From: "Dinesh Goel" <goeldinesh24@gmail.com>
Date: Dec 12, 2016 9:53 AM
Subject: CRR, Cashless Payment to workers have come true. GOI makes it mandatory. India is still 'Sone Ki Chiria' as it has 35 lakh Cr of Gold in peoples hand.
To:
Cc:
Shared in Nov and now much more
Simple Steps Towards Sustainable Change
RBI and Ministry of Finance should come out with a small circular
In all loan accounts - No Loan shall be sanctioned and No Credit Limit shall be allowed to be used until Every Month A third Party CA certificate to be deposited by 10th of every month and thrice in a year by 15th of every month confirming from statement of accounts and bank statement - That All Salary and Employee related Statutory dues have been paid. This small change shall force the small , medium and large borrowers to be disciplined.
Bankers Job will become easier, plants and companies will not shut over night, rating agencies will get better information, Audit will be smooth and true. As such employees, promoters and government contribute almost every thing to the success of a venture. RBI can remove a promoter using SDR in debt restructuring by not employees.
All Contractual, regular labors will be paid by using Wallet, online transfers.
All Wallets and Banks should offer Hindi as 2nd language .
All Farmers to get payments in account and wallet .
All Uneducated persons to continue for another 6 months in cash and every uneducated person to be included in wallet/bank account by the local bodies, Panchayat, banks and even police shall help in this.
All Senior Citizens as per Electoral list will be contacted by the local police and bank officials as per their account and even the Post Offices and CGH Dispensary.
ALL COLLEGE STUDENTS TO HELP IN THIS. AS A DUTY TOWARDS NATION - EVERY STUDENT SHALL GIVE MINIMUM 15 days for this work.
ELECTORAL DATABASE SHOULD BE LINKED WITH THE POST OFFICES AND PEOPLE CAN CONNECT- can be used for confirmations and reaching out.
MNREGA and all state benefits to be passed on using the banking and wallet channel.
Every Working Professional, Government Employee of all levels from Peon, Driver to a Chairman, banking , sector , PSU, Central and State Government staff, judiciary, private sector etc should be responsible for helping 5 people minimum every week.
If we run this for one year, the impact in India can be more than 75%.
Another major change required is the change and implementation and monitoring - In case a Government Employee (Excise, Sales, Custom, Income, VAT, Service etc departments (Direct / Indirect Tax) as Investigating officer writes in file about the claims, (first assessment), and the same is found to be incorrect to an extent beyond 50%, the same is eligible and a fit case of considering as failure. As the pass percentage worldwide in all exams and in practical life is 50% and hence one cannot be allowed to continue if the assessment has such huge deviation.
It creates multiple issues and scope for corruption. In addition let there be a recognition and reward for being as close as possible and for faster resolution of cases.
I am sure that the Corporates small or large will not be fearful and also will come forward in better disclosures.
Another major issue is of end use of Tax Payers Money, If the money collected is put to transparent use and productive use, people will go a mile more to pay. Each one of us want a better life for future generations.
Impact of the Demonetization is always good.
Lets appreciate and also see precursor and impact post the event. Many economists and even CMIE took time to come out with the impact and cost of such a major task.
Lets have a look at some of the points
1. Considering the higher levels of money in banking channel - leads to more money for deployment , more credit and more of assets leading to reduced NPA
2. Impact on treasury, Banks will have to increase CRR
3. There is going to be negative carry as immediately funds cannot be deployed and most the money is in SB accounts which are interest bearing
4. More of withdrawals, prediction of withdrawal in a day and handling the liquidity will become an issue for treasury- ALM mismatch - 10000 withdrawal by 1 lakh people in a bank will lead to 100 crs (1b) withdrawal from SB accounts. Considering there are almost 50 crore plus people who are transacting, there is every possibility that a bank with 5 crore customers , 1 lakh customers can withdraw on a particular day.
5. Smaller Banks will have maximum issues
6. Price drop in real estate, reduced recruitment, reduced infrastructure spending , reduced capital formation and reduced expenses shall lead to a vicious cycle. As the creation of money starts with the investment and expenditure of Government, Corporates and inflows from outside country. This gets distributed for resources like man, material , machine and finally again reaches to the end consumer as buyer. The process if breaks , slows down , pick up shall need further boost. We all know, that during great depression of the world, governments had to tell people to dig and take money.
7. There is no major punishment to NPA defaulters and also there is no drive to catch cash, black money hoarders. Considering this, the Singapore example is not a right fitment. People doing this will again start as they are now convinced that under no circumstances, anything can be done to such a category and it is just a change of time more patience, some losses and there shall be time again for the new notes.
8. Banking - Cost of funds will increase as CRR will have to be increased and hence, marginal cost of funds will increase. In long-term unless there is positive carry and money is utilised in full. There will be major impact on the Sr Citizens deposits as the rates will reduce and their pay out will decrease.
9. SMALL enterprises and even shopkeepers will find it difficult to sustain as they will end up re pricing of the product and services considering taxation and increased cost of labour.
10. Holding of Gold will increase, import of gold will increase. This will lead to unproductive asset holding and forex outgo.
Additionally,
1. China manipulating currency, is a known fact
2. Foreign Banks affecting FX rates as cartel is also a known fact
3. Rigging in LIBOR has led to this prove
4. Impact of currency movement and national Fx reserves will be more
5. All Online stores - should be store based non Txn Ref Number we should be free to use any account and wallet. - not happening any where in the world.
6. Give should give one account at birth along with birth certificate. Mandatory
7. One online account to track growth. And behavioural changes.
8. Army - expense ..a donation by 5000 per annum by 10 Cr people - Mandatory.- Like TDS. Or that should be taken out from TDS to a separate account. Can create 50,000 crores corpus. Should be used for military's purchase and army welfare.
9. There should be close to 50-75 lakh crores of unaccounted money generated over last 60 years.
Considering the fact that EX PM and late Shri Rajiv Gandhi said that merely 10 paisa or just 10% of public expenses reaches the right people.
1. Wrong Sales, sales in cash
2. Wrong billing
3. Under invoicing
4. Political Corruption
5. Expenses in Elections
6. Corruption in various public , State and centre Companies
7. Corruption in panchayats, blocks, districts, city, corporations, state legislature
8. Various Government and state expenses
9. Banking sector gestures
10. Arms purchases
11. Scams
12. Subsidy related
Etc etc
We all have seen many instances and published and proven stories in last 60 years in India.
Our Country is at worst position in most of the International Index. Is it not a reflection.
We live , we accept, we have our own limitation, we follow, and if we are given better of everything, we shall even accept that!
Let's support and let's now make it success as in between if we stop it will be a big debacle. Together we have to make it success.
Even 6-8 lakh crore of surplus can give 100busd of surplus and we can create a 500 b USD Fund for Infra.
L&T can be a Nodal Agency. This 500b USD can change India and can give 14% GDP growth for next 10 years. And thereafter a great country to live.
Our PPP will increase, and China will feel the dent.
Let's Make it happen and start working for big!
Let's Make it happen and live this one life better! We have a chance!
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