of the Virtual Money plus Real Money in the Country always remains constant.  

The value of e-Money in the Users e-Wallets get modified every time a request for transaction by any User through their Bank or other Media with authentication by RBI. Statics in RBI related to all e-wallets dynamic and get updated with transaction.

It is  thus RBI should be made the sole Creator, Custodian, Operator, Regulator and Controller of Virtual Money in any form in the Country.

How this help the  Country to  realize, Inclusive growth,  #NoCashCurrency Society, Eradication of Corruption/Black Money, Better restraint on Terrorism and also a TAX free Regime.

1. Inclusive growth:

Please see a paper published by me many years back on “Exclusively Banked Universal Money Management using Phones” containing comprehensive and consolidated ideas and proposals to realize Financial Inclusion and Microfinance support to people especially in the lower social-economic strata in the link wp.me/p1ZsI2-4g

Slide7

 A Comprehensive and consolidated  paper by me describes in detail how Money through Mobile (mTm) envisage wide range of products and service to cater for all sorts of payments in every Points of Sales & Services with any amount of money in digital form any time for anything and everything, any where and everywhere, also for exchange of physical money to e-money and vice versa if required. 

Further, Money through Mobile (mTm) can enable smooth changeover to Cashless Society using UUID for all purposes and to roll out various schemes such as DBT etc., with exclusive Virtual Banks as Payment Gateways,  Universal, simple and easy to use applications, 24/7 service from anywhere any time, any amount and Digital Connectivity in remote areas with GPS via Satellites. that can also help to progressively phase out of  PDS with DBT.  

2. Power and Perils of Money going Virtual.

Please see a paper published by me on “Power and Perils of Money going Virtual” in the link wp.me/p1ZsI2-Ku in which I had explained in detail the urgent need to bring in regulation to prevent fast mushrooming Private e-money management companies  guzzling Real Money draining banks and creating a black hole of parallel economy of #VirtualMoney hurting Banking industry and Liquidity that will eventually disrupt Country’s economy. 

As e-money has to be in Virtual form to realize the said objects, the way out is that the  Banking Industry itself handle it so that liquidity is not lost and Banks are drained of Money. Please see in the following schematic the money cycle both Real and Virtual in a lay man’s perspective, how the Real and Virtual Money Cycle looks like will be with RBI becoming the Creator, Custodian, Operator and Controller of Money in its Real and Virtual forms.    

Money Cycle, Real & Virtual

Please see a presentation on this  in the link: wp.me/p1ZsI2-M6

In order to make it fully Cashless Society and also to regulate and harness huge amount of Virtual money involved, the way out is that RBI shall be the sole Creator, Custodian, Operator, Regulator and Controller of all sorts of ‘Money in Virtual form’ and create open e-Wallets and make it available to all Citizens in India, like Aadhar. 

Reserve bank of India shall generate Money in Virtual form also in addition to printing Currency so that everyone get all sort of income and earning in their e-Wallet in the form of Virtual Money through Banks and thereby the liquidity is maintained.  This will also enable RBI to create even Billions worth of e-money in its e-Wallet and distribute it to e-Wallets of Banks within few hours without the sort of fuss seen now. 

As RBI remain the custodian of e-money, every e-money transaction in the e-wallets everywhere can happen only  with authentication of RBI like in the case of NEFT & RTGS. Hence,  RBI will have full statistics of the e-money movements in Virtual form anywhere and everywhere.    

 3. How can this lead to TAX less REGIME.

 The idea of  GOVERNMENT OPERATING MONEY AS COMMODITY  (GOMAC)

This is an idea first of its kind ever by further evolving from idea of Reserve BANK being the sole Creator, Custodian, Operator Regulator and Controller of Money in Real and Virtual form and every money transaction happens with authentication of RBI on a real time basis, it is possible for the Government to charge a levy on the amount  of Money being transacted based on any number of pre-defined parameters.  The parameters include rate of levy that can be varied at the click of a Computer button in the RBI Server. 

As real information of Money Movement happening any where in the Country and its Statistics also will be stored in the RBI Server, Government can use it for various other purposes also. Interestingly it can find International application. The above arrangement of Real and Virtual Money cycle can enable  Governments Universally across the World use their Money as a commodity (an idea first of its kind ever) to generate much needed enough income for its needs by levying a small percent, say hypothetically at 1% on every money transactions,  both Virtual and Real.

For example:- There are above Billion Mobile Phones in India.  Say a modest  amount of Rs.15000 transacted by every phone on an average per month makes it Rs.15 Trillion per month. Money is dynamic and get re-transacted about 20 times a month making it to Rs. 300 Trillion ie. Rs. 3600 Trillion annually.  1% of it is Rs. 36 Trillion which is about twice the total outlay of India’s this FY’s Central budget.

This is just about with the income from Money through Mobile alone, and it will be  hundreds of Trillion with 1% levy on all other forms of Money transactions, such as for Goods & Services, Real Estates etc,. Basically there will be no other form of Taxes, people have to pay, Direct, GST or else, thus making India a Tax free regime. Concepts are important, nuts and bolts can be added by experts aplenty  and also will have many fathers as things started moving.

UNIVERSALLY GOVERNMENTS OPERATING MONEY AS COMMODITY  (UGOMAC)

Interestingly the concept can find relevance in Universal application across the world and that is why I ventured to write on this.

(By the way my paper Money through Mobile mTm I published 15 years back . It is in visualizing its disruptive potential I did not venture to do it then and was after Government & RBI to regulate and harness it turning as advantage Government and People as a whole.   But then many Private e-money Companies went ahead with scant respect for the fundamental issue, its disruptive potential,  exactly why I did not dared to do it. It appears Government has not yet understood it so far, though NPCI had done some work in creating Uniform Payment Interface and RBI allowed Payment Banks. It is surprising to note that of late how Government allow many Private e-money Companies are given Payment Bank Status which defeat the basic purpose.)

The concept find the possibility of its adaption universally across the word, for two reasons, to get out of the disruptive path and to save ordinary Citizen from getting taxed by Governments on their rightfully hard earned income. It can be straight away adapted where the prerequisites as detailed in my paper wp.me/p1ZsI2-XG ideally in countries like  UAE. Jumping into it in with half baked solution piece meal basis  without the prerequisites made ready in a war footing basis will be disastrous if not suicidal.

4. How to  ensure move  fully Cashless transaction?

Naturally a question arise how will Government make everyone use ever payment in Cashless payment route.  This can be realized by Government first of all bring in a rule  that  every place Money transactions happen shall be treated  as Point of Sales / Point of Service and Money transacted in both Physical and Virtual form shall be done only through that. Now if anyone transact Peer to Peer or Peer to Business or B to B   in Physical Money other than through POS to avoid levy on its transaction, the money so transacted has as to ultimately reach a POS for getting converted or for  Goods and Service and will come under levy payment in the hands of the receiver.  

This is ensured as the POS can be made to accept Money only in Virtual form and if money is taken in physical form it will attract levy is of the hand of the receivers when they try spend or try to convert it into virtual money.  

However, there shall be facility to accept Money in physical form and exchange it to Virtual form and vice versa to complete the transaction inviting levy twice. This will work as incentive to stick  to Cashless mode.

4.1. Money in Physical and Virtual form can co-exist for some more time. 

If someone want to use Physical Money at a POS,  it has to be exchanged into Virtual Money first. Facility shall be always available to exchange Physical Money into Virtual Money and vice versa, always inviting levy in each transaction;  thus Virtual Money transactions become cheaper and this incentive help enhance Cashless mode. Even the Black Money hoarded will have to go through a POS some where some time paying levy and get into the statistics of Government.

4.2. The base becomes broader like never before. 

Thus as everyone everywhere pay the levy on money transactions both in its Physical and Virtual form; differentially according to predefined parameters; the poor spend less and pay less; the rich the other way around; the levy-able base is widened to entire population and revenue generated will be too huge to take care the needs of Central and State Governments together with no other Taxes, Direct or else, GST etc,.  As the levy rates are program controlled it can be varied as decided by Government from time to time according various parameters such as user based, location based, status based, special needs based etc. 

4.3. Less dependency on FDI.

Once Governments developing countries are able to generate enough income to cater for all its needs, dependency on FDIs diminishes considerably. 

4.4.  Easy and quick to apply changes in emergent situations.

 Another important aspect is that the income generated can be need based and can be varied as needed from time to time in case of national calamities, poor or failure of monsoon, famine, etc., and revert back at will just with the press of a button.

5. Eradication of Corruption and Black Money and Control on Terrorism activities.

As RBI being the creator and custodian of e-money entire statistics will be available and can be monitored to prevent Corruption and Black money. Same way flow of Money into wrong hands can be prevented the one and the only sure way to restrict terrorist activities in the Country. 

6. Pre-requisites.

India should have its own INTERNET CLOUD and INTERNET EXPLORER Servers. 

6.1. India INTERNET CLOUD and indigenous Servers.

 Last but not the least, in order to get all these done it is critical to have an INDIA INTERNET CLOUD and own Explorer servers sitting within the country are a must lest the entire economy can grind to halt if solely depend on Explorers abroad happened to be hacked or switched off due to any reason beyond our control. It is also advisable to roll out the project less dependant on INTERNET. My paper “Money through Mobile (mTm) envisage realization the project using Phones both Mobile as well as well as Fixed & Public Kiosks. wp.me/p1ZsI2-4g

6.2. Digital connectivity every where. Extending digital connectivity needed for this every where laying  Optical cables will take time. The way to go is to implement these in places where digital connectivity available and remote areas are connected to Central Servers with GPS over Satellite links to provide access Central server from rural Post Offices, Pancyat & Government offices and Franchisees through Kiosks.

Hurrying to jump into #DigitalIndia, #Cashless etc.,  done without the prerequisites such as above  will be like putting the Cart before the Horse. Forewarned is Forearmed.

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Please see my blogs on Digital India: Views, opinions, and new proposals on various Technology & Social and Community affairs. http://wp.me/p1ZsI2-J5 

____________________________________

Author: Abraham Paul P. FIE, FIETE.

Free lance Telecom and IT Consultant, Ex Owner FCOMNET India & UAE / Vice President Technical Sales, SPCNL SIEMENS ICN Germany / Director Trg. SC & TS SIEMENS ICN RHQ UAE / G. M & SMT TBG BPL Mobile India / Telecom Engineering Service, (I) DOT India. Tweet @pa_paul

                   ————————————————-

Posted in Inclusive Growth, Cashless Society, Tax free regimes, Eradication of Corruption and Black Money, Contol on Terrorism - in one go., Money as a Commodity, Social and Community affairs | Tagged | 3 Comments

Inclusive Growth, Cashless & Tax-free Society, Corruption & Black Money eradication, Terrorism Control – in one go.


Inclusive Growth, Cashless & Tax-free Society, Corruption & Black Money eradication, Terrorism Control – in one go.

Author: Abraham Paul. P   Dated 02 December 2016               …

Source: Inclusive Growth, Cashless & Tax-free Society, Corruption & Black Money eradication, Terrorism Control – in one go.

Posted in IT based services, Mobile through Mobile (mTm), Money as a Commodity, Politics & Governance, Social and Community affairs | Leave a comment

Inclusive Growth, Cashless & Tax-free Society, Corruption & Black Money eradication, Terrorism Control – in one go.


Inclusive Growth, Cashless Society & Tax-free Regime, Eradication of Corruption & Black Money,  Control on Terrorism  – in one go.

   Author: Abraham Paul. P            abraham-paul-2 

 Thiruvananthapuram, Dated 02 December 2016                     

Short link:  http://wp.me/p1ZsI2-XG

Introduction. Demonetization is Archaic and what hurts Economy most is not Black Money but large portion Money being guzzled up and converted into its virtual form by fast mushrooming e-money businesses creating parallel economy of a black hole of Virtual Economy draining Banks hurting liquidity and eventually disrupting Nation’s economy. 

For sure, no one can stop advancement of Technology and the disruptive paths it create. However, there has to be a way to tackle it and half baked solutions like Demonetisatin are of no help. The way to go is to walk, and walk the full way with disruptive technology  coverting it an advantage. Forewarned is forearmed.

Everyone, right from top,  and strangely supposed to be renowned economists, and the Media 24/7 talk relentlessly mixing up disparate issues viz., #Demonetization, #BlackMoney and lately to forget Cash by moving over to #CashlessSociety by everyone using Credit/Debit Cards, e-wallets of Private e-Commerce companies, Mobile Wallets etc., without creating fuss about Cash, be it theirs or in their bank accounts. 

But then what they all seem to forget is that Debit cards, Mobile wallets etc,. need to be filled and refilled with Money into it in the first place to get service, and from where people will get Money for that.  

Simple, it can happen only if the income and earnings of everyone also paid and received as Money in Virtual form (e-money) through their usual sources.  

Now, in order to make it happen who should   create Money in Virtual form? Government’s Central Banks (Reserve Bank, in India) certainly not any Private e-Commerce Compnies. End of the day it simply means that in addition to printing and releasing currency notes, RBI shall also create Money in Virtual form and also     create discrete open valued e-Wallets, tamper proof, fail proof, cannot be duplicated, hacked or disrupted in anyway by any one; each of it with parameters that can be programmed and altered individually and made available to every one as its Users; ie. every Citizen, every POS’s in every place where any form of Money transactions happen ie. Banks, Credit Card Companies, Money Exchangers, Institutions, Organizations, Vendors and Merchants, Shops and more importantly all Private & Public e-money managing Companies like Amazon, Alibaba, PayTm etc,.  

 These e-wallets each with discrete number and identification code linked with Aadhar (Indian UUID) of every Citizen will become part of a Real/Virtual bank account of their choice that can be filled Virtual Money as Data from One paisa to any amount and acquires one lump some value in the hands of the Creator, the Banks and every POSs and in the hands of every user. The lump some value of the e-wallets get altered as  e-money received and spent from it thus making the denominations of Money also Virtual.  

  1. Thus RBI will have an e-Wallet, its value in e-Money is the sum total value of e-Money at any point of time is the value of entire  e-Wallets RBI has issued and in circulation. Thus the total sum of the Virtual Money plus Real Money in the Country always remains constant.  It is  thus RBI is made the sole Creator, Custodian, Operator and Controller of Virtual Mon
  2.  ey in any form in the Country. The value of e-Money in the Users e-Wallets get modified every time a request for transaction by any User through their Bank or other Media. 

1. Inclusive growth:

Please see a paper published by me many years back on “Exclusively Banked Universal Money Management using Phones” containing comprehensive and consolidated ideas and proposals to realize Financial Inclusion and Microfinance support to people especially in the lower social-economic strata in the link wp.me/p1ZsI2-4g

Slide7

 The above paper describes in detail how Money through Mobile (mTm) envisage wide range of products and service to cater for all sorts of payments in every Points of Sales & Services with money in digital form for everything, anywhere and everywhere, exchange of physical money to e-money and vice versa. 

Further, Money through Mobile (mTm) can enable smooth changeover to Cashless Society using UUID for all purposes and to roll out various schemes such as DBT etc., with exclusive Virtual Banks as Payment Gateways,  Universal, simple and easy to use applications, 24/7 service from anywhere any time, any amount and Digital Connectivity in remote areas with GPS via Satellites. 

2. Power and Perils of Money going Virtual.

Please see a paper published by me on “Power and Perils of Money going Virtual” in the link wp.me/p1ZsI2-Ku in which I had explained in detail the urgent need to bring in regulation to prevent fast mushrooming Private e-money management companies guzzling liquid Money draining banks and create parallel economy of #VirtualMoney that will eventually disrupt Country’s economy. 

As e-money has to be in virtual form, the way out is for the Banking Industry itself handle it so that liquidity is not lost. Please see in the following schematic a lay man’s idea how the Real and Virtual Money Cycle looks like with RBI becoming the Creator, Custodian, Operator and Controller of Money in its Real and Virtual forms.    

Money Cycle, Real & Virtual

As can be seen in my paper, to move over to Cashless society by using Debit cards, Mobile wallets etc., as of now people need Physical Money in hand or in Bank account in the first place to charge and recharge Debit cards, Mobile wallets etc,. 

A presentation on this is in the link: wp.me/p1ZsI2-M6

In order to make it fully Cashless and also to regulate and harness huge amount of Virtual money involved, the way out is that RBI shall be the sole Creator, Custodian, Controller and Operator of all sorts of ‘Money in Virtual form’ and create open e-Wallets and make it available to all Citizens in India, like Aadhar. 

Reserve bank of India shall generate Money in Virtual form instead of printing Currency so that everyone get all sort of income and earning in their e-Wallet in the form of Virtual Money through Banks and thereby the liquidity is maintained.  This will also enable RBI to create even Billions worth of e-money in its e-Wallet and distribute it to e-Wallets of Banks within few hours without the sort of fuss seen now. 

As RBI remain the custodian of e-money, every e-money transaction in the e-wallets everywhere can happen only  with authentication of RBI like in the case of NEFT & RTGS. Hence,  RBI will have full statistics of the e-money movements in Virtual form anywhere and everywhere.    

 3. How to make India Tax free regime. 

With adoption of the above arrangement of Real and Virtual Money cycle,  Governments Universally across the World can use Money as a commodity (an idea first of its kind ever) to generate much needed enough income for its needs by levying a small percent, say hypothetically at 1% on every money transactions,  both Virtual and Real.

For example:- There are above Billion Mobile Phones in India.  Say a modest  amount of Rs.15000 transacted by every phone on an average per month makes it Rs.15 Trillion per month. Money is dynamic and get re-transacted about 20 times a month making it to Rs. 300 Trillion ie. Rs. 3600 Trillion annually.  1% of it is Rs. 36 Trillion which is about twice the total outlay of India’s this FY’s Central budget.

This is just about with the income from Money through Mobile alone, and it will be  hundreds of Trillion with 1% levy on all other forms of Money transactions, such as for Goods & Services, Real Estates etc,. Basically there will be no other form of Taxes, people have to pay,  Direct, GST or else, thus making India a Tax free regime. Concepts are important, nut and bolts can be added by experts.

4. The efforts involved to move over to fully Cashless Society?

Naturally a question arise how will Government make everyone use ever payment in Cashless payment route.  This can be realized by Government make it a rule ring that in every place Money transactions happen shall be treated as Point of Sales / Point of Service and Money transacted in both Physical and Virtual form shall be done only through that. Now if anyone transact Peer to Peer or Peer to Business or B to B   in Physical Money other than through POS to avoid levy on its transaction, it has to ultimate reach a POS for getting Goods and Service and will come under levy payment in the hands of the receiver.  This is ensured as the POS can be made to accept Money only in Virtual form.

However there shall be facility to accept Money in physical form and exchange it to Virtual form and vice versa to complete the transaction inviting levy twice. This will work as incentive to stick  to Cashless mode.

4.1. Money in Physical and Virtual form can co-exist for some more time. 

If someone want to use Physical Money at a POS,  it has to be exchanged into Virtual Money first. Facility shall be always available to exchange Physical Money into Virtual Money and vice versa, always inviting levy in each transaction;  thus Virtual Money transactions become cheaper and this incentive help enhance Cashless mode. Even the Black Money hoarded will have to go through a POS some where some time paying levy and get into the statistics of Government.

4.2. The base becomes broader like never before. 

Thus as everyone everywhere, except those exempted, pay the levy on every money transactions both in its Physical and Virtual form; the, one who spend less pay less; the rich the other way around; the base is widened to entire population and revenue generated will be too huge to take care the needs of Central and State Governments together with no other Taxes, Direct or else, GST etc,.  For common man it will be less what currently shell out in Direct/indirect Taxes.

As the levy rates are program controlled it can be varied as decided by Government from time to time according various parameters such as user based, location based, status based, special needs based etc. 

4.3. Less dependency on FDI.

Once Governments developing countries are able to generate enough income to cater for all its needs, dependency on FDIs diminishes considerably. 

4.4.  Easy and quick to apply changes in emergent situations.

 Another important aspect is that the income generated can be need based and can be varied as needed from time to time in case of national calamities, poor or failure of monsoon, famine, etc., and revert back at will just with the press of a button.  in emergent

5. Eradication of Corruption and Black Money and Control on Terrorism activities.

As RBI being the creator and custodian of e-money entire statistics will be available and can be monitored to prevent Corruption and Black money. Same way flow of Money into wrong hands can be prevented the one and the only sure way to restrict terrorist activities in the Country. 

6. Pre-requisites.

India should have its own INTERNET CLOUD and INTERNET EXPLORER Servers. 

6.1. India INTERNET CLOUD and indigenous Servers.

 Last but not the least, in order to get all these done it is critical to have an INDIA INTERNET CLOUD and own Explorer servers sitting within the country are a must lest the entire economy can grind to halt if solely depend on Explorers abroad happened to be hacked or switched off due to any reason beyond our control.

6.2. Digital connectivity every where. Extending digital connectivity needed for this every where laying  Optical cables will take time. The way to go is to implement these in places where digital connectivity available and remote areas are connected to Central Servers with GPS over Satellite links.

Hurrying to get these done without the perquisites such as above and others will be like putting the Cart before the Horse.

Please see my blogs on Digital India: Views, opinions, and new proposals on various Technology & Social and Community affairs. http://wp.me/p1ZsI2-J5 

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Author: Abraham Paul P.

Free lance Telecom and IT Consultant, Ex Owner FCOMNET India & UAE / Vice President Technical Sales, SPCNL SIEMENS ICN Germany / Director Trg. SC & TS SIEMENS ICN RHQ UAE / G. M & SMT TBG BPL Mobile India / Telecom Engineering Service, (I) DOT India. Tweet @pa_paul

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Posted in Inclusive Growth, Cashless Society, Tax free regimes, Eradication of Corruption and Black Money, Contol on Terrorism - in one go., IT based services, Mobile through Mobile (mTm), Personal messages and other | 1 Comment

POI disputes in Indian Telecom


abraham-paul_photoHow to resolve POI disputes in Indian Telecom.

Short link: http://wp.me/p1ZsI2-VA

Abraham Paul P.    Dated 28 September, 2016.

Of late, there have been bitter disputes between incumbent Mobile Telecom Providers in India versus a new entrant. As someone in the field for over 60 years doing Planning & Implementation of right from Magneto to most modern Digital systems I would like to mention few points for the kind notice of Government, Regulators, Telecom Service Providers, its federation heads, Internet Service Providers, the Inter-country Cable & Satellite operators and the  Media.

Please see link below for this article in full with explanatory diagrams:

Microsoft’s or spoil disputers_r_-1

  1. In a saturated topography with presence of far too many Telecom Service Providers in India,  demand for new Telephone connections (both Fixed & Mobile) as of now is far  less than ready to supply; except perhaps in green fields predominantly in some rural and many remote areas.
  2. According to fundamentals of Telephony, in a topography setup as mentioned above, the volume of Telephone connections as well as the volume and pattern of Telephone Call Traffic (originating & terminating) continues to remain more or less same with one or many new entrants come into operation even if they are able to poach considerably large volume of subscribers from incumbents; with advanced features, products, attractive plans and cut throat Tariff-ing.
  3. However, when subscribers of an existing operator moves to a new operator in a service area the intra exchange traffic become less and roamoing traffic increases to that extent needing more interconnects to the roaming hub. Therefore, exinsting operators are compelled to add more junction interface equipment and junction circuits to the Roaming hub.
  4. The question arise is who will expand the Roaming hub with additional junction equipment and the switching path and share cost of additional circuits making the inter connectivity issue significant, as to who owns the Roaming hub, may be a consortium of operators. It does fit into apprprate business cas as exinsting have incurr cost fot added connectivity while suffer loss of revenure due to lessened  volume of subcribers. Government /TRAI need to look up at these issues as who will bell the cat. Surprisingly neither the DOT, the TRAI, nor the warring TELCOS / COAI, the Technical experts and the ever vociferant Media guys thought it relevant though obviously enough things cannot go on like this, anymore.

5. Previously DOT owned the Transit & G/W systems. The question is who will bring in these in the PLMN space?

Three options are:

1. DOT to get it done by BSNL corporation. It can be a good business diversification to earn additional revenue from interconnect charges.

The interconnect interfaces and through connects shall be IP based to provide all types of junction circuits Voice, Data and Multimedia of contemporary and future networks.

2. A Consortium of TSPs to set it up.

3. Give fresh license to existing or new service provider exclusively for this purpose.

4. Last but not the least is the technology part.

Please see my compilation on a layman idea about “POTs to 4G and beyond” in the link wp.me/p1ZsI2-5Y

The type and technology of the Systems, Network and mode of Transport unlike the VOICE call Transit & G/W systems are much different and ever changing in wireless Telephone arena and that too need a combination of all till the entire Telephony comprising PSTN and PSPDN become IP based. We are at the threshold of VoLTE enabled LTE solutions for handle Voice and all sorts of Data and Multimedia communication needs.

However, these can happen practically in the field only with commensurate eco system and improvement of knowledge level of common mass that constitute a greater part of the consumers as of today. Even so, a workable version of Transit exchanges and Gateways capable of handling all these shall be in place. One way is to resolve this is to have Interface equipment at POI in every Local exchange shall be capable converting and switching all modes of call element into a common protocol of PSPDN and switch it through Transit and Gateways.  Due to above reasons, every local system shall only be connected to nearby Transit Systems by default, not with other Local exchanges even within the City or Service area.

  1. Revenue generation by the transit & Gateway system operators. There are billing arrangement in the Transit and Gateway systems and transit calls of different modes are appropriately measured, billed and charged and apportioned according to usage by various TSPs/ ISPs etc.  As mentioned earlier, due to technical and commercial reasons and to avoid duplicate charging at different transit points every local system shall only be connected to nearby Transit Systems by default, not with other Local exchanges even within the City or Service area.
  2. Responsibility to provide enough Interface equipment within the system and at the POIs in the Roaming Gateways according to traffic rest with the Gateway system provider. It shall be also their responsibility to upgrade their changes happening in the Technology including possible transit methods using Cloud Computing.

Whatever be the reasons and arguments for and against delays and disparities in decision makings about Service area, License, Spectrum, Interconnectivity and Technology, there is an urgent need to look at the basic fundamentals of Telephony. It is only surmising how about one billion consumers a Wireless Telephony business India could go on without ensuring appropriate and adequate topography.

It is astounding to watch big arguments about “Free basics”, “OTT Players” “Net Neutrality” All such questions arise as the stakeholders involved do not care to look in the basic fundamentals of Telephony Viz: Does Private industries like Google etc., foraying into Telephony business as OTT and else come under the definitions of   “Public Switched Telephone Network (PSTN)” that include PLMN and PSPDN?

It leads to a most relevant question whether World Wide Web (www) that interconnects millions of private servers (that are like Private Branch Exchanges) that do not adhere any norms and rules of full time availability and traffic parameters come under the foray of PSTN.

May be I am the only person in the World ask this question, but unless it is given serious consideration, the legacy Telecom Industry will end up in a grinding halt. I know it meaningless to point fingers at things that are in vogue unless I have better ideas and ways to resolve it. My view is that the above described problems creped in disrupting the rightful area of PSTN, inadvertently or else, can be resolved by adopting CLOUD computing technology segregating and safeguarding “INTERNET’ services in PSTN from the World Wide Web.  The future will be CLOUDS and CLOUD computing and with that it is possible to segregate PSTN which includes PSPDN and INTERNET that inter connect it regionally as well as across the world can be protected from the World Wide Web access to it will be according rules and regulation of PSTN.  Please see the picture below explaining the idea contained in my proposal of segregating and protecting INTERNET for PSTN from World Wide Web.

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Author: Abraham Paul. P. Owner  FCOMNET.  Ex V.P Technical Sales, SPCNL / Director TRG, TS & SC SIEMENS ICN / G.M & SMT Telecom Business Group, BPL Mobile India / TES (I) DOT India.

Please see my other blogs on related topics:

  1. Impact of transition from Voice to Data & Multimedia http://wp.me/p1ZsI2-23

2. Make Telecom Systems, network, Phones, product and services for the common man. http://wp.me/p1ZsI2-9i

3. Digital India: Views, opinions, and new proposals on various Technology & Social and Community affairs. http://wp.me/p1ZsI2-J5

4. Telecom Industrialists need caution on broad band network ideas that do not fit in the future. http://wp.me/p1ZsI2-4s

5. Net Neutrality without hurting Telcos and End users. http://wp.me/p1ZsI2-ES

6. Exclusively banked Universal Money management using phones.   http://wp.me/p1ZsI2-4g

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Posted in IT based services, Telecom Networking, Telecom Technology | Leave a comment

abraham-paul-2Consolidated list of some of

P. Abraham Paul’s Articles.

Consolidated list of some of P. Abraham Paul’s Articles on Information Communication Technology and Social & Community affairs.   Dated 26 July 2016

Short link: http://wp.me/p1ZsI2-TS

Press Control key and click on caption below to  open the PDF document of the list and articles.

Articles and Blogs published by P. A Paul FIE, FIETE.

The views and opinions in the articles are strictly personal and not intended to offend any Individual, Organization, Institutions Community or Religion. I do not disagree with anyone who disagree my views and opinions.

P. Abraham Paul (P.A Paul).

Ex: Owner Future Communication Network (FCOMNET) UAE & India / Vice President Technical Sales,  SPCNL  SIEMENS ICN / Director TRG, SC & TS SIEMENS ICN RHQ Dubai / General Manager & SMT TBG, BPL Mobile, India / TES (I) DOT India.

E-mail: papaul@hotmail.com      Twitter.com/pa_paul

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