How to save Nation’s Economy from impending Disruption?

How to save Nation’s Economy from impending disruption.

Short link:

To whomsoever it may be of interest.

AUTHOR: P. Abraham Paul. FIE, FIETE

 Dated June 5, 2017

Money cycle in mTm

Introduction: Incidentally I happened to be there in managing the roll out and operation & maintenance of one of the first GSM systems in India in Mumbai in 1995 and also in implemented the first IN based Prepaid service in GSM India.

Thereafter, I had innovated and tested out “Universal Money Management using Phones (acronym ‘Money through Mobile’ mTm), using Intelligent Network technology and CCS 7 signalling “Unstructured Supplementary Service DATA (USSD)” and “Mobile Wallet” feature as early as 1996 when no one has heard of Mobile Payments.

Visualising the need of having a uniform structure, applications & methods for it to succeed, and also of the negative impact of such features working on prepaid mode involving transaction of huge volume of money in physical and virtual forms between the Servive provider and its Users that would need regulatory measures by Government to overcome its disruptive potentials on nation’s economy, I did not venture to implement it myself then, and I had been writing to Government, RBI, Planning Commission and in Technology and Social Media on this and about many other related areas such as the need of UUID, Exclusive Government owned Communication systems, networks, the Connectivity issues, availability and readiness of required minimum Eco system, need of exclusive Payment gateways in the form Government controllred Digital Payment Banks and so on and so forth; for its take off and smooth rollout, in my paper Money through Mobile in the link and various other papers as can be seen in my blogs in

If I had implemented it as pioneer Fintech company then in the late ’90s without bothering about nation’s interest, I could have become a multi Billionaire long back.


1. Primary Object of Money through Mobile. (mTm).

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 to realize it.
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 had done, but with least concern of its main object of realizing Inclusive growth by Financial Inclusion are being achieved or not.

Keeping this in mind I wrote to every one on the Government, RBI and NPCI, BSNL/PMG Kerala and also had published in many Technology and Social Media sites, Hindu Business Line,  web sites like,, etc., and later blogged in Please see a comprehensive write and presentation in the link

Later I gave a presentation on this in to BSNL Kerala Management team a decade back and later in Institution of Engineers in Trivandrum, Kerala and in other forums. 

 Low Telecom coverage and lack of digital connectivity in rural and remote areas were major bottle necks then. I had suggested GPS connectivuty via communication satellites for its initial take off in rural areas as shown below.
India INTERNETcloud

  2. Need of Exclusive  Payment Banks.

But then the current Government in India stepped in with its Financial Inclusion idea PMJDY with good intentions but its success can’t be ensured through regular Banks, that are mostly are White Elephants, never can cater to the needs of huge population of poor and most among them still below poverty line and most are in villages and remote rural areas.
Universal mTm- System intgrated with Exclusive mTm- Bank
In my above mentioned paper ‘Exclusively Banked Universal Money Management for Inclusive Growth’  I had suggested the following solutions:
i. Create Payment Banks that include Post Offices network, and its franchisees closer to people in every Panchayat, that can create large number of jobs.
ii. Provide Access and connectivity to the zonal mTm system national telecom gateways and via communication satellites and GPS links connected with special purpose interactive Set top boxes (STB) in Remote rural areas.
iii. Create and use UUID for KYC and personal identification for all sorts of money transactions including DBT etc without the need of Phones.
iv. Uniform mode of Money transaction and Systems and 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.
However, 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, working on prepaid mode 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 Governments inaction in creating regulative mechanism in time.
It is only common sense to visualise that entire Money in circulation in Banks and were been 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.
Moreover, disparate systems, technology, features, products and and services and mode of operation will cause utter confusion in its users and at the POSs.

Finding that Governments appeared clueless of what was happening, I wrote again to RBI, and in different Media,  about the need of their urgent intervention of government as can be seen in my many blogs in  papaulsblog

In a presentation I gave in Institution of Engineers years back on ‘Power and Perils of Money going Virtual’ and the urgent need to regulate it’  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.

I had suggested that as advance in technology cannot be stopped, 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 and how.

Basically ownership of Money in its virtual formshall remain with Governments.
This can be done only by every Government making their Federal Bank (RBI in India) 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 as Government cannot handle it alone. 
It simply means that while origination money in virtual form and its e-wallets shall be from Government’s Central Banks; that are then obtained by others as its users, just the same way Real Money in Currency are handled by Banks and its users that include Private e-money businesses, known as #Fintech
It is therefore, and also RBI itself cannot handle it, I had been frequently urging RBI to create exclusive Payment Banks under the Control of Government /RBI including the Post Office network. 
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.
However, these banks and other exclusive payment banks including Post Office banking network will have 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 that become illegal tender. 
Unfortunately current Government in great hurry to move over to #Digitalisation
and #e-money was virtually (probably unknowingly) leading the Country’s Economy to disruption by not only allowing but also encouraging and brazenly pushing people to do all sorts of their Payments using debit cards etc of fast mushrooming Private e-money Businesses, working on pre-paid mode, defeating the primary object in creation of ‘Payment Banks’

This also increased further hardship caused with Demonetisation as these Companies sucked in and pocketed whatever Real Money and liquidity left out and freshly created and released in new currency notes after Demonetisation, most of it had surreptitiously exchanged and accumulated by Blackmoney holders.

