By : M.S.Yatnatti Editor and Video Journalist Bengaluru :It is pertinent to note that de-monetization was totally messed up and now cash less theory which is not yet practical in India. Let big transaction be through cheques and small be with cash. World over small transactions are done in cash, not by card. To assume that India will go from 3% to 100% cashless in a matter of a few months, is an outlandish expectation,” PC told reporters in Nagpur. "Which country has cashless economy? Does the US? Does Singapore have it? Where is electricity in the country? Where are the machines?” he asked. "What calculations did the government do to say that one may withdraw Rs 24,000 when banks don't have enough cash to dispense,” Chidambaram said. "I can't get a Rs 2,000 note, yet crores in Rs 2,000 notes have found their way to individuals being raided all over the country,” senior Congressman and former finance minister P Chidambaram said, adding that there should be a criminal investigation and not just a probe by the Income-Tax department as initiated by the government. Reportedly Several lakh laborers' and daily wagers earners are on brink of starvation aftermath of demonetization. Today the right to property is not only a constitutional right, but also a human right, held the Supreme Court .A bank depositor keeps tax-paid money in his account. The funds may well be his/her salaries life's savings, or proceeds of provident fund, pension, provident fund, or any other legitimate income. These depositors are surely not Black money cash hoarders! Why punish them by imposing unreasonable restriction on withdrawal of cash? Just because there has not been any proper plan to print new currency notesfill bank vaults/ATMs with new cash after demonetization ? Who is responsible for this? .Does Section 26 (2) of the RBI Act, 1934, that triggered demonetisation, authorise the Central government to deprive a bank depositor to access his money in cash even for a split second? Surely not! Then, under which law are bank depositors being deprived of their right to properties, even partially or temporarily? The entire exercise, if by administrative instruction, seems to be unsustainable by law. Reportedly A disturbing feature in the aftermath of demonetisation has been the restrictions clamped on bank depositors from withdrawing cash freely. Bank deposits constitute property of the depositor. Under Article 300A of the Constitution, the right to property is a Constitutional right, which cannot be deprived save by the authority of law; this right cannot be deprived by administrative instructions. The Supreme Court has delivered several judgements on this constitutional principle. Reportedly Another challenge the central government faces is the overwhelming quantity of the old Rs 500 and 1000 notes being deposited in banks, giving rise to fears that the entire exercise may prove futile.
Indian economy is on death bed instead of black economy. People are not getting their own money from banks and ATMs .Money is money it cannot be white and black. Eliminate income tax everything is white and rationalize Indian tax system on sale of goods and services .Common people feel that government is looting their hard earn money by income tax .Let the government tax only one way .Sale tax Service tax on products and services is OK..The prime minister Modi could have gradually moved from a less-cash society to a cashless society instead he killed the vibrant economy of India by one master stroke and brought India to the brink of collapse and some reports express fear that several lakh daily wage earners will die without able to buy food for them and their families as they do not have cash because of unemployment and this what Supreme court has warned the central Government of riots that may happen in near futire if the situation s not brought under control..." The terms of redemption are so inconvenient for anyone other than black-marketeers, that for all purposes $50bn equivalent of rupees have been eliminated from the economy at a stroke, pending the introduction of new currency notes.Although cashless economy is a very good idea for the healthy growth of a country's economy, it cannot be completely achieved with in the current situation where the technology to use such processes is not in everyone's reach. It takes a long time to happen. Demonetisation of high denomination currency notes of Rs 500 and Rs 1,000 has proved to be an experiment too risky for the government and too testing for the general public. The Centre is making a big push for online and card-based transactions in the country to achieve its target of becoming a largely cashless economy. However, it seems the country is not ready for such an immediate shakeup. A report by Google India and Boston Consulting Group showed that last year around 75 per cent of transactions in India were cash-based while in developed countries like the US, Japan, France, Germany etc it was around 20-25 per cent. Due to demonetisation business for mobile or e-wallet companies has boosted by up to 4 times and the figures are keeping up. If Prime minister does attack black money holder alone it can be called as surgical strike .But he is suspecting every citizen of India as black money holder and ask them to prove that they do not have black money is not surgical strike it is strike on the every faithful citizen and it is murder f faith of people .It unethical war on its own citizens .If someone uses knife to kill someone you can punish the culprit but Government have no right to ban the knife itself. If someone has black money you punish such individuals and not all good citizens. And this has come as a surprise to everybody. The citizens, the nation and even within most of the government!”.Ultimately this fails to combat corruption and black money as it just exchange and re-print the same money. The most important fact, however, is that the share of large-value notes has only been increasing over the years. While some of this is no doubt due to the natural growth expansion of our economy, On the other hand, what needs to be noted is that there's no good estimate for how much of India's black money is in forms other than currency/physical notes such as gold, jewellery, land or any other form of wealth. Therefore, while banning Rs 500 and Rs 1,000 notes will tackle the black money that is in the form of hard cold cash, it won't affect other forms of black money. On similar lines, this move will, obviously, have little effect on black money stashed away in foreign tax havens. Government wants to eliminate black money by scrapping the currency notes and but by re-printing them it is not gaining anything .As reportedly people have smart accountants in India who have expertise to guide citizens to get the black money in white and white inblack legally .Reportedly one accountant made 1000 fake company and they invested in real company of several thousand crore and made that single company have real white money and it is reportedly headed by a big politician and then question of getting black money out remains a big question. This, however, brings us to the larger question: Why do we need a Rs 2,000 note and a new Rs 500 note if the move is to abolish combat corruption and black money as these large-value notes were being used to finance corruption and fund terrorism and move towards a cashless society?.Government does not own the accounts of people and putting restriction to withdraw their own money is illegal even though banning note may not be illegal. The sheer scale of demonetisation, reportedly aimed at curbing illicit money and fake notes but coupled with an attempt to force people to use the banking system, is hard to comprehend, since the policy affects just about every single Indian citizen and many others too. The Supreme Court on Friday noted with some degree of worry that riots could break out if the suffering due to demonetisation did not abate . Even that might be inadequate. Whatever the aims of the scheme, it is clear its impacts will be massive and hard to predict, since the cascading effects of such a big liquidity crunch could travel deep into the system. Unless cash supply is set right quickly, the distress could deepen. It will take years to fully understand the effects of this shock to the economy, which politicians have insisted is just a "temporary inconvenience”. For industrial labourers, the drying up of cash has meant that their wages were delayed. With withdrawal limit of Rs 50,000 per week for current accounts, businesses that pay wages in cash are strapped. Even in cases where the employers have managed to pay through bank accounts, labourers find it hard to access the money since they could not afford to skip work to stand in queues at banks for hours.Modi Government may end up troubling common man as physical money is used by common man and big black marketers may use virtual currencybit coin to avoid the taxes as reported by few experts. Many countries have no income tax laws and they are growing more than India..Reportedly Bitcoin was launched in 2009 as an alternative to fiat currencies by an unknown computer scientist using the pseudonym Satoshi Nakamoto (n.d.). Bitcoins are not printed like fiat money, but instead are "mined” using computing power in a distributed global network of volunteer software developers. At its core, Bitcoin is nothing more than a digital file that lists every transaction that has ever happened in the network in its version of a general ledger called the "block chain.” Bitcoin is the first example of a growing category of money known as cryptocurrency in which open-source software solves complex mathematical calculations to mine more Bitcoins (Coin Desk 2013a). These "miners” make the Bitcoin network function by validating transactions and thereby creating new Bitcoins. This occurs when the Bitcoin network collects all the transactions made during a set period of time (usually every 10 minutes) into a list called a "block.” Miners confirm these blocks of transactions and write them into the block chain by competing against each other to solve mathematical calculations. Every time a miner's system finds a solution that validates a block of transactions, that miner is awarded 25 Bitcoins (Coin Desk 2013b). Every four years, this reward is halved so that the total number of Bitcoins will never exceed 21 million. The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography. A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining.