How to save Nation’s Economy from impending Disruption?


How to save Nation’s Economy fruom impending disruption.

http://wp.me/p1ZsI2-11jabraham-paul-2

For whom so ever interested.

AUTHOR: P Abraham Paul.   Dated June 5 2017j 

Money cycle in mTm

I wrote “Exclusively Banked Universal Money Management using Phones (acronym ‘Money through Mobile’ (mTm) an Intelligent Network based technology (Unstructured Supplementary Service DATA) in a comprehensive paper covering almost all aspects related to it as early as 1996 when no one has heard of Mobile Payments.
I got it tested out the many features, products & services as detailed in my paper in the link: wp.me/p1ZsI2-4g
(Incidentally I happened to be there in rolling out one of the first GSM systems in India and to implement IN based Prepaid service in GSM later in 1995)
Slide7
Visualising the need of having a uniform structure, applications & methods for it to succeed, and also needed Government’s role in its regulatory requirements to overcome its disruptive potentials on nation’s economy, I did not venture to do it myself then and I had been writing to Government , RBI, Planning Commission on this and many other areas such as the need of UUID, Exclusive Government owned Communication systems, networks and transport and the Connectivity issues, availability and readiness of required minimum Eco system and so on and so forth; for it to take off. (Available in  papaulsblogs in wordpress.com in the link wp.me/p1ZsI2-dh )
India INTERNETcloud
The main object being Inclusive Growth through Financial Inclusion, in a country like India with its most population residing in Rural areas, it is going to take considerable effort, time and money. But then there is nothing known as ‘Perfect’ in planning, wait for it and nothing happens.
The way to go is to use best of the Contemporary and move on always with an eye on the future, beginning from Cities, Towns and in places where required eco system readily available and then move on to other areas.
This is what many Private e-business Companies do, with least concern of its main object of realising Inclusive growth by Financial Inclusion is being achieved wholesome or not.
But then Government stepped in with its Financial Inclusion idea PMJDY with good intentions but its success can’t be ensured through regular Banks that are mostly White Elephants; never be able to cater to the needs of huge population of poor and most among them still below poverty line.
Universal mTm- System intgrated with Exclusive mTm- Bank
In my paper Exclusively Banked Universal Money Management for Inclusive Growth  I had suggested the following solutions:
1. Create Payment Banks that include Post Offices network, and its franchisees closer to people in every Panchayat, that can create large number of jobs.
2. Provide Access and connectivity to the zonal mTm system via GPS from Remote rural areas.
3. Create and use UUID for KYC and personal identification for all sorts of money transactions including DBT etc without the need of Phones.
4. Uniform mode of Money transaction and Systems & Procedures at every POS.
Things started happening, thanks to Sri. Nandan Nilekani for creating Aadhar, and thanks to RBI / NPCI for bringing in UPI and creation of Consortium of Banks.
But due to the absence of regulatory part that was critical,  many Private Banks and Private e-Money businesses came into the scene exploiting the policy vacuum and started guzzling in and pocketing huge amount of ‘Real’ and Legal money (physical & in instruments) and giving out their own self created ‘money in Virtual form’ (Money as Data) that has no legal status, draining Banks & Liquidity, taking advantage of the lapse in regulative mechanism in place.
It is only common sense to visualise that entire Money in circulation in Banks and being newly released by RBI will vanish in no time from the Country leaving a black hole of parallel economy of illegal Money in virtual form, owned by none.
 Slide05

Seeing that Government and RBI appeared clueless of what was happening, I wrote to RBI and Government and to different Media,  about the need of their urgent intervention, as can be seen in my blog site papaulsblog

In a presentation I gave in Institution of Engineers two years back on ‘Power and Perils of Money going Virtual’ and the urgent need to regulate it. wp.me/p1ZsI2-Ku  I had explained how Money going Virtual is powerful but also could be highly disruptive in many ways unless it is properly regulated and harnessed.

Converting the disruptive potential as advantage is the way to go, to quicken Inclusive Growth and more, that can be realised by ensuring and retaining Money in its virtual form also legal tender.

This can be done only by making every Government, their Federal Bank (RBI inIndia) the sole Creator, Custodian, Operator, Regulator and Controller of all forms of Money that includes Money in Virtual form also and banning all others as counterfeit and illegal.
The above said in no way mean Private e-money handling businesses to kept out of handling Money in virtual form in carrying on their business.
It simply means that it’s origination shall be from Government’s Central Banks that then obtained by others as its users just the same way Real Money in Currency are handled by its users that include private e-money businesses.
 It is therefore, I had been frequently urging RBI to create exclusive Payment Banks under the Control of Government including Post Offices.
Thanks to Sri Raghuram Rajan for approving payment banks (too many though) that included the POs also as his parting gift.  Those payment banks are supposed to work under a regulatory mechanism keeping the Money Chain, both in its ‘Real & Virtual’ forms and the Liquidity safe within the Government approved Banks that includes the consortium of Banks formed at the initiative if NPCI,  but with no authority to create any form of Virtual Money and e-wallets of its own or to use any of these created by fast mushrooming Private e-money companies.
Unfortunately current Government in great hurry to move over to #Digitalisation, was virtually probably unknowingly leading the Country’s Economy to disruption by allowing and also encouraging and brazenly pushing people to do Payments using fast mushrooming Private e-money Businesses, Debit Cards etc.,  defeating the primary object.
This also increased hardship caused by Demonitisation as these Companies sucked in whatever Real Money and liquidity left out after #Demonitisation.
It is strange that Government  continues to allow many more private banks and e-commerce companies to become self established Payment Banks, unable to discriminate between the purpose of PAYMENT BANKS from  PAYMENT GATEWAYS / PAYMENT BROKER SYSTEMS that defeats the basic purpose of the creation of Payment Banks by Government in the first instance.
It is highlighting these dangers I have been suggesting simple and workable solutions to overcome those, writing to everyone in the Government, RBI, Print & Visual Media as to what need be done, not only to escape and overcome the danger of nation’s economy getting badly disrupted but also about how to convert the disruptive potential of Money Going Virtual it as Advantage Government & Advantage People, Legal Banking Industry in my blog “Inclusive Growth, #DigitalMoney anywhere any time, Eradication of Corrupion/Black Money, and better restraint on terrorism – all in one go.
Please see my blog in the link wp.me/p1ZsI2-XG  how every transaction of Money in the country, Virtual to virtual, Virtual to Real and vice versa can happen only through RBI, ensuring entire statistics available for management and control of Money both Real & Virtual and its movements. and Liquidity position.
As every transaction becoming transparent, it will help to eradicate Corruption and Black Money and prevent Money flowing into wrong hands and for wrong purposes, the one and only sure shot way to restrain its growth.

Money Cycle, Real & Virtual

TAX free INDIA.

Harnessing the Power of  Money gone Virtual everywhere and for everything,  give opportunity for Governments to generate enough revenue for its needs by levying a small percentage on every amount of money being transacted;  a bye product and BONUS that can make India a TAX FREE Nation, by discarding all current forms of Taxations; Direct and else, GST etc. that are archaic in the Technology world.

I am sure that Government will be able to enhance its revenue at least by ten fold by moving over and Operate Money as Commodity as suggested herein without burdening people with other forms of duties and Taxes, Diect, GST or else.

The system’s and its functioning being envisaged as parameter driven, all sorts of flexibilities could be built in to enable differentiated charging of levies  based on Users ID, place and nature of use, Country’s economic situation time to time such as severe Floods/Draught major natural calamities etc.

New technologies that handy for RBI look for are: 1) Crypto Currency to create ‘Money as Data’ 2) BITCOIN concept to create open its open ended e-Wallets, 3) advanced Block Chain Technology for its distribution and operation etc., can be developed and used as tools that India is fully capable of doing.

The Object and Concepts to attain it are important; there are aplenty out there to add ‘nuts and bolts’ and many fathers later to own it, when done.

Government should pursue and insist Indian IT companies to focus and concentrate more on programs helping Country’s progress other than creating NPAs and scoot.

Universal adaptation of the concepts. “Universally Governments Operate Money as Commodity” #UGOMAC

The Concept embedded can be adopted Universally in Countries across the World  as explained in my paper ‘Universally Governments Operate Money as a Commodity’ #UGOMAC in the link wp.me/p1ZsI2-Yn

Further the system proposed envisage handling money transaction in any international currency and pave the path towards uniform practice of open Money management across the World.

One World, One Economy; the order of a righteous World.

Universally Governments Operate Money as Commodity can become handy to establish the concept of One World, One Economy and realisation of Universal Basic Income UBI with a Universal fund autonomously raised and contributed by every Government with #UGOMAC.
High time for the Governments World over to move over
to #UGOMAC  “Universally Governments Operate Money as Commodity” that can eventually realize ‘One World One Economy’ and ‘Equitable distribution of Resources’ to enable ‘Eradication of Poverty’ and impoved ‘Standard of Living’ all across the world with assured ‘Universal Basic Income’ by creating a common fund contributed by all Nations.

Also it is the one and only way to effectively restrain proliferation of Terrorism of sorts by controlling money going into wrong hands for wrong purposes and to put a stop to Money in Politics which has become curse and downfall Democratic well being of Governments world over. Please see my blog: wp.me/p1ZsI2-11j

Jumping into Digital India before its prerequisites in place is disastrous.

Everyone in Government and in its Party these days vociferous about going Digital, in place and else and knowing anything about it or else. wp.me/p1ZsI2-XG

Digital connectivity everywhere being the crux of the issue, Jumping into #DigitalIndia without its prerequisites made ready in a war footing basis will be disastrous if not suicidal. Therefore, the whole thing shall be approached in well planned manner phase by phase implementing it in Cities, Towns and its suburbs where eco system needed is readily available and moving on to other areas as and when it is made ready, as explained in my blog.  wp.me/p1ZsI2-J5

NO ROCKET SCIENCE;
MERE COMMON SENSE,
SANS JARGONS.
WHAT IS THE OTHER ALTERNATIVE?
It may please be realised by all stake holders that once Money gone fully virtual everywhere for everything, Governments will have nothing to do with ‘MONEY’ in its Physical as well as Virtual forms.
a) The worse part of Government
signing off from ‘MONEY’ is that eventually the money in circulation that are created by disparate e-money Businesses will crest black hole of parallel economy owned by none.
b) The other way around is for the Governments to sign off altogether from the current practice of its Federal Bank, (Reserve Bank in the case of India) of printing, issuing and Controlling of Money in physical form and let all sorts of Private Business houses take it over, making available to everyone e-Wallets, (as already been done now), that can be filled with required amount of ‘Virtual Money’ in the form of #Cryptocurrency and its open ended e-wallets using BITCOIN concept and its transaction done everywhere for everything using advanced #Blockchain technology.
Everyday half a dozen of Private e-money business operating on prepaid basis are jumping on the bandwagon and will soon lead to an Economy entirely managed by Virtual Money of sorts by hundreds of Private & Governmental agencies, and the only way left is continuing to treat Money as commodity but with a mechanism in place to levy on its ever transaction and the revenue earned is shared by stake holders, Private and Governments.
Therefore, it eventually will make creation, distribution, control and regulation of Money in its Real and Virtual forms, none of Government’s business and their Federal banks  (RBI in India) will become shut shops.
Are the Governments game for that? Now we are neither here nor there allowing Nation’s economy towards its fast impending disruption. Time is long past to take decisions as Time and Technology waits for none.
Please see my other posts in papaulsblog.wordpress.com free for anyone to take and use.
—————————————–
Abraham Paul P.
Freelance ICT/ICN Consultant
Currently in Melbourne
fcomnet@gmail.com
Twitter.com/pa_paul
papaulsblog.wordpress.com
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Posted in IT based services, Money through Mobile (mTm), Politics & Governance, Social and Community affairs, Uncategorized | 1 Comment

Money through Mobile (mTm) for Inclusive growth


papaulsblog

Money through Mobile (mTm) for Inclusive growth.

Short link:  http://wp.me/p1ZsI2-zy By Abraham Paul. P.

Virtual money is best handled by Virtual banking system.

There are no two opinions about the urgent need of narrowing the gap between rich and poor by bringing in Inclusive growth. One of the ways to realize it is through Financial Inclusion of the huge un-banked population both in urban and rural areas across the country. Ensuring banking service to all through existing mode of banking system is  an unworkable proposition. Huge volume of low value bank accounts as envisaged in Prime Ministers Jan Dhan Yojana will lead most banks to collapse due to severe HR constraints and gross Customer dissatisfaction.

Why banks if can be done without? Banks both Public and Private are white Elephants always with an eye on profit over service.  A better option is to cater the needs of the poor using technology…

View original post 95 more words

Posted in Uncategorized | Leave a comment

How to save Telecom Business as Service Industry Handling a Vital Essential Service; at verge of collapse World over.


How to save Telecom Business as Service Industry Handling a Vital Essential Service, at Verge of Collapse, World over.

ABRAHAM PAUL. P.
Dated 13 June 2017

 http://wp.me/p1ZsI2-12v

Introduction: No one can stop advancement of Technology; and then Technologies also change too quickly. It is therefore, most Technology advancements disrupt the paths it grows through. Same is truer in Information Communication Technology also. Advancement in ICT brought in convergence of Systems & Networks, Modes of connectivity, the end links and User end devices and converged various forms of ICT based transactions in transforming Universal mode of Telecommunication that greatly helped humanity across the word.

INTERNET is the best thing happened in Communication technology in past few decades. IOT and IOE are the golden catch words that will change the whole world. Naturally therefore, strangling of “Net neutrality” will be a horrendous mistake.

Nonetheless, the following facts and concerns on this regard call for serious consideration of all stake holders, the Telecom Business groups, Regulators and the Government, lest the growth of Telecom business as service industry handling one of the Vital Essential Services get disrupted beyond retrieval.

This paper dwells upon how to save Telecom Business at the verge of collapse, World over.

In this connection please see what I wrote to TRAI in response to their consultation paper on ‘Net neutrality’ warning the danger of influx of OTTs in links below:

wp.me/p1ZsI2-GA , wp.me/p1ZsI2-G5 & wp.me/p1ZI2-ES

Mine, being a sole voice against millions supporting Net neutrality, naturally TRAI appears to have ignored it then.

It is heard, of late, that TRAI is having some rethinking after the US is seiously considering bringing in regulatory measures on Net neutrality and China already implemented it some time back more or less on the lines I proposed long back in this paper.

Telecom Business is all together a different Ball Game. Industrialists dealing it as new found Gold mines will be problematic.

Please click on the caption below to view the article in full. >>>

How to save legacy Telecom Business at verge of collapse.

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

Make India ‘Tax free’ regime using Power of Money going Virtual.


Make India ‘Tax free’ regime using Power of Money going Virtual.           

http://wp.me/p1ZsI2-11Y

To whom so ever interested.                              abraham-paul_photo  

AUTHOR: P Abraham Paul.     Dated June 8, 2017

INTRODUCTION.

 

I wrote about “Exclusively Banked Universal Money Management using Phones (acronym ‘Money through Mobile’ mTm) in a comprehensive paper covering almost all aspects related to it as early as in 1997 when no one has heard of those.

mTm with Integrated bank

The technology adaptation was based on the feature USSD (Unstructured Supplementary Service DATA) in modern form of Signalling CCS7 in Telecom systems in PSTN as well as in PLMN. I am the first one to implement IN based Prepaid service in GSM and the Mobile Wallet Facility.

I got it tested out using USSD, and the many features, products & services as detailed in my paper in the link: wp.me/p1ZsI2-4g

Universal mTm- System intgrated with Exclusive mTm- Bank

Need of regulatory measures by Government.

Visualising the need of having a uniform structure, applications & methods for it to succeed and the need of Government’s role in its regulatory requirements to overcome its disruptive potentials effect on economy, I did not venture to do it then myself and I had been writing to Government as well as to RBI and to Planning Commission on this and many other areas such as UUID, Exclusive Government owned Communication systems, Networks, Transport and the Connectivity issues, availability and readiness of required minimum Eco system and so on and so forth for it to take off. (Available in papaulsblogs in wordpress.com)

  1. Object.

The main object being Inclusive Growth through Financial Inclusion, in a country like India with of its most population residing in Rural areas, it is going to take considerable effort, time and money. But then there is nothing known as ‘Perfect’ in planning, wait for it and nothing happens. The way to go is to use best of the Contemporary and move on; always with an eye on the future, beginning from Cities, Towns and in places where required eco system readily available and then move on to other areas.

This is what many Private e-business Companies do with least concern of its main object of realising Inclusive growth by Financial Inclusion is being achieved or not.

Harnessing the Power of Money gone Virtual everywhere and for everything, give opportunity for Governments to generate enough revenue for their needs by levying a small percentage on every amount of money being transacted; a bye product BONUS, to make India a ‘TAX-FREE’ nation with no other Taxation, Direct and else , GST etc.

The key issue here compromising privacy in money deals of everyone, from the Poorest of poor to Multi-Billionairs, Organizations/Institutions/Trusts/Societies (good and bad), Banks/ MFCs and the worst it, the Political Parties.

However, going Digital in anything &  everything and everywhere being one of the Prime Object of Government’s Policies, that cannot happen without everything become Transparent, and along with it the Hyper Media like Google and else prying into everything  word ‘Privacy’ in almost getting obsolete. Look what happens when you are asked to link Aadhhar with PAN,  your every Bank account and money transactions have become Transparent. Facts being so, Governments overseeing every money being transacted using Technology systems as explained in this paper is just a  fate accompli and therefore,  it become meaningless to  object it as  inappropriate as it intrude Privacy.

Please click on the caption below to read the article in full.

Make India ‘Tax-free’ using Power of Money going Virtual.

——————–

NO ROCKET SCIENCE; MERE COMMON SENSE, WITHOT USUAL JARGONS.

Please see my other posts in papaulsblog.wordpress.com free for anyone to take and use.

——————–

Abraham Paul P. FIE, FIETE

Freelance ICT/ICN Consultant.

Melbourne.

fcomnet@gmail.com

Twitter.com/pa_paul

papaulsblog.wordpress.com

Posted in Money as a Commodity, Politics & Governance, Social and Community affairs, Uncategorized, Universally Governments Operating Money as Commodity | Leave a comment

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, in full (30 Pages).

My Beliefs, My Faith; My Religion.

God is Omnipresent, always, any time and every time, in everything, everywhere.

That includes our Mind, Soul and Thoughts.

The most valuable thing in our life is our Next Breath; the God given gift.

Every Breath we take in is God’s Blessing; every Breath we give out shall be our Thanks Giving.

Rest everything, just rituals.

P. Abraham Paul.

Originally Published by me as Essence of Christianity in SOCM. publication  in 2001.

Short link to view this article:- wp.me/p1ZsI2-105 and clicking the Caption at the top.

Abraham Paul P.

See my blogs on Technology,  Social & Community affairs in papaulsblog

 

 

 

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 need 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.

Please see my post in the link wp.me/p1ZSI2-XG

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  fully Cashless transactions?

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, Panchayat & Government offices and Franchisees through Kiosks.

Jumping into  #DigitalIndia, #Cashless etc.,  in a hurry  without the prerequisites such as mentioned above  is like putting the cart before the horse and will be disastrous. 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  and wp.me/p1ZsI2-11j

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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

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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., Money as a Commodity, Social and Community affairs | Tagged | 9 Comments