It is strange that Government  continues to allow many more Private banks and gigantic foreign e-commerce companies to become self established Payment Banks working on prepaid mode; unable to discriminate and confused between the purpose of PAYMENT BANKS from  PAYMENT GATEWAYS / PAYMENT BROKER SYSTEMS that defeated the basic purpose of the creation of Payment Banks by Government in the first place.
The net effect is going to be that soon there will be Virtual money everywhere owned by none and Government will be mere onlookers having nothing to do with ‘Money’ and their Federal Banks will become shut shops.
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 as Advantage Government & Advantage People, and Legal Banking Industry in my blog “Inclusive Growth, #DigitalMoney anywhere any time, Eradication of Corruption / Black Money, and better restraint on terrorism – all in one go.
Please see my blog in the link  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 proliferation of terrorism.
This will also help to deter ill effects of Money in politics killing the democratic process in a big way.

Money Cycle, Real & Virtual

3. How Technology can be harnessed to make India a TAX free Country?

It is cruel to burden ordinary people with taxes on their hard earned income for meagre livelihood.

Harnessing the Power of  Money going Virtual everywhere and for everything, give a good 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, discarding all current forms of Taxations; Direct and else, GST etc.

Thus the poor and the considerably large population in low income group and farmers on their meagre hard earned money for their livelihood in a developing country which is most unacceptable can be avoided.

I am sure that Government will be able to enhance its revenue at least by ten fold by moving over to the idea of ‘Government Operate Money as Commodity’ #GOMAC as suggested herein without burdening people with other forms of duties and Taxes; Direct, 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.

4. New upcoming Technologies that are handy for RBI look for are:

i) Crypto Currency to create ‘Money as Data’

ii) Creation of e-wallets to hold money in cryptocurrency using BITCOIN concept in the form of open ended e-Wallets, it’s value varying from Zero to any Amount for every user of Money in virtual form, right from Big Banks down to the Mobile phones.

iii) Usage of advanced Block Chain Technology for its distribution and operation etc.

The above technologies can be further developed (which India is fully capable of doing) and shalled be used uniformly by all stakeholders.

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 huge wealth abroad; NPAs here and scoot.

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

The Concept embedded can be adopted Universally by every Country across the World  as explained in my paper ‘Universally Governments Operate Money as a Commodity’ #UGOMAC in the link

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

5.1. One World, One Economy, Sharing of Resouces and its equitable distribution ensuring eradication of poverty with ‘Universal Basic Income’ #UBI are the order of the future towards a Righteous World.

Universally Governments Operate Money as Commodity can become handy to establish the concept of One World, One Economy and realization of Universal Basic Income UBI with a Universal fund autonomously raised and contributed by every Government by interleaving every country’s #GOMAC  servers  with a Centralised #UGOMAC server. 

It is 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’ with Sharing  and Equitable distribution of Resources’ to enable “Universal Basic Income” ‘Eradication of Poverty’ and improved ‘Standard of Living’ all across the world with assured ‘Universal Basic Income’ by creating a common fund contributed by all Nations.

5.2. Controlling movement of Money is the only way to restrain Terrorism.

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:

6. 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.

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.




It may please be realised by all stake holders that once Money gone fully virtual everywhere for everything that are entirely managed by Private e-money businesses as what is happening now, Governments will have nothing to do with ‘MONEY’ in its Physical as well as Virtual forms. It is already happening that Governments across the World have become mere onlooker and soon the Federals Banks face a shutdown.
a) The worse part of it in Governments getting pushed out from the ‘MONEY’ part is that eventually the money in circulation that are created by disparate e-money Businesses will create black holes of parallel economy created by many and owned by none.
It is surprising that Government is not yet aware of this phenomenon already taking place, and mostly by its own creation in blindly pushing digital money without any regulatory measures in place, what I had been howling from rooftops everywhere for many years now. However, it is now meaningless to cry on the spilt milk. 
b) The only way available to Governments is; while continuing the current practice of its Federal Bank, (Reserve Bank in the case of India) printing, issuing and Controlling of Money in physical form it also shall;  more of it in Virtual form; for some more time and then share it with all sorts of Private Business houses that had already taken off in making available to everyone of their own e-money & e-Wallet.
The method operation is going to that all these e-money businesses mostly working on pre-paid mode take in real money from their users and give out ‘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 now for the Government (RBI/NPCI) is to also join the bandwagon.
Then Government should create create a mechanism in place in the form of a Centralised Payment Gateway so that all money transactions in the country happens only through it like RTGS / NEFT.
Along with it Government should declare and treat Money as commodity, but and charge a levy on its every 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 also in Virtual forms, continue as also Government’s business and by declaring and treating Money as a Commodity, the Federal banks (RBI in India) will be able to generate revenue in every money trasanctions happens between anyone for anything and everything, the rate of levy to be decided from time to time according to the needs of the nation. 
It is envisaged that the revenue earned thus will be many fold than  what are being collected by various Duties, Taxes, Direct as well as GST etc. thus making India a TAX FREE NATION.
As the method of leaving charges is on every money transacted being done in Government run Payment Gateway is parameter driven, there can be safeguards to exclude / exempt Common people having upto certain income from levies and will not burdened with it while enjoy Tax free benefit with others.
Are the Governments and the Political Masters game for these as it will bring in full transparency of money dealings of everyone including the Political lot, is the big question?
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 free for anyone to take and use.
P. Abraham Paul. FIE, FIETE.
Freelance ICT/ICN Consultant
Currently in Melbourne

About Abraham Paul

Vision & Objective: Telecom has always been the passion of my life. After 60 years of outstanding career and many personal contributions to the industry, I still have same urge, and desire to give back to the industry, the abundant experience, knowledge and potential acquired, by providing consultancy service to forward looking enterprises and entrepreneurs in Legacy and New generation Telecom & IT in the areas of Business Management, Technology, Engineering and Services. Apolitical and religiously unbiased.
This entry was posted in IT based services, Money through Mobile (mTm), Politics & Governance, Social and Community affairs, Uncategorized. Bookmark the permalink.

